The U.S. dollar has weakened significantly, with its index trading around the 99.5–100 range, following reduced expectations for Federal Reserve interest rate hikes. Recent U.S. labor market and inflation data have cooled prospects for further monetary tightening. Escalating geopolitical tensions involving Iran are raising concerns about potential inflation increases and energy supply disruptions. These combined factors are reinforcing expectations for Fed rate cuts and contributing to increased volatility across financial markets, particularly in gold prices.
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