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The dollar index continues to weaken, and gold touches the $3,300 mark
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: The US dollar index continues to weaken, and gold touches the $3,300 mark again." Hope it will be helpful to you! The original content is as follows:
On May 21, early trading in Asia on Wednesday, Beijing time, the US dollar index hovered around 99.94. On Tuesday, Fed officials made more cautious remarks about the economy, while traders were looking forward to upcoming talks between the U.S. and Japan, which could include exchange rate discussions as part of the trade deal. The US dollar index continued to weaken and fell to around the 100 mark, eventually closing down 0.34% to 100.02. The benchmark 10-year U.S. Treasury yield closed at 4.491%; the two-year U.S. Treasury yield closed at 3.977%. Benefiting from the fact that there is still a certain degree of uncertainty in the market, spot gold first fell and then rose, started a rise during the European session, and accelerated upward in the US session, rising nearly 2% during the day, approaching the $3,300 mark, and finally closed up 1.84% to $3,289.98 per ounce. Spot silver finally closed up 2.26% at $33.06 per ounce. On Wednesday, gold rose above the $3,300 mark as US media reported that Israel may be preparing to attack Iran's nuclear facilities, but it has fallen as of press time. As the outlook for the oil market seems to be still full of fog, the two oils fell into volatility, WTI crude oil fluctuated back and forth around US$62, and finally closed up 0.11% to US$62.12/barrel; Brent crude oil closed up 0.12% to US$65.01/barrel. On Wednesday, U.S. oil rose 3%.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovers around 99.94. The U.S. dollar index fell to 100.23 on Tuesday, continuing weeks of decline after failing to test the 50-day moving average of 101.60. Previously, Moody's downgraded the US sovereignty rating and issued a dovish review by the Federal ReserveOn the other hand, it emphasizes that there is limited room for rising fiscal risks and interest rate cuts. Technically, the US dollar index hovers above the key support area of 100.21, and the momentum remains bearish. As market sentiment tends to be negative, any drop below 100 may trigger a more drastic sell-off.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
Which trading was held in Asian trading, gold trading was around 3301.14. In the early Asian market, spot gold continued to rise, once hitting a more than one-week high of $3,304.06 per ounce, as media reports said that Israel was preparing to attack Iran's nuclear facilities, further providing safe-haven buying support for gold prices. Economic data on this trading day are relatively small. Investors mainly pay attention to news related to the US tax reform bill, news related to geopolitical situations, and pay attention to the United NationsThe speeches of the Chu officials and changes in the international trade situation.
2) Analysis of crude oil market trends
On Wednesday, crude oil trading around 62.86. Several U.S. officials familiar with the latest intelligence told eouu.cnN that the U.S. has obtained new intelligence that shows Israel is preparing to attack Iran's nuclear facilities, even as U.S. President Donald Trump has been seeking diplomatic agreements with Tehran. eouu.cnN quoted an unnamed official as saying it was unclear whether the Israeli leader had made the final decision to conduct the attack. Whether and how Israel launches an attack is likely to depend on its assessment of the United States and Tehran in negotiations on nuclear program.
Forex market trading reminder on May 21, 2025
①14:00UK April CPI monthly rate
②14:00UK April retail price index monthly rate
③22:30UK April EIA crude oil inventories in the week from the United States to May 16
④22:30UK EIA Cushing crude oil inventories in the week from the United States to May 16
④22:30UK EIA Cushing crude oil inventories in the week from the United States to May 16
⑤22:30 EIA strategic oil reserve inventory in the week from the United States to May 16
⑥ The next day, the Federal Reserve Barkin attended the "Feder Listening" event
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