Market Insights on Forex Precious Metals & Commodities

The euro rose 0.13% to 1.0953 against the dollar the European economy and the euro are particularly sensitive to the Ukraine war and oil prices.

EUR/USD slipped 0.63% to 1.0913, paring gains in overnight trading, and edged lower this week for a sixth straight weekly loss. Meanwhile, the euro has fallen more than 2.5% against the dollar so far in March.

The euro ended the session at $1.1073 against the dollar, rising up by 1.62%, having hit a 22-month low of $1.0806 on Monday, 7th March 2022.

The growing unease in the market may support the dollar as we will see the U.S. economy remain in a favorable position in the short term. This is because the U.S. is less dependent on Russian energy supplies than Europe.

Gold prices jumped yesterday, with spot gold setting a new high for the week at $1,788.47 per ounce. WTI oil rose by more than 1% in late trading to $83.65 per barrel.

Gold prices fell slightly as the dollar index rallied. This comes after gold had been gaining support from the stagflation theme, brewing in recent weeks and from a weaker dollar.

Gold broke through the $1,800 barrier at one-point last week but fell last Friday. WTI oil rose for an eight consecutive week and hit its highest in nearly seven years.

Gold prices hit a one-month high yesterday as the falling dollar and U.S. bond yields caused investors to turn to gold as a hedge against inflation risks.

The minutes suggest that Fed officials are facing a high degree of uncertainty about both their mission to achieve full employment and price stability.

The poor performance of the U.S. stock market and the decline in the yield of the U.S. 10-year Treasury bonds boosted the demand for gold.