DXY : Weakening USD creates momentum for gold

The DXY index is currently trading around the 105.00 mark, recording a slight decrease during Monday's trading session.

The dollar remains supported by persistent inflation concerns, as Fed Chairman Jerome Powell has warned. However, the weaker-than-expected jobs report released last Friday showed signs that the US economy may be slowing and expectations that the Fed will cut interest rates in September are higher than ever. out, there is a potential risk of pushing the USD even lower.

The US economy is currently painting a rather complicated picture. On one hand, consumer demand remains strong and the labor market is stable. However, April employment data showed some signs of weakness, making investors worried about future economic growth.

However, Fed Chairman Jorome Powell's caution, highlighting trend instability and uncertain progress in controlling inflation, could help boost the USD if upcoming economic data shows signs of positive.