The dollar index rose by 0.35% on Thursday, driven by safe-haven demand amid ongoing tensions in Iran and a strong labor market. US weekly continuing unemployment claims fell to a 1.75-year low of 1.819 million, while initial claims increased by 5,000 to 210,000. Additionally, crude oil prices surged by 4%, raising inflation expectations that may influence Federal Reserve policy.
In the Eurozone, the German consumer confidence index declined to a 2-year low of -28.0, below expectations, and the money supply rose by 3.0% year-on-year, missing a forecast of 3.2%. Meanwhile, the Bank of Japan faces a 66% probability of a 25 bp rate hike at its next meeting, as Japan’s PPI services prices rose by 2.7% year-on-year, exceeding expectations.
Precious metals saw significant losses, with gold prices down 3.87% and silver down 6.48%. This drop is attributed to a stronger dollar and increasing global bond yields. Recent sales by Turkey’s central bank of 52.4 metric tons of gold, valued at over $8 billion, also contributed to the decline. Global inflation forecasts have been revised upward due to the conflict in Iran.
