The dollar index (DXY) fell by 0.13% on Friday, influenced by weaker-than-expected US economic indicators, including Q4 GDP growth of 1.4% compared to the anticipated 2.8%. Other significant data included a decline in the February S&P manufacturing PMI to 51.2, below the forecast of 52.4, and a revision down of the University of Michigan’s February consumer sentiment index to 56.6, from an expected 57.3.
Additionally, the US Supreme Court invalidated President Trump’s global tariffs, stating he exceeded his authority, which raised concerns about a budget deficit. Despite these changes, the December core PCE price index rose by 2.7%, exceeding the expected 2.6% and indicating possible upward pressure on inflation. The Atlanta Fed President Raphael Bostic suggested maintaining mildly restrictive interest rates in response to projected US growth.
In terms of commodity prices, gold saw an increase of $83.50 (1.67%), driven by geopolitical tensions in the Middle East and the implications of the Supreme Court ruling on tariffs. The price of gold is also buoyed by ongoing central bank demand, particularly from China, where reserves have increased for the fifteenth consecutive month.
