DXY Breaks 13-Month Peak
The US dollar index (DXY) strengthened again and briefly touched 101.80, its highest level in 13 months. At the same time, the DXY remained positive around 101.56 despite declining US government bond yields.
This condition indicates that the dollar's strengthening is supported not only by Treasury yields, but also by demand for safe havens amid global market pressures. Investors are still seeking refuge in the dollar following a selloff in technology stocks and growing expectations that the Federal Reserve could raise interest rates again this year.
For gold, the strengthening DXY poses significant pressure because it makes dollar-priced gold more expensive for buyers using other currencies. As long as the DXY remains at high levels, gold may struggle to stage a strong rebound, especially ahead of the release of US PCE inflation data.
Source: Newsmaker.id
