Recent remarks from the Federal Reserve helped the dollar move higher
Gold dove below $1,200 for the first time since February after the dollar rose to a two-month high. The dollar recently gained momentum after comments from top Federal Reserve officials pointed to an interest hike in the near future. The rate hike would increase the dollar’s value, making the dollar-denominated precious metal less attractive to investors. Gold initially fell more than 1% below $1,200, only to later settle at $1,209 an ounce. The U.S. dollar index rose 0.35% while the euro struggled to maintain a 2.5-month low against the greenback.
While U.S. and U.K. markets were closed for a holiday, European stock markets were mostly higher on Monday’s choppy trading session. The pan-European Stoxx 600 gained 0.1%, the French CAC 40 added 0.15% and the German DAX 30 rose 0.4% to touch a one-month high.
Major economic events include Japanese and German unemployment later today. This week holds a number of critical economic events, including the European Central Bank’s meeting on Thursday, OPEC’s meeting also on Thursday, and the U.S. nonfarm payrolls report on Friday. Considering recent statements from the Fed, the nonfarm payrolls report will be in high focus. For the most important binary options news, stay updated with OptionsClick, the top binary options trading broker.