This week witnessed significant shifts in global markets, with gold taking center stage with record-breaking surges while the US dollar weakened. Let's delve into the details:

Market Performance Review

Dollar Index and US Treasury Yields

The dollar index weakened notably this week, retreating from a brief high above the 99 level early in the week to 98.42. US Treasury yields also generally declined, with the 10-year yield breaking the 4% mark. This decline reflects growing market expectations that the Federal Reserve will cut interest rates later this year, driving safe-haven flows into gold and the bond market.

Gold and Precious Metals

Precious metals continued their significant gains. Spot gold hit all-time highs for five consecutive days, approaching $4380 per ounce. Silver also surged, breaking through $54 per ounce to reach a new all-time high. These rises are fueled by increasing global risk concerns, US credit risk events, and growing expectations of interest rate cuts. However, Friday saw a sharp downturn in both gold and silver prices, with declines of approximately 2% and 4% respectively by 10 PM.

Non-US Currencies

Boosted by a weaker dollar, the Euro, British Pound, and Japanese Yen all recorded gains against the dollar this week. The dollar-yen exchange rate was impacted by bad loan problems facing two US banks, leading to increased demand for safe-haven assets and a retreat of the dollar-yen exchange rate from an eight-month high, breaking through the 150 level on Friday.

Oil Prices

Oil prices generally trended downwards this week and are on track to record a third consecutive weekly decline. The IEA warned of a significant global supply glut by 2026, coupled with ongoing trade tensions, contributing

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