"Because most ARMs only adjust once per year, the next rate reset could be a doozy if it encompasses 2 or 3 Fed hikes in the interim".
Investor scepticism over how much the U.S. Federal Reserve will be able to raise rates weighed on the dollar too, although with the exception of gold, the greenback's weakness failed to give a fillip to commodities, as is often the case.
Meanwhile, gold prices hit a two-week high yesterday as the greenback slumped.
The latest COT data recorded a significant decline in long, non-commercial gold positions for the second successive week with a drop to 106,038 contracts from 133,685 the previous week and this was the lowest net long position since early January.
World markets baulked on Monday at the G20's decision to drop a decade-old pledge to resist trade protectionism, with stocks, the dollar, oil and the price of many major sovereign bonds all sliding into the red.
Although Trump promised in early February to deliver a "phenomenal" tax plan within a few weeks, no such details have been released yet, with many investors now waiting for detailed budget plan expected in mid-May.
War of words after British PM says no to early Scottish referendum
A referendum announcement had been in the pipeline for months, and had little to do with the current state of Brexit negotiations. May said she was opposed to a second independence referendum while Brexit talks with Brussels were continuing.
Gold prices edged higher in U.S. trading on Friday with the dollar decline following a dip in the University of MI consumer confidence inflation expectations index the main catalyst for USA losses. This didn't happen, as the bank left rate expectations for rates going out to the end of next year flat; and this gives rise to the expectation for the Fed to continue being passive (dovish) as we're supposedly going into a rising rate environment. It last stood at 2.479 percent.
The euro ticked up to $1.0758, near Friday's six-week high of $1.07825, maintaining its gains made last week after a election defeat for Dutch far-right leader Geert Wilders, which eased broader fears of a populist drift in European politics.
Attention now turns to the French election, with the first presidential debate set to take place on Monday. The dollar didn't show much reaction, taking its cue instead from the moves in US yields. It has risen 2.0 percent since the Fed's policy meeting last week.
The pound, which had been up as much as a third of a per cent against the United States dollar in London morning trade, reversed course, falling as low as US$1.2336 following the statement, down 0.45 per cent on the day.
The South African rand has gained 4.0 percent since then to a near 1-1/2-year high while the Brazilian real rose 3.2 percent.