The dollar index rose by +0.30% but stayed below Monday’s high due to higher T-note yields. Richmond Fed President Barkin expects tax cuts and deregulation to boost growth. Fed Governor Miran’s dovish comments weighed on the dollar, with markets pricing in an 18% chance of a rate cut at the next FOMC meeting.

Euro fell by -0.27% as dollar strength and negative economic news weighed on the euro. Eurozone Dec S&P composite PMI was revised lower, and German CPI rose less than expected. Swaps indicate a 1% chance of an ECB rate hike at the next meeting on February 5.

USD/JPY rose by +0.15% as the yen weakened against a stronger dollar. Higher T-note yields also pressured the yen. Japanese fiscal concerns continue to weigh on the yen, despite limited losses after the Japan 10-year JGB bond yield hit a 27-year high.

Gold and silver prices rallied on Tuesday, with gold up +1.00% and silver up +5.72%. Precious metals climbed on safe-haven demand amid geopolitical risks in Venezuela. Dovish comments from Fed Governor Miran and strong central bank demand for gold supported prices.

Fund demand for precious metals remains strong, with long holdings in gold ETFs hitting a 3.25-year high. Central banks continue to purchase gold, with China’s PBOC boosting reserves and global central banks buying 220 MT in Q3. This article was originally published on Barchart.com.

Read more at Yahoo Finance: Dollar Rises Alongside T-Note Yields