Dollar Rebounds as Precious Metals Tumble

The US dollar concluded its most substantial two-day rally in approximately ten months, appreciating significantly against its major peers. This surge followed the release of unexpectedly robust US manufacturing data, which contrasted with a notable slump in precious metals prices. The Bloomberg dollar index advanced about 1.2% over the two-day period, marking the largest gain since April.

This rebound from near a four-year low may have surprised some investors, particularly given that betting against the dollar was a prevalent macro trade as recently as last month. Previously, market sentiment was influenced by President Trump's actions, including threats to acquire Greenland and his apparent acceptance of the currency's decline, fueling discussions about its long-term trajectory.