“The Rise of the Dollar: Gold Loses Its Shine as Safe Haven”

It is clear that the coming days will be the days of the dollar, and it is clear that gold has begun to lose its luster and lose the title of the most important safe haven in the world.. It is also clear that the coming days will witness developments and surprises that no one counts on?

The dollar is at a high level

The US dollar rose in Europe yesterday, Thursday, and reached its highest level in two months, amid growing fears that the United States will default on its foreign obligations, with Congress insisting on refusing to raise the debt ceiling.
The dollar index scored nearly 104 points against a basket of foreign currencies, up 0.13%. Slightly below the overnight top of 104.05, which is its highest level since last March.
The safe-haven status of the dollar has benefited from the lack of progress in talks to raise the US government’s debt ceiling of $31.4 trillion, with an early June deadline set by Treasury Secretary Janet Yellen for her department to run out of money.

Pay off American debt

Uncertainty in the ability of the United States to pay its obligations led the rating agency Fitch to place the value of America on the “AAA” rating under watch for a possible downgrade, and this increases the tension in the global markets.
The credit agency said in a report that Fitch still expects a solution to the debt limit before the deadline.

strengthening the dollar

This year, the dollar was strengthened by a more hawkish view of the Federal Reserve’s monetary policy measures, and the US economy has proven resilient in the face of strong tightening so far.
Minutes from the Fed’s last meeting, released on Wednesday, reveal that officials are divided on whether further rate hikes will be necessary to bring down inflation, but the labor market and price pressures have all proven to be more resilient than expected after the May meeting.