US Iran Tensions – The ongoing USD weakness and escalating US-Iran geopolitical tensions offer fresh legs to the yellow metal’s surge to six-year tops. Gold prices are now testing the $1,440 figure en route the level $1,450 barrier.
Read More : Spot Gold Upside Resistance Levels $1,444
The U.S. dollar declined in late trading on Monday, as investors remained cautious on the greenback amid high bets on potential rate cuts by U.S. Federal Reserve and Washington’s fresh sanctions on Iran.
Investors and traders believed that the Fed cutting interest rates would become a certainty in July, as the probabilities of “ease” in Fed’s interest rates remained 100 percent on Monday, according to the CME Group’s FedWatch tool.
Such widespread expectations have put a damper on the greenback since the central bank decided to hold its benchmark rates steady and hinted at future rate cuts last week.
U.S. President Donald Trump signed an executive order on Monday to impose additional economic sanctions on Iran, including sanctions on Iran’s Supreme Leader Ayatollah Ali Khamenei and many others.
The U.S. president claimed Monday’s move came after “a series of aggressive behaviors by the Iranian regime in recent weeks,” including the shooting down of a U.S. drone.
The dollar index, which measures the greenback against six major peers, decreased 0.24 percent at 95.9838 in late trading.
In late New York trading, the euro rose to 1.1400 dollars from 1.1368 dollars in the previous session, and the British pound was up to 1.2742 dollars from 1.2735 U.S. dollars in the previous session. The Australian dollar was up to 0.6966 dollar from 0.6926 dollar.
The U.S. dollar bought 107.31 Japanese yen, lower than 107.41 Japanese yen of the previous session. The U.S. dollar decreased to 0.9721 Swiss franc from 0.9769 Swiss franc, and it decreased to 1.3188 Canadian dollars from 1.3209 Canadian dollars. Enditem
