Gold finally got some respite from the dollar’s onslaught.
The dollar weakened against the yenand the euro in a likely technical correction from an overbought zone after Friday’s powerful US jobs data sent the US dollar index soaring to a high of nearly 87.
With the recovery in the US economy looking more and more real, markets are factoring in a change in the Fed’s ultra-low interest rate policy – as soon as July 2015.
Rising interest rates are manna for the US dollar as a currency. Strength in the dollar is negative for gold, commodities and crude because it makes them more expensive in local currencies outside America, crimping demand.
The recent correction in the...
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