The US dollar rose against its peers on Thursday, extending its gains for the third day, and hit a 2-month high, after the US Federal Reserve hinted earlier policy tightening as inflation and growth improve. 

The dollar index rose 0.5% to the highest since last April 13 at 91.85 points, after opening at 91.42, and hit an intraday low at 91.30 points.

The index rose by 1% yesterday, in the largest daily gain since March 19, 2020, following the Fed meeting and a surge in the 10-year US Treasury bond yields.

The US Federal Reserve decided to hold the interest rate between zero and 0.25% unchanged on Wednesday, but hinted a rate hike in 2023.

The Fed was more bullish than expected before with its timeline for raising interest rates and forecasts for inflation and growth. 

The Fed expects gradual and solid recovery from Covid 19 pandemic this year, with goals proceeding towards inflation and employment marks faster than expected. 

June forecasts point to a 0.6% interest rate in 2023, meaning two rate hikes in 2023, with 13 members now expecting hikes in 2023 compared to 7 before. 

The Fed also raised inflation forecasts to 3.4% in 2021 from 2.4% in March, and raised growth forecasts to 7% this year from 6.5% in March.

Oil prices rose on Thursday, and resumed their rally after taking a pause yesterday due to profit-taking from multi-year highs, following a large drop in the US crude inventories.

US crude rose 0.8% to $72.22 a barrel, after opening at $71.67, and hit a low at $71.36, and Brent crude rose 0.9% to $74.44 a barrel, after opening at $73.78, and hit a low at $73.58.

The US crude lost 1.1% yesterday, on profit taking from a 3-yar high at $72.96, and Brent crude fell 0.5% after hitting the highest since April 2019 at $74.94.

Oil prices fell on Wednesday due to profit-taking and the US dollar's broad rally against a basket of currencies, after the Federal Reserve released positive projections.

The Energy Information Administration reported yesterday that the US crude inventories fell 7.4 million barrels during the past week, while analysts forecasts a drop by 2.1 million barrels.

The total commercial inventories fell to the lowest level since the week ending on February 19 at 466.6 million barrels, in a positive sign of the US demand levels.

While the US output rose by 200K barrels per day last week, with the total at the highest level since May 2020 at 11.2 million barrels per day.

Gold prices fell on Thursday, deepening losses losses for the fifth day, falling below the $1,800 barrier for the first time in 6 weeks, as the US dollar rallied against its peers after the US Federal Reserve hinted earlier policy tightening as inflation and growth improve. 

Gold prices fell 0.3% to the lowest since May 6 at $1,795.12 an ounce, after opening at $1,811.59, and a high at $1,825.22.

Gold lost 2.6% yesterday, and posted its fourth straight daily loss, and the largest since January 8, following the Federal Reserve's meeting.

The dollar index rose 0.4% on Thursday for the third straight session, marking a 2-month high at 91.75 as the greenback extends lead against a majority of rivals. 

The Fed was more bullish than expected before with its timeline for raising interest rates and forecasts for inflation and growth. 

The Fed expects gradual and solid recovery from Covid 19 pandemic this year, with goals proceeding towards inflation and employment marks faster than expected. 

June forecasts point to a 0.6% interest rate in 2023, meaning two rate hikes in 2023, with 13 members now expecting hikes in 2023 compared to 7 before. 

The Fed also raised inflation forecasts to 3.4% in 2021 from 2.4% in March, and raised growth forecasts to 7% this year from 6.5% in March.

Gold stocks at the SPDR ETF rose by 1.17 metric tonnes yesterday, with the total at the highest level since June 1st at 1,045.78 metric tonnes.

Euro fell in European trade against dollar for another session to two-month lows as haven demand increases on the greenback, amid expectations of earlier policy tightening in the US as inflation and growth improve. 

EUR/USD fell 0.5% to 1.1936, the lowest since April 13, after closing down 1.1% yesterday, the largest loss since March 2020 following the Federal Reserve's meeting. 

The dollar index rose 0.4% on Thursday for the third straight session, marking two-month highs at 91.75 as the greenback extends lead against a majority of rivals. 

The Fed was more bullish than expected before with its timeline for raising interest rates and forecasts for inflation and growth. 

The Fed expects gradual and solid recovery from Covid 19 pandemic this year, with goals proceeding towards inflation and employment marks faster than expected. 

June forecasts point to a 0.6% interest rate in 2023, meaning two rate hikes in 2023, with 13 members now expecting hikes in 2023 compared to 7 before. 

The Fed also raised inflation forecasts to 3.4% in 2021 from 2.4% in March, and raised growth forecasts to 7% this year from 6.5% in March.