DOLLAR ROUT DEEPENS; GOLD CHARGES TOWARD $3,500, OR EVEN $4,000?
DOLLAR ROUT DEEPENS; GOLD CHARGES TOWARD $3,500, OR EVEN $4,000?
The U.S. dollar experienced a significant decline, while gold prices surged to new record highs amid escalating political tensions and economic uncertainties.
The U.S. dollar continued its downward trajectory, influenced by heightened political tensions and concerns over the Federal Reserve's independence.
President Donald Trump's recent criticisms of Fed Chair Jerome Powell have unsettled markets, leading to a 9% decline in the dollar this year and nearly 6% in April alone.
Gold prices reached an all-time high of $3,500 per ounce, driven by increased demand for safe-haven assets amid economic and political uncertainties.
Spot gold rose 2.2% to $3,493.41, while U.S. gold futures climbed 2.3% to $3,502.40.
Major U.S. stock indexes ended the session deep in the red, with the S&P 500 falling over 12% and the Nasdaq nearly 18%, nearing bear market territory.
This downturn is attributed to escalating trade tensions and investor concerns over the stability of U.S. financial markets.
The yield on the 10-year U.S. Treasury note surged back above 4.4%, reflecting increased investor concerns over inflation and the potential for higher borrowing costs.
This rise in yields has added to the volatility in financial markets.
