By Areena FxGold prices fell to $2,155 per ounce from $2,163 on Friday and $2,184 a week ago, leading to a rise in the value of the US Dollar against other currencies.
The Dollar Index (DXY), which measures the Greenback against six major currencies, increased to 103.05 from Friday’s opening at 102.40.
US Treasury Yields also rose, with the benchmark 10-year rate settling at 4.31% compared to 4.29% on Friday. The two-year US treasury bond yield gained four basis points to 4.73%.
Despite the overall decline in the stock market, the US Dollar extended its gains against various currencies. The Australian Dollar (AUD/USD) and New Zealand’s Kiwi (NZD/USD) faced significant declines, dropping to 0.6085 from 0.6125.
The US Dollar also strengthened against the Japanese Yen (USD/JPY), reaching 149.04 at the New York close, up from its opening at 148.30 on Friday.
In addition, the Sterling (GBP/USD) and the Euro (EUR/USD) both weakened against the US Dollar. GBP/USD closed at 1.2730, down from its opening of 1.2750, while EUR/USD dipped to 1.0880 from 1.0900 on Friday.
Investors are awaiting the outcomes of central bank policy meetings scheduled for this week, including the Federal Reserve’s FOMC meeting on Thursday. The Bank of Japan, Reserve Bank of Australia, Swiss National Bank, and Bank of England will also meet to discuss monetary policy.
Key economic data releases for the week include China’s trifecta of Retail Sales, Industrial Production, Fixed Asset Investment data, Europe’s Final February Inflation Rate, and the US March NAHB Housing Market Index.
From a trading perspective, market participants should expect increased volatility, particularly with the release of Chinese economic data. Traders may look to sell rallies in the Aussie, Yen, Euro, and Pound as the US Dollar strengthens against these currencies.