Commodities
USD Climbs Amid Hawkish Fed Outlook and Mideast Tensions
The US Dollar (USD) Index has maintained moderate gains above 101.00 in the European morning, while Gold (XAU/USD) slumps below $4,200, losing about 2.5% on the day.
Investors are wary of risk due to a hawkish Federal Reserve (Fed) outlook and escalating Mideast tensions. US President Donald Trump rejected Iran's proposal to end the conflict and reopen the Strait of Hormuz, calling it 'not acceptable'.
Cleveland Federal Reserve President Beth Hammack delivered a moderately hawkish message on Friday, emphasizing concerns about inflationary pressures and demand-driven capital expenditures keeping price pressures elevated.