The US dollar rose on Tuesday, while gold fell as risk aversion eased.

On Tuesday, the market's optimism towards a trade agreement boosted the US dollar, with the dollar index hitting a six-day high and ultimately closing up 0.36% at 98.95. The benchmark 10-year US Treasury yield ultimately closed at 3.974%, while the 2-year US Treasury yield, which is sensitive to the Federal Reserve's policy interest rate, closed at 3.463%. On October 21st, spot gold prices suffered a heavy fall, with a single-day drop of up to 5.3%, closing at $4,124 per ounce, which is not only a new low in nearly a week but also the largest single-day drop since August 2020. During the trading session, gold prices once hit a low of $4,083.15 per ounce, nearly $300 lower than the intraday high. Factors such as profit-taking by investors, weakening demand for safe-haven assets, and a rebound in the US dollar jointly triggered a significant drop in gold prices. Oil prices rose as the US planned to purchase 1 million barrels of crude oil to replenish the US Strategic Petroleum Reserve. WTI crude oil approached the $58 mark during the trading session and ultimately closed up 1.14% at $57.57 per barrel; Brent crude oil ultimately closed up 1.03% at $61.58 per barrel.