The greenback is looking to enter this week with a massive increase; today’s market remained fully under the dollar’s side with gold prices dipping after a momentous run. The gold manage to shed some gains from last week, the main culprit from the sudden dip is regarded to be the Abe election victory; on the other hand, the euro also dips on Spain’s presences.
It has been a great day for the greenback today, the increases were positive signs that the currency might continue to grow despite being in the rubble due to the looming tax bets. On the other hand, the gold prices continue to stumble more and more hitting a two-week low just this Monday.
Dollar, Gold Prices
The greenback top the spotlight today with news pointing to an incremental to massive increase this Monday; the Dollar Spot Index was up by 0.2% hitting its highest levels from almost 14 weeks. The U.S. tax reform is really looking to extend the greenback’s gains all-throughout this week. The bullish run is also expected to extend as analysts weigh on the possible effect of the “Abenomics” in the following days and with gold’s following performance as well.
The news about the hawkish Fed outlook on the next possible interest rate hike this year also helps in buoying the currency’s fate. One more thing to note today is the surging dollar price against the yen today. The pair managed to attain the 114.00 flat figures today, marking the dollar’s first ever dominant performance against the currency since July.
Gold Prices Dip on Abenomics
The gold prices today were troubled due to the Japanese general election and Shinzo Abe winning and extending his term. The spot gold was seen stumbling today and was down a total of 0.4% at $1,275.80 an ounce. On the other hand, the gold futures in U.S. for December were also down by massive figures at $1,273.61 an ounce.
According to the international service provider, Natixis, "(Gold) is just following what the dollar is doing," and "People are also getting more excited about the stock markets, and that removes a bit of business from gold."
Euro, Pound Prices
The continued uncertainties in Spain continue to linger and weigh down the euro price today; the currency managed to tally a 0.4% low to $1.1741 hitting its lowest in almost two weeks. The British pound also suffered the same fate and dips by 0.2% to $1.3163. On the brighter side, the European Central Bank is expected to conclude a meeting this Thursday and discuss their stimulus plan this coming 2018.
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