The dollar index is down by -0.35% due to weaker-than-expected US economic news, increasing chances of a Fed rate cut next month. Retail sales rose +0.2% m/m, while Sep PPI exceeded expectations at +2.7% y/y. The Fed is likely to cut interest rates by 25 bp at the next FOMC meeting.

Eurozone Oct new car registrations rose +5.8% y/y, supporting the euro. Swaps predict a 2% chance of an ECB rate cut. USD/JPY is down by -0.57%, with the yen gaining against the dollar as Japan considers intervening in the forex market. Markets foresee a 40% chance of a BOJ rate hike.

Gold and silver prices are up today due to weaker US economic news. Precious metals are seen as a store of value, with central bank demand and geopolitical risks supporting prices. However, easing inflation expectations and improved prospects for peace in Ukraine are limiting gains. Long liquidation pressures have also weighed on prices.

Central bank demand for gold remains strong, with China’s PBOC increasing its gold reserves for the twelfth consecutive month. Global central banks purchased 220 MT of gold in Q3, up 28% from Q2. Despite recent highs in mid-October, long liquidation pressures have led to a decline in gold and silver ETF holdings.

Read more at Yahoo Finance: Dollar Slides and Gold Jumps on Improved Fed Rate Cut Chances