Precious metals have found strong support over the past couple of days, with gold surging back to $1,340 per ounce and silver to $20.00 per troy ounce. The U.S. dollar has weakened while benchmark government bond yields have fallen across the board once again.
Dollar bullish investors were left empty handed on Wednesday following the Federal Reserve’s widely expected decision to keep U.S. interest rates unchanged. It is becoming increasingly clear that the ongoing global uncertainties have created an unstable financial landscape which continues to keep most central banks cautious.
While the U.S. dollar has turned slightly lower as trading for the new week has commenced, the major currency rebounded and moved significantly higher at the conclusion of last week with this pressuring other major currencies like the Euro and the British Pound.