Dollar Falls, Gold Hits Two-Week High After Trump Move

The dollar started softer today after President Donald Trump said he was firing Federal Reserve Governor Lisa Cook, pushing gold up to $3,374 per ounce, its highest level since 11 August. US Treasuries showed mixed moves, with the 10-year yield rising to 4.306% while the two-year yield eased to 3.717%. Oil prices edged lower, with Brent at $68.48 a barrel and West Texas Intermediate at $64.47, after both benchmarks hit two-week highs on Monday following attacks on Russian energy facilities.

Equities

Keurig Dr Pepper fell sharply on Monday, closing 11.5% lower after announcing it would acquire Dutch coffee group JDE Peet’s in an $18.4 billion cash deal. The scale of the purchase unsettled investors, who marked the stock down on concerns about funding and integration risks.

Furniture retailers also came under pressure. RH and Wayfair each closed more than 5% lower after President Donald Trump said late on Friday that his administration would launch an inquiry into furniture import tariffs.

Nvidia gained 1% on Monday as investors looked ahead to its quarterly results due on Wednesday. Intel fell 1% after Trump confirmed that the US government would take a stake in the company and said similar agreements could follow with other large technology businesses.

Wall Street retreated after last week’s strong rally. The S&P 500 fell 0.43% to close at 6,439.32 points. The Dow Jones Industrial Average dropped 0.77% to 45,282.47, while the Nasdaq slipped 0.22% to 21,449.29. Trading volumes were relatively light, with 14.2 billion shares changing hands compared with a 20-session average of 17.1 billion.

Consumer staples declined 1.62%, while health care fell 1.44%. Declining stocks outnumbered risers by four to one within the index. On Friday, the Dow had closed at a record high for the first time since December 2024, with the S&P 500 posting its strongest daily gain since May.

Forex & Commodities

The dollar weakened on Tuesday after President Donald Trump announced he was removing Federal Reserve Governor Lisa Cook, raising questions over the central bank’s independence. The euro rose to $1.163, while the yen traded at 147.8 per dollar, having earlier strengthened. The dollar index slipped after a sharp rise on Monday.

Gold extended recent gains, with spot prices rising to $3,374 per ounce after touching $3,386, the highest since 11 August. Holdings in SPDR Gold Trust, the largest gold-backed exchange-traded fund, increased to 958.5 metric tonnes on Monday from 956.8 tonnes on Friday. Silver rose to $38.71 per ounce, platinum slipped to $1,340, while palladium advanced to $1,094.

Oil prices eased on Tuesday following a sharp rally the day before. Brent crude fell to $68.48 a barrel and West Texas Intermediate slipped to $64.47. Both benchmarks had reached two-week highs on Monday as attacks on Russian energy facilities disrupted supplies and raised the risk of further sanctions.