The dollar index rose on surging crude prices and rising T-note yields, while precious metals slipped as global bond yields hit multi-year highs.
WTI crude oil surged 4% to a 3.75-month high, raising inflation expectations and supporting the dollar.
Dollar index rose on surging crude prices, higher T-note yields, and expectations of a Fed rate hike.
Gold prices settled lower as dollar strength, soaring global bond yields, and rate hike expectations weighed on precious metals.
Silver prices closed down amid dollar strength and higher bond yields, though Chinese industrial demand limited losses.
EUR/USD fell as dollar strength and rising crude prices weighed on the euro despite improved German ZEW expectations.
USD/JPY rose as higher T-note yields, rising crude oil, and potential defense spending debt issuance pressured the yen.
The dollar index climbed as a 4% surge in WTI crude oil prices fueled inflation expectations and bolstered the case for further Fed tightening. Simultaneously, 10-year T-note yields reached a 19-year high of 5.04%, pressuring precious metals and weighing on the euro and yen. Markets are currently pricing in a 96% probability of a 25 basis point rate hike at the upcoming FOMC meeting.
The dollar index was supported by a 4% surge in crude oil prices, which raised inflation expectations, and a rise in 10-year T-note yields to a 19-year high.
Gold and silver prices are under pressure due to a stronger dollar, soaring global bond yields, and expectations of further monetary tightening by central banks.