The dollar index is up at a 1-week high, supported by weakness in the British pound and eased US-China trade tensions. Markets expect a rate cut at the next FOMC meeting. Euro is down due to dollar strength and French budget issues, but ECB comments provide some support. Swaps are pricing in a low chance of an ECB rate cut.

Japanese trade news supports the yen, with exports and imports rising. However, concerns about a less hawkish monetary policy under new Prime Minister Takaichi limit gains. Higher T-note yields also pressure the yen. Gold prices fall as the dollar rallies and US-China trade tensions ease, leading to long liquidation pressure.

Precious metals continue to receive support from safe-haven demand amid the US government shutdown, trade tensions, and Fed rate cuts. Fund buying of precious metal ETFs remains strong, with gold and silver holdings at multi-year highs. Rich Asplund has no positions in the mentioned securities, and all information is for informational purposes only.

Read more at Yahoo Finance: Dollar Slightly Higher and Gold Corrects Lower