The dollar index rose by +0.13% on Friday, recovering from a 2-week low, following hawkish comments from Fed presidents. Markets now discount a 42% chance of a Fed rate cut in December. EUR/USD fell by -0.12% on Friday due to dollar strength, despite Eurozone Q3 GDP revision higher.

USD/JPY fell by -0.01% as the yen found support from Japan’s Sep tertiary industry index increase and higher JGB yields. Concerns over Japanese political uncertainty and a potential change in fiscal policy weigh on the yen. Markets discount a 32% chance of a BOJ rate hike in December.

Precious metals sold off sharply on Friday, with gold down -2.39% and silver down -4.67%, as expectations for Fed rate cuts decreased. Silver prices also declined on weak Chinese economic data. Central bank demand for gold remains strong, supporting prices amid global uncertainty.

China’s Oct industrial production rose weaker than expected at +4.9% y/y, while Oct new home prices fell 0.45% m/m, marking the twenty-ninth consecutive month of declines. These factors contribute to the pressure on precious metals prices. Long liquidation of gold and silver ETF holdings has also impacted prices.

Read more at Yahoo Finance: Dollar Gains and Gold Plunges as Fed Rate Cut Expectations Fall