The US dollar index fell by 0.14% on Thursday amid fears of a potential government shutdown and escalating US-Iran tensions. This drop was further amplified by a larger-than-expected November trade deficit of $56.8 billion, the widest in four months, compared to expectations of $44.0 billion. However, the dollar recovered slightly later in the day as signs of an approaching government funding deal emerged.
The US reported a decrease in weekly initial unemployment claims by 1,000, totaling 209,000, slightly above the anticipated 205,000. Continuing claims fell by 38,000 to a six-month low of 1.827 million, which is better than the expected 1.850 million. Additionally, factory orders in November rose by 2.7% month-over-month, outperforming the expected 1.6% increase.
In the precious metals market, gold and silver prices surged due to the weaker dollar, with gold reaching a record high of $5,586.20 per ounce. The demand for these assets was increased by geopolitical uncertainties and a growing preference for safe-haven investments, as investors pivot away from dollar assets amidst political risks.
