The dollar index rose slightly on Friday due to hawkish Fed comments, leading to a slight increase in T-note yields. President Trump’s potential appointment of a dovish Fed Chair negatively impacted the dollar. Market expectations show a 24% chance of a rate cut at the upcoming FOMC meeting on January 27-28.

Gold prices reached a 7-week high on Friday, while silver prices fluctuated. Precious metals faced pressures as the dollar strengthened and T-note yields rose. Strong central bank demand for gold and concerns over US tariffs and geopolitical risks supported precious metals. Silver also saw support from tight Chinese inventories.

The yen was under pressure on Friday due to a stronger dollar and a rally in the Nikkei Stock Index. Expectations of a BOJ rate hike at the next policy meeting supported the yen. Japan’s Oct industrial production was revised upward, further bolstering the yen. Market pricing indicates a 91% chance of a BOJ rate hike on December 19.

Read more at Yahoo Finance: Dollar Finds Support from Higher T-Note Yields