The DXY index, which measures the spot performance of the US dollar, shows the currency falling to a three-week low. The USD is now at 105.1 surging by only 0.1 points in the day’s trade with an uptick of 0.10%. On the other hand, gold prices are also heading south as commodity investors are indulging in profit bookings and sell-offs. Gold prices had rallied touching $2,380 last week but faced corrections as retail investors and institutional funds booked short-term profits.
Also Read: BRICS: Economist Predicts One Final Rally Before the Markets Crash 50%
Both the US dollar and gold now remain on a slippery slope due to macroeconomic conditions affecting their price performance. The development puts the commodity markets in the spotlight as it delivered top returns to investors this year in 2024. Read here to learn how the commodity markets generated massive profits for retail investors, institutional funds, and central banks.
Also Read: BRICS: 11 Currencies Dip Against the US Dollar
Decline in Jobs Pulls the US Dollar Down to 3-Week Lows
The dollar fell to a three-week low after the latest data shows US jobs slowed down in April 2024. Employers added fewer jobs than expected and the markets reacted to the development. The report was below expectations as employers added only 175,000 jobs last month compared to the expected jobs rate of 243,000.
Also Read: Commodity Market: Copper Prices To Rise 50% & Reach $15,000?
In addition, the unemployment rate in the US rose to 3.9% from 3.8% adding to the worries for the US dollar. Moreover, the annual wage gains cooled down, boosting bets that the Federal Reserve might cut interest rates twice this year. “An unemployment rate of 3.9% is not something disastrous,” said Jason Pride, Chief of Investment Strategy and Research at Glenmede Corporation in Philadelphia.
“This indicates an economy that is not declining dramatically, but it definitely indicates a looser labor market. The data’s soft across the board from the Fed’s perspective,” he said. In conclusion, if the labor market does not recover next month, trouble might brew for the US dollar’s prospects.
