Markets React as Gold Reaches Record High Amid Global Interest Rate Speculations

Gold prices hit a record high on Wednesday, while bonds rallied in anticipation of falling global interest rates. Meanwhile, Taiwan's stocks dipped following Donald Trump's comments on U.S. defense support. U.S. Treasury yields remain steady, and global markets show mixed reactions, with notable impacts on currencies and commodity prices.

Gold prices soared to a record high on Wednesday as global markets braced for potential interest rate cuts. Meanwhile, Taiwanese stocks fell following U.S. presidential candidate Donald Trump's uncertain stance on defending the island.

The S&P 500 reached new peaks overnight, and futures steadied in Asia. Taiwan Semiconductor Manufacturing Company (TSMC) shares dropped 2%, erasing $16 billion in market value, after Trump's Bloomberg Businessweek interview suggested Taiwan should pay for U.S. protection.

In response, the Taiwan dollar slid to a two-week low, while China's yuan remained stable at 7.2676 per dollar. Analyst Brent Donnelly hinted at a bullish outlook for USD, driven by expected tariffs and a higher budget deficit under Trump's potential presidency.