Dollar Gains Ahead of Powell Speech,Euro Slides
NEW YORK – The U.S. dollar is strengthening in early trading as markets brace for remarks from Federal Reserve Chair jerome Powell, while the euro is experiencing a pullback amid anticipation of his assessment of the American economy. Powell is scheduled to speak at the Providence Greater Providence Chamber of Commerce in Rhode Island and will take questions from the public.Investors are keenly focused on potential clues regarding the future trajectory of monetary policy.
The dollar’s rise reflects investor caution ahead of Powell’s address, with traders seeking clarity on the Fed’s outlook for inflation and economic growth. A hawkish tone from the central bank chief could further bolster the dollar, potentially impacting global commodity prices and international trade. The euro’s decline is partly attributed to the dollar’s strength, and also ongoing concerns about economic conditions in the Eurozone.
Analysts remain generally bullish on gold, despite anticipating short-term price dips driven by technical factors. Kelvin Wong, market analyst for Asia and the Pacific region, noted the dollar’s weakness is currently providing support for gold prices.
Demand for gold, often seen as a safe-haven asset, is also reflected in increased holdings at the SPDR Gold Trust Fund.Yesterday saw a 6.01 metric ton increase, marking the second consecutive daily rise and bringing total holdings to 1,000,000.57 metric tons – the highest level since august 3, 2022.
