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USD Index Falls to 2-Month Low as Gold Hits Record on Fed Rate Cut Bets
The US Dollar Index declined 0.42% to reach a 2.25-month low as markets price in a 25 basis point rate cut at Wednesday's FOMC meeting conclusion. Gold surged to fresh record highs, capitalizing on dollar weakness and increased Fed easing expectations through year-end. Market positioning suggests traders anticipate an aggressive easing cycle, with futures markets pricing in multiple rate cuts before 2025. The dovish Fed pivot comes amid cooling inflation data and softening labor market conditions. Technical indicators show the dollar index breaking below key support at 101.50, with next targets at 100.80. Gold's momentum remains strong above $2,580/oz, with immediate resistance at $2,600. The bearish dollar outlook could accelerate if the Fed signals a more accommodative stance than currently priced in, potentially benefiting commodity currencies and risk assets.
DXY
Sentiment:
Very Negative
Source: Marketaux