Here’s what you need to know on Tuesday, February 24:
The US dollar (USD) recovered most of its intraday losses and was broadly stable on Monday as markets digested the Supreme Court’s decision against US President Donald Trump’s tariffs and his decision to impose additional fees over the weekend. Gold benefited from risk aversion and reached a three-week high above $5,200.
The US Dollar Index (DXY) is trading near the 97.70 level following confusion over the Supreme Court’s ruling against Trump’s tariffs. In retaliation, Trump announced 15% tariffs on global trade to keep trade agreements sustainable.
Today’s US dollar price
The table below shows the current percentage change of the United States Dollar (USD) against the major listed currencies. The US dollar was strongest against the Australian dollar.
| USD | EUR | GBP | JPY | BOOR | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | 0.02% | -0.26% | 0.10% | 0.42% | 0.37% | -0.07% | |
| EUR | 0.02% | 0.04% | -0.27% | 0.14% | 0.44% | 0.39% | -0.05% | |
| GBP | -0.02% | -0.04% | -0.31% | 0.08% | 0.40% | 0.34% | -0.09% | |
| JPY | 0.26% | 0.27% | 0.31% | 0.38% | 0.69% | 0.65% | 0.21% | |
| BOOR | -0.10% | -0.14% | -0.08% | -0.38% | 0.31% | 0.26% | -0.16% | |
| AUD | -0.42% | -0.44% | -0.40% | -0.69% | -0.31% | -0.05% | -0.49% | |
| NZD | -0.37% | -0.39% | -0.34% | -0.65% | -0.26% | 0.05% | -0.44% | |
| CHF | 0.07% | 0.05% | 0.09% | -0.21% | 0.16% | 0.49% | 0.44% |
The heat map shows the percentage changes of the major currencies relative to each other. The base currency is selected from the left column and the quote currency from the top row. For example, if you select the US dollar from the left column and move along the horizontal line to the Japanese yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
EUR/USD quotes are near the 1.1790 price zone, slightly in the red after moving away from the gains after the dollar regained traction.
GBP/USD is trading near the 1.3490 price area, which has been subdued after losing almost all of its position intraday amid trading uncertainty.
AUD/USD is trading near the 0.7060 level, down more than 0.40% after the Australian dollar (AUD) failed to take advantage of the delicate US dollar (USD) earlier in the day.
USD/JPY is hovering near 154.60, while the Japanese yen (JPY) strengthened after delicate national consumer price index (CPI) data for January raised hopes for an interest rate hike by the Bank of Japan (BoJ).
Gold is trading at $5,211, up over 2% and back to $5,200 on renewed appetite for unthreatening haven assets.
What’s next on the docket:
Wednesday, February 25:
Thursday, February 26:
Friday, February 27:
- Switzerland’s GDP for the fourth quarter.
- Flash February CPI in Germany in February.
- Preliminary February HICP index in Germany.
- Canada’s GDP for the fourth quarter.
- US Producer Price Index (PPI).
Gold FAQs
Gold has played a key role in human history as it has been widely used as a store of value and a medium of exchange. Nowadays, beyond its luster and utilize in jewelry, the precious metal is widely viewed as a safe-haven asset, meaning it is considered a good investment in turbulent times. Gold is also widely seen as a hedge against inflation and currency depreciation because it is not tied to any particular issuer or government.
Central banks are the largest holders of gold. To support their currencies in turbulent times, central banks typically diversify their reserves and purchase gold to improve the perceived strength of the economy and currency. High gold reserves may provide a source of confidence in the country’s solvency. According to data from the World Gold Council, central banks added 1,136 tons of gold to their reserves in 2022, worth about $70 billion. This is the highest annual purchase since registration began. Central banks in emerging economies such as China, India and Turkey are rapidly increasing their gold reserves.
Gold has an inverse correlation with the US dollar and US treasury bonds, which are both major reserve assets and unthreatening haven assets. When the dollar depreciates, gold tends to rise, allowing investors and central banks to diversify their holdings in turbulent times. Gold is also inversely correlated with risky assets. A rally in the stock market tends to weaken the price of gold, while sell-offs in riskier markets support the precious metal.
The price may change due to many factors. Geopolitical instability or fear of a deep recession can quickly cause gold prices to rise due to its safe-haven status. Gold, as a non-yielding asset, tends to rise at lower interest rates, while the higher cost of money tends to weigh on the yellow metal. Still, most of the movements depend on the behavior of the US dollar (USD) when the asset is priced in dollars (XAU/USD). A robust dollar tends to keep the gold price in check, while a weaker dollar will likely cause gold prices to rise.
