Dollar gains 0.41% as tech selloff drives safe-haven flows
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Gold recorded strong weekly gains even as the U.S. dollar strengthened 0.7% to its highest level since late October. The dollar's rise typically pressures gold, so the divergence suggests safe-haven demand or other supportive factors are outweighing the currency headwind. The sustainability of gold's rally is uncertain given the dollar's strength.
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US nonfarm payrolls significantly exceeded expectations in October, with unemployment holding at 4.1-4.2%. This confirmed resilience in the labor market is increasing market expectations for a Federal Reserve rate hike in December, despite some uncertainty regarding the exact magnitude and subsequent policy trajectory. Confidence in this assessment is high.
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