Dollar down while equities and Gold rise
|More US inflation data gave the dollar a shove lower and boosted gold, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.
US factory-gate inflation helps support sentiment
Yesterday’s consumer price inflation failed to lift markets but the buyers are trying again in the wake of the PPI data, which has followed a similar pattern. A calmer tone also prevails after last night’s mini-panic over fears of an immediate attack on Iran by Israel, though nervousness will persist around this issue for the time being. With inflation data out of the way, earnings season wrapped up and a ‘no change’ from the Fed expected next week, investors would do well to remember the adage ‘never short a quiet market’.
Gold higher on geopolitical fears
Tariff uncertainty has taken back seat to war fears as the main driver of upside in gold. The price is testing the $3400 area again, a level that has marked the extent of upside over the past two months. Renewed USD weakness always helps of course, and since inflation still looks contained there is reason to expect further falls for the greenback ahead of next week’s likely-uneventful Fed meeting.
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