The dollar and gold settled amid a demand for the origins of the safe haven after US President Donald Trump said that customs duties on Mexico and Canada will go as planned early next month.
Currency
The dollar fell to its lowest level in more than two months against a group of other major currencies on Monday.
Trump said yesterday that the customs duties on imports from Canada and Mexico will enter into force “on time and on the appointed date” despite the efforts made by the two countries to enhance border security and stop smuggling of fentanel to the United States before the deadline has passed on March 4.
Many have hoped that the largest commercial partner of the United States would be able to persuade the Trump administration to postpone the imposition of customs duties that will be applied to imports from the two countries to the United States of more than $ 918 billion.
His comments motivated the demand for safe haven such as gold and US Treasury bonds, and contributed to the stability of the dollar – which decreased by about 3% from the height of its record in January – US economic data weaker than expected that raised concerns about growth prospects.
The euro settled at 1.0486 dollars, a small decrease from its highest level in a month recorded yesterday, Monday, in the aftermath of the German elections, while the British pound rose at $ 1.2639, which is also slightly less than the highest level in two months recorded yesterday.
Elaine settled at 149.78 of the dollar, backed by the markets of the market to further raising interest rates from the Bank of Japan, after it has recorded its strongest level since mid -December at 148.5 Yena to the dollar on Monday.
Amid these effects, the dollar index, which establishes the performance of the currency against 6 other major currencies, settled at 106.53 of its lowest level in two months recorded yesterday at 106.1.
“Since last or two weeks, American economic news has been saying what is said that the United States has somewhat lost its exceptional economic situation. Whenever we see a reasonable tone to avoid risks in stock markets … the dollar gets On a kind of traditional support as a safe haven. “
He added, “With these customs duties approaching, it is difficult to see a great recovery in the morale of the risk … and this would keep the defensive support of the dollar.”
The Canadian dollar recorded the weakest level in more than a week at 1.4257 for the dollar, but it remained out of the 1.4792 level for the dollar that fell on February 3 in the wake of Trump’s initial announcement of customs duties on Canada.
In Europe, the focus has been focused on German policy, as the expected German counselor Friedrich Mertz is looking to form a government quickly after winning the elections on Sunday, but he faces difficult coalition talks and the possibility of an unstable parliament after the rise of the extremist right and left -wing parties.
gold
Gold decreased in instant transactions 0.43% to $ 2939.9 an ounce, a decrease of about 6 dollars from the highest level ever at $ 2956.15, which he recorded on Monday, and US gold futures fell 0.33% to $ 2953.5.
The market strategy in IG John Rong said that the market dealers are preparing again to the risks of customs tariffs on Canada and Mexico with the approaching date next week.
Trump said yesterday that the customs duties on imports from Canada and Mexico will apply “on the specified date” despite the efforts of the two countries to enhance border security and stop the smuggling of fentanel to the United States before the deadline on March 4 after its extension previously.
Meanwhile, investors and economists expect that the US Federal Reserve will respond “strongly and methodological” for changes in inflation and the labor market.
Gold is a safe investment during the period of economic and political ambiguity, and it flourishes in the low interest rate environment.
Investors are awaiting the personal consumer spending report in the United States, which is the preferred measure of inflation of the US Central Bank, to obtain indicators on the path of reducing interest rates. The report is scheduled to be issued on Friday.
As for other precious minerals, silver in instant transactions decreased 0.6% to $ 32.17 an ounce, and platinum fell 0.6% to 986.6 dollars, while palladium fell 0.32% to 940.17 dollars.
