Market Reactions Amid Trump's Taiwan Stance and Gold's Surge

Gold surged to a record high as U.S. presidential candidate Donald Trump's comments on Taiwan caused market turbulence. While chip stocks tumbled, the British pound rose due to stable inflation. European and U.S. futures dropped, and Taiwan's TSMC lost significant market value. Global financial fluctuations continue as investors await further political developments.

Gold surged to a record high on Wednesday, while bond markets rallied and chip stocks plummeted following U.S. presidential candidate Donald Trump's tepid remarks about defending Taiwan. The British pound also saw gains, rising to a year-on-year rate of 2% in June, surpassing forecasts.

On European fronts, Stoxx share index futures fell by 0.2%, and S&P 500 futures saw a 0.5% decline after setting a record high in the previous session. Taiwan's TSMC fell 3%, shedding nearly $30 billion of its market value.

Trump's statements to Bloomberg Businessweek questioned U.S. support for Taiwan, causing market unease. The Taiwan dollar dipped to a two-week low as global markets reacted to the geopolitical shifts.

Fed futures have priced in a rate cut for September, boosting gold to a record high of $2,482 per ounce. The Japanese yen also strengthened as U.S. yields dropped. China's yuan steadied amid ongoing leadership discussions in Beijing.

Oil prices remained mixed, with Brent crude futures slightly rising by 0.4% and U.S. crude futures inching up by 0.5%. As the global economic landscape continues to shift, market watchers are keenly focused on political developments.

(With inputs from agencies.)