The dollar index (DXY) is down by 0.22% but remains above a 1.5-week low. This decline is influenced by stock strength and the nomination of Stephen Miran as a temporary Fed Governor by President Trump, who supports lower interest rates. In related news, federal funds futures show a 91% chance of a 25 basis points rate cut at the upcoming FOMC meeting.
President Trump also announced a 100% tariff on semiconductor imports, with exemptions possible for companies committing to domestic production. Additionally, tariffs on U.S. imports from India are set to double to 50%. If enacted as planned, average U.S. tariffs are projected to rise from 13.3% to 15.2%.
In the precious metals market, December gold is up 0.83% to a 3.5-month high, while September silver has risen 0.76%. Gold prices are buoyed by a weaker dollar and geopolitical risks, including tariff impacts and ongoing conflicts in Ukraine and the Middle East.
