US Dollar Gains Strength: Impact on Gold & Oil in the Crypto World

• US Dollar Strength Causes Dip in Oil and Gold Prices
• Gold Prices at Risk of Falling
• US Dollar Resilient Amid Red Sea Crisis
• The Implications of the Red Sea Crisis

US Dollar Strength Causes Dip in Oil and Gold Prices

The US dollar index (DXY) has seen an increase from 102 to 103.5 points this week, reflecting a near 1.5% growth in three days. This surge contrasts with the declining prices of Crude and Brent oil, which fell by approximately 1% due to the strengthening of the US dollar in the markets. As the US dollar grows, Brent crude futures have dropped to $77.93 per barrel, with crude futures (WTI) going down to $71.97 per barrel.

Gold Prices at Risk of Falling

Gold prices have also seen a decline, falling from $2,050 to $2,010, with another downturn potentially pushing it below the $2,000 mark. The future of gold prices for this week is at risk due to potential further rise in the US dollar indices.

US Dollar Resilient Amid Red Sea Crisis

Despite the ongoing Red Sea crisis, the USD has maintained its strength, successfully avoiding a crash in global markets. A one-month high was achieved on Wednesday following efforts by the Feds to push back against interest rate cut expectations. Yet, there is cautiousness among investors due to possibilities of the Red Sea tensions escalating in the forthcoming days. These tensions have led the US stock market to dip for three straight days, negatively affecting Nasdaq and the Dow Jones Industrial Index and causing leading stocks to reach monthly lows.

The Implications of the Red Sea Crisis

This crisis in the Red Sea raises concerns as potential disruptions by Houthi rebels could affect trade. On the previous Sunday, a missile struck a US-owned ship off the Yemeni coast in the Red Sea. The anti-ship ballistic missile was launched from Houthi-controlled territories in Yemen, as per the US Central Command.

Edited by Jonathan Stoker