The dollar index rose by +0.65% to a 1.5-week high. Fed Chair Powell’s lack of hints on rate cuts and hawkish comments from Chicago Fed President Goolsbee drove the dollar higher. US Aug new home sales surged to a 3.5-year high of 800,000, defying expectations of a decline to 650,000.

EUR/USD fell by -0.68% as dollar strength pressured the euro. The German Sep IFO business survey hit a 4-month low. Markets expect the Fed to cut rates while the ECB is seen as done with rate cuts for now.

USD/JPY rose by +0.83% as the yen dropped to a 3-week low vs. the dollar. Signs of weakness in Japan’s manufacturing and higher T-note yields weighed on the yen. Japan’s Ministry of Finance plans to cut long-term debt issuance.

Precious metal prices fell on Wednesday due to a stronger dollar and higher T-note yields. Central bank comments also weighed on gold prices. Gold and silver hit contract highs earlier in the week. Geopolitical risks boost safe-haven demand for precious metals.

Precious metals receive support from fund buying of ETFs. Gold and silver holdings in ETFs reached multi-year highs. Geopolitical risks and trade tensions continue to drive demand for precious metals as a safe haven.

Read more at Yahoo Finance: Dollar Pushes Higher on Hawkish Fed and US Economic Strength