Key Points:
The dollar strengthens, pressuring the euro and pound after employment data.
Gold falls despite tariff tensions, impacted by ETF outflows.
Oil rises due to lower supply in the U.S. and trade optimism.
The dollar rebounded from its recent decline, supported by a labor report showing 139,000 new jobs created in May, surpassing the expected 125,000. The WSJ Dollar Index rose by 0.4% to 95.59, driving declines in the euro and pound, which closed at $1.1388 and $1.3528, respectively. Stable unemployment at 4.2% and rising wages reduce expectations of near-term Fed rate cuts, according to Wealth Club.
Gold retreated by 0.8% to $3,322.70 per ounce, affected by outflows from ETFs, which offset safe-haven demand. According to the World Gold Council, the month was “virtually flat,” reflecting a tension between tariff uncertainty and institutional investment withdrawal. Nevertheless, the metal recorded a weekly gain of 1%, partly supported by diplomatic signals between Trump and Xi, who spoke to restart negotiations.
Crude oil reached weekly highs due to a drop in active platforms and trade optimism. Oil surged strongly, marking its second consecutive week of gains, with WTI closing at $64.58 (+6.2%) and Brent at $66.47 (+5.9%). The decline in active U.S. platforms, which fell by 9 to 442, fuels perceptions of lower future supply, according to Baker Hughes. Additionally, dialogue between the U.S. and China generated optimism about a potential trade breakthrough, while seasonal demand supports prices.
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