Global Market Turmoil as Trump Traders Weigh In
Global equity markets fell while gold prices surged on Thursday, with traders marking one month since U.S. President Donald Trump's returned to the White House and five years since COVID-19 first rocked world markets. Gold was nearing $3,000 per ounce on concerns Trump will unleash a global trade war, bullion notched its tenth record high this year, partly fueled by safe-haven demand amid the tariff threats. The dollar was subdued against major currencies while the yen stomped higher on bets of more Bank of Japan interest rate hikes.
- The escalating uncertainty surrounding Trump's economic policies is creating a perfect storm for market volatility, with investors struggling to predict which way assets will move next.
- Can investors and policymakers reconcile the need for trade liberalization with the potential risks of destabilizing global markets and exacerbating inflationary pressures?