Dollar's Safe-Haven Status Remains Intact

Core Viewpoint - The dollar continues to be a primary safe-haven asset alongside gold, despite some challenges to the Federal Reserve's independence impacting its appeal [1][2]. Group 1: Dollar as a Safe-Haven Asset - The recent increase in gold prices raises questions about the dollar's effectiveness as a safe haven [2]. - The depth of U.S. capital markets suggests that investors are unlikely to abandon the dollar even if geopolitical risks escalate [2]. - The dollar's "hard power" and its dominance, supported by U.S. security guarantees, enhance its safe-haven status [2]. Group 2: Market Performance - The DXY dollar index increased by 0.2% to 98.812, following a peak of 98.989, which was the highest in nearly two months [3].