The dollar index rose 0.26% as surging crude oil prices and higher bond yields intensified inflation concerns, triggering a sell-off in precious metals and weighing on the euro and yen.
Gold prices dropped on stronger dollar, soaring bond yields, and ECB rate hike.
Silver followed gold lower, pressured by rising yields and dollar strength.
Dollar index rose on surge in crude oil and T-note yields, boosting inflation expectations and Fed rate hike bets.
Euro fell as stronger dollar and higher crude oil prices weigh on Eurozone economy.
Yen weakened as higher US yields and oil prices hurt Japan's import-heavy economy.
The US dollar index climbed 0.26% on Thursday, bolstered by a 6% surge in WTI crude oil prices and rising T-note yields. This shift in market dynamics pressured precious metals, with gold and silver hitting one-week lows, while the euro and yen weakened against the greenback amid heightened inflation expectations and central bank policy shifts.
Precious metals were pressured by a stronger dollar, soaring global bond yields, and the ECB's decision to raise interest rates, which increased the opportunity cost of holding non-yielding assets.
As Japan imports over 90% of its energy, the 6% surge in crude oil prices is viewed as a negative factor for the Japanese economy, contributing to the yen's weakness against the dollar.