Dollar, yields rose; gold dropped $30 on hot CPI

On Monday, the US dollar index maintained a narrow range of fluctuations and successfully reached the 98 level in the late trading session, ultimately closing up 0.24% at 98.071. The yield of US Treasury bonds continues to rise, with the benchmark 10-year bond yield closing at 4.439% and the 2-year bond yield closing at 3.919%. Due to Trump's announcement of tariffs on the European Union on August 1st, spot gold prices surged to $3374.78 per ounce in early trading on Monday, setting a three week high since June 23rd and making bullish investors ecstatic. However, the EU did not immediately retaliate forcefully and stated that there is still room for negotiation. Market concerns have cooled down, and the US dollar index has rebounded strongly to a three week high, while US bond yields have also risen to a one month high. Gold prices have fluctuated and fallen, ultimately closing at $3343.31 per ounce, a daily decline of about 0.4%. With the reignition of the trade war casting a shadow over the demand outlook in the oil market, international oil prices have plummeted. WTI crude oil fell continuously in the US market, ultimately closing down 2.56% at $65.86 per barrel; Brent crude oil closed down 2.16% at $68.53 per barrel.