The dollar index fell to a 2.25-month low due to Fed-friendly US economic reports. Nonfarm payrolls rose by +64,000 in November, but the unemployment rate hit a 4-year high of 4.6%. The euro climbed to a 2.5-month high, supported by German business sentiment. The Eurozone manufacturing PMI unexpectedly contracted.

USD/JPY fell after weak US economic news. Japan’s manufacturing PMI rose to a 6-month high. Precious metals prices settled lower, affected by falling inflation expectations and weak demand for industrial metals. The dollar’s decline is supportive of metals prices. Central bank demand for gold remains strong.

Bullion reserves in China’s PBOC rose in November, supporting gold prices. Central banks globally purchased more gold in Q3. Silver faces support from tight Chinese inventories. Long liquidation pressures have weighed on precious metals, but fund demand for silver has rebounded.

Read more at Yahoo Finance: Dollar Weakens on Disappointing US Economic News