Experts at Morgan Stanley forecast that the U.S. dollar could decline to levels last seen during the Covid-19 pandemic by mid-2026, impacted by interest rate cuts and slowing economic growth, according to the banks latest outlook.
The U.S. dollar opened the week on a weaker note, reflecting renewed market anxiety over protectionist trade policies and their potential to curb economic growth while fueling inflationary pressures.
The U.S. economy experienced its first contraction in three years during the first quarter of 2025, with gross domestic product GDP declining at an annualized rate of 0.2% between January and March.
In a world marked by escalating geopolitical tensions and volatile financial markets, gold has forcefully reasserted its position as a safe haven and reliable store of value. The yellow metals impressive performance in the first five months of 2025 signals not a temporary trend, but a structural shift in investor behavior and global market dynamics.
Indias economy recorded a stronger-than-expected growth rate in the final quarter of the fiscal year, driven by a moderate recovery in agricultural activity and a notable rise in investment, despite rising global economic uncertainty.
In a move aimed at supporting the domestic economy ahead of the presidential elections, the Bank of Korea announced on Thursday a 25 basis point cut in its benchmark interest rate, lowering it 2.75% to 2.5%. This unexpected decision comes just five days before the scheduled election on June 3rd, amid political instability and visible signs of economic slowdown.
The U.S. dollar experienced a notable rise during early Thursday trading, supported by a court decision that prevents former President Donald Trump imposing tariffs on foreign imports. This judicial development marks a significant shift in U.S. trade policy and has had an immediate impact on financial markets, particularly the foreign exchange market.
Several key factors have prompted major financial institutions to revise their gold forecasts upward. Notably, Citigroup raised its three-month price target for gold 3,150 to 3,500 per ounce. This upward revision reflects rising risks, including U.S. protectionist policies, budgetary concerns, and ongoing geopolitical conflicts in regions such as Ukraine and the Middle East.
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