The dollar index fell slightly by -0.08% on Tuesday as T-note yields gave up an early advance, weakening interest rate differentials. Expectations of a Fed rate cut next week are at 96%. The OECD raised its US 2025 GDP forecast to +2.0%. President Trump may nominate Kevin Hassett as the new Fed Chair, seen as dovish.

EUR/USD rose by +0.12% on Tuesday, supported by Eurozone’s Nov CPI rising more than expected. The OECD also raised its Eurozone 2025 GDP estimate. Swaps are pricing in a 1% chance of a -25 bp rate cut by the ECB. USD/JPY rose by +0.26% as T-note yields pressured the yen.

Gold and silver prices closed lower on Tuesday due to dollar strength and reduced safe-haven demand from stocks. Precious metals are supported by expectations of a Fed rate cut. Silver has support from tight Chinese inventories. Central bank demand for gold remains strong.

Long liquidation pressures have weighed on precious metals since mid-October. Holdings in gold and silver ETFs have fallen recently. Global central banks purchased 220 MT of gold in Q3, up 28% from Q2. China’s PBOC has boosted its gold reserves for the twelfth consecutive month.

Read more at Yahoo Finance: Dollar Fades as Bond Yields Fall and Stocks Climb