Dollar rises near 13-month high as Fed rate bets build
A stronger dollar and higher U.S. rate expectations pushed gold below $4,000 for the first time in more than seven months, while investors awaited U.S. PCE inflation data for policy clues.
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Fact Check
Multiple primary Reuters reports confirm each element of the claim. 'Dollar rides high on Fed rate-hike bets' and 'Gold extends losses on Fed tightening outlook' both state the dollar reached a 13-month high on rising Fed rate expectations, that gold broke below $4,000/oz for the first time since November 2025 (about seven months), and that investors awaited U.S. (May core) PCE inflation data. The Reuters Trading Day roundup independently corroborates the dollar index 13-month high and gold below $4,000. All claim components are well-supported by authoritative primary financial reporting.
Summary
The dollar climbed to a 13-month high as traders priced higher short-term U.S. rates, driven by a resilient U.S. economy, wider yield differentials and hawkish Federal Reserve expectations. The move pressured other markets, sending gold below $4,000 an ounce for the first time in more than seven months and briefly pushing bitcoin under $60,000, while investors looked to U.S. Personal Consumption Expenditures data for further guidance on monetary policy.
Terms & Concepts
- core personal consumption expenditures: The Federal Reserve's preferred underlying U.S. inflation measure, excluding more volatile items.
- yield differentials: The gap between interest rates or bond yields in different markets, often influencing currency flows.
- non-yielding asset: An asset like gold that does not pay interest or dividends.