The dollar index (DXY) rose by 0.24% on Tuesday amid stock market weakness and hawkish comments from New York Fed President John Williams, who noted that inflation remains high. Conversely, the U.S. trade deficit widened to $77.6 billion in May, the largest in 14 months, negatively impacting Q2 GDP forecasts.
In Germany, May industrial production increased by 0.9%, exceeding expectations of 0.1% and marking the largest growth in eight months. The euro fell by 0.25% against the dollar despite this positive data. In Japan, the leading index CI reached a 4.75-year high at 116.8, while household spending declined by only 0.4%, less than expected, supporting a slight rise in the yen.
Gold prices fell by 0.24% and silver by 1.60%, driven lower by a stronger dollar and rising inflation expectations due to a 2% surge in crude oil prices. Precious metals also faced pressure from fund liquidations, with gold ETF holdings reaching a 9.5-month low, though central bank demand, particularly from China’s PBOC, provided some support with a 320,000-ounce increase in reserves.
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