On Thursday, the dollar index fell to a 1.5-week low, closing down 0.95%, pressured by a 2% rally in the yen following Japan’s government intervention efforts. US Q1 GDP growth was weaker than expected at 2.0%, while personal income rose by 0.6%, surpassing forecasts of 0.3%. Weekly initial unemployment claims dropped by 26,000 to a 57-year low of 189,000, indicating a robust labor market.
In Europe, the euro gained 0.52% against the dollar after Eurozone inflation rose 3.0% year-over-year, marking the fastest increase in 2.5 years. However, Eurozone Q1 GDP growth was only 0.1%, below anticipated figures. The ECB indicated a probable interest rate hike in June, contingent on energy price trends.
Amid rising US-Iran tensions, gold prices increased by 1.49% as investors sought safe-haven assets. The US Central Command has proposed military action against Iran following blockade strategies in the Strait of Hormuz. Uncertainty surrounding global economic policies, alongside a significant rise in China’s gold reserves to 74.38 million troy ounces, further supports gold prices.
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