Gold Futures Market News and Commentary
The dollar index (DXY00) on Tuesday fell by -0.777 (-0.75%) and posted a 1-week low. A rally in stocks Tuesday reduced the liquidity demand for the dollar. Also, strength in GBP/USD weighed on the dollar as the British pound climbed to a 1-1/2 week high Tuesday on stronger-than-expected UK labor market data. In addition, EUR/USD pushed higher Tuesday and weighed on the dollar on hawkish ECB comments and better-than-expected Eurozone economic data.
Fed comments Tuesday were supportive of the dollar. Fed Chair Powell said the "U.S. economy is strong, and we think it's well-positioned to withstand less accommodative monetary policy." He added that the FOMC "won't hesitate" to raise interest rates above the neutral level to bring inflation down. Also, St. Louis Fed President Bullard said a "super-strong" U.S. labor market will help support consumer spending and keep the economy on track, and he sees a "fairly good performance for the U.S. economy through 2022 and 2023."... Read more