The US Dollar weakened against both gold and the Canadian Dollar on Friday, driven by fading expectations of a US Federal Reserve interest rate hike. According to FX Street, gold recovered from a slight dip earlier in the Asian session to trade in the $4,109-$4,108 range.
FX Street also reported that the US Dollar has been under persistent selling pressure for the third consecutive day following the release of Wednesday’s less hawkish Federal Open Market Committee (FOMC) minutes. This sentiment weighed on the USD/CAD currency pair, which lost momentum and slipped to near 1.4145 during the early European session on Friday.
For Japanese investors, the softer US Dollar and rising gold prices could influence portfolio allocations, especially amid ongoing concerns over global monetary policy shifts and safe-haven demand.