The US Dollar Index (DXY) has climbed in the spending power of the dollar, as the US retail sector report shows massive gains in consumer spending for January.
The DXY is currently up to 90.94 (+0.49%) following a slump in Gold prices down to $1783.88 (-0.36%). The Great British Pound (GBP) followed suit with a fall in its exchange rate, down to $1.3852 (-0.0047%) this morning, and the Euro trading for $1.20 (-54%). Silver faltered for the first day in a long stretch of climbs, down to $27.12 (-0.77%), with Platinum taking a stiff dive to $1,257 (-1.68%) at the opening bell.
The upturn in the spending power of the dollar comes as the US retail report notes a surge in spending for January 2021.
Retail sales across the US rose by 5.3%, marking the largest increase in the sector in 8 months. Investors see this as a sign that President Biden’s proposed $1.9 trillion COVID relief package would be funneled back into the economy by consumers.
Investors have noted the volatility of the Gold market in recent weeks, and have speculated on the recent gains of the dollar to prevent a crash. Prices for the precious metal are in danger of creeping even lower with confidence in the US dollar rising according to a report from analyst Justin McQueen.
London’s FTSE is down this morning at 6,724.25 (-0.35%), with the Stoxx 600 trailing at 417.19 with a loss of 2.01 (-0.45%).
The Shanghai Composite Index (SHCOMP) made gains today, up 51.6 points to 3,655.09 (+1.43%), with Hong Kongs Hang Sang Index (HSI) following a similar trend to gain 338.28 up to 31,084.94 (+1.1%) before close.
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