The Dollar got weaker against major peers after Janet Yellen’s speech saying that it was prudent for the Federal Reserve to gradually adjust policy over time. Meanwhile, Gold climbed for a second day.
Gold headed for a fourth straight weekly advance as investors await the start of Donald Trump’s presidency.
Before Trump is sworn today as the 45th American president, rallies in the Dollar and Equities are easing this week, with investors getting more and more anxious for indications that the administration will follow through on growth campaign promises.
As uncertainty takes over, George Soros is predicting that the euphoria among stock investors since Trump’s victory will end.
“It’s clear that investors have reached a level where they are prepared to wait and see what the Trump administration has to offer,” said Ric Spooner, chief market analyst at CMC Markets Asia Pacific Ltd. in Sydney.
In a speech on Wednesday, Yellen said the Fed was close to achieving its goals of full employment and stable prices. The odds of another Fed rate hike as soon as May have risen to 50% from 42% a day ago, Futures contracts show.