US dollar dropped below 100; inflation and risk aversion clash at 5000.

On Monday, the US dollar index fluctuated and fell, failing to stay above the 100 mark, ultimately closing down 0.71% at 99.81; The benchmark 10-year Treasury yield closed at 4.224%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.686%. On Monday, spot gold briefly fell below the psychological barrier of $5000, hitting a low of $4967.44 per ounce during trading and ultimately closing down 0.3% at $5006.19. On the surface, it may seem like a flash crash in gold prices, but behind it lies the classic game of inflation concerns overshadowing traditional safe haven demand. Although the US dollar has fallen from a 10 month high, the "stagflation ghost" caused by high oil prices is sharply narrowing the path for the Federal Reserve to cut interest rates, and the opportunity cost of gold as a non interest bearing asset is greatly increased. Amidst the raging flames of war in the Middle East, market attention has begun to focus on the Federal Reserve's interest rate decision. Due to the passage of some ships through the crucial Strait of Hormuz and the intervention of US Treasury Secretary Vicente to calm the market, crude oil opened high and fell low, accelerating its decline ahead of the US market. WTI crude oil accelerated its decline during the European trading session and fell to the $100 mark. At one point, it hit a intraday low of $92.98, and ultimately closed down 5.13% at $94.20 per barrel; Brent crude oil ultimately closed down 3.26% at $97.61 per barrel.