The dollar index rose by +0.34% to a four-session high due to yen weakness and eased US-China trade tensions. The Oct Philadelphia Fed non-manufacturing business activity survey fell to a 4-month low. Markets are pricing in a 97% chance of a -25 bp rate cut at the next FOMC meeting. EUR/USD fell by -0.31% on Tuesday.

USD/JPY rose by +0.79% as Sanae Takaichi won the vote to become Japan’s Prime Minister, advocating for increased deficit spending. Japan’s Sep machine tool orders were revised upward to +11.0% y/y. December COMEX gold and silver prices closed down on Tuesday due to a stronger dollar and easing US-China trade tensions.

Gold and silver prices rallied to record highs last week due to safe-haven demand amid US tariffs, geopolitical risks, and US-China trade tensions. Precious metals continue to receive support from fund buying of precious metal ETFs. President Trump’s attacks on Fed independence are boosting demand for gold.

Read more at Yahoo Finance: Dollar Climbs and Gold Plunges