- Treasury bonds rose on safe-haven demand from the Trump administration.
- Following the release of personal consumption expenditures (PCE) price increase information in the US, the probability of the Fed cutting interest rates further increased, while unearned income gains increased.
- The Russia-Ukraine conflict and the conflict in the Middle East have led to regional tensions and increased security needs.
Silver prices (XAG/USD) continued their upward trend for the sixth day in a row, trading around $29.90 in the Asian session on Friday. The dollar will be supported by safe-haven demand as markets await signs of a U.S. recovery under the Trump administration and the Reserve Bank’s 2025 interest rate forecast.
Unearned income came to the fore in U.S. economic data as personal spending rose against expectations of a federal rate cut next year, suggesting the possibility of more rate cuts. The protracted conflict between Russia and Ukraine and conflicts in the Middle East have increased the region’s risk exposure, adding to its safe-haven appeal.
Russia’s State Security Service announced on Thursday that Ukrainian intelligence services had carried out a series of assassinations in Moscow targeting senior Russian officials and their families. Meanwhile, Gaza authorities reported that five Palestinian journalists were killed in Israeli airstrikes. However, the Israeli military claimed that the men were members of the Islamic Jihad group and were carrying out propaganda activities.
The U.S. Dollar Index (DXY), which measures the value of the U.S. dollar (USD) against a basket of six major currencies, is trading above 108.00, below a peak of 108.54, its highest since November 2022. There is room for the dollar to rise. Valuations in valuable assets are on the line as a strong dollar makes assets more expensive for holders of other currencies.
