Dollar pulls back after near two-week high

May 14, 2026 (MLN): The U.S. dollar edged lower on Thursday, retreating modestly after climbing to its strongest level in nearly two weeks in the prior session, fueled by wholesale inflation data that came in hotter than analysts had anticipated.

The DXY dollar index slipped 0.1%, trading at 98.483, having touched an intraday peak of 98.598 on Wednesday before losing some of its momentum, according to Dow Jones Newswires.

The slight pullback in the greenback offered support to commodity markets, with gold remaining stable on Thursday as the softening dollar made the precious metal more attractive to international buyers.

The relationship between the dollar and gold has long been an inverse one, and Thursday's modest currency retreat provided enough breathing room to keep bullion prices steady amid an otherwise cautious trading environment.

Market participants are now turning their attention to a high-stakes diplomatic meeting between U.S. President Donald Trump and Chinese President Xi Jinping, with trade relations and the ongoing conflict involving Iran expected to dominate the agenda.

 The summit has drawn significant interest from investors, who are watching closely for any signals that could reshape the global economic and geopolitical landscape.

The tone heading into the talks appeared cautiously optimistic, with both leaders offering conciliatory remarks ahead of the discussions.

President Trump expressed confidence that ties between the world's two largest economies were heading in a positive direction, suggesting the bilateral relationship could soon be "better than ever before." His Chinese counterpart echoed a similar sentiment, emphasizing that the two nations ought to function as "partners, not rivals".

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