US dollar weakens as gold and silver soar – business live

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Rolling coverage of the latest economic and financial news

  • US dollar hits four-month high
  • Gold highest since 2011; Silver highest since 2014
  • Euro rallies after Covid-19 recovery deal

8.38am BST

The price of gold hit $1,865 per ounce for the first time since September 2011 this morning.

“The spectre of these stimulus packages has pushed investors back into non-yielding assets like gold,.

“The likelihood of interest rates remaining low for the foreseeable future and the weaker U.S. dollar have really boosted investor appetite.”

8.12am BST

Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.

The US dollar is taking a pummelling, sending commodity prices rattling higher.

Related: Trump admits pandemic will ‘get worse’ at first Covid-19 briefing in months

Europe’s new stimulus program moved the foundations in foreign exchange markets overnight. The EUR/USD surged to its highest levels since January 2019, to push through the 1.15-handle in overnight trade.

The stronger EUR brought about broad-based weakness in the US Dollar, with the US Dollar Index threatening to retest the lows it recorded in late February.

The overnight session was notable for the renewed energy seen in the great US Dollar rotation trade. The Dollar fell almost everywhere as the tailwinds from the EU pandemic package, and the inspiring news on the Covid-19 vaccine front turned into hurricane-force winds.

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