On a US holiday, the dollar falls and gold rises
Gold is trading in profit after falling more than 5% last week as some monetary authorities raise borrowing costs to reduce inflation.
Despite this, volatility in other markets continues to support the safe asset par excellence. The yellow metal added 0.03% to $1,839.97 an ounce, while palladium rose 1.72% and platinum rose 0.72%.
“Today is a public holiday in the US, which means liquidity — as well as volatility — should be lower, making moves in gold difficult without a new catalyst,” City Index analyst Matt Simpson told CNBC.
The dollar is helping as it depreciates by 0.22% against the euro, which, despite Macron’s loss of an absolute majority, continues to rise.
Against the Japanese yen, both the dollar (0.47%) and the euro (0.23%) show losses. It’s at the time when The central bank of Japan kept short-term interest rates at -0.1% and the target yield on 10-year sovereign bonds is close to zero.
The Bloomberg Dollar Index, which measures the strength of green money against 10 competing currencies, lost 0.24% to 104.4440, while the Fed’s message of aggressive monetary policy “could not have been clearer” – says Rodrigo Catril, expert. analyst at the Central Bank of Australia in an interview with CNBC.
