Markets Surge Amid Trade Policy Uncertainty

Gold hit record highs and the dollar remained strong as investors navigated shifts in U.S. trade policy and awaited remarks from Fed Chair Jerome Powell. Market responses included gains in Hong Kong shares, U.S. steelmakers, and energy and tech sectors, amid ongoing tariff discussions involving the U.S., Canada, Mexico, and China.

Gold reached an unprecedented peak and the dollar remained strong on Tuesday as investors maneuvered through shifts in U.S. trade policy while anticipating insights from Federal Reserve Chair Jerome Powell regarding tariffs and inflation.

Oil prices maintained gains following a significant overnight increase. Hong Kong's Hang Seng Index surged over 12% in a month, driven by the fluctuating tariff decisions from the Trump administration, which have affected trade relations with Canada and Mexico, and impacted steel and aluminum imports - subsequently influencing U.S. steelmakers' shares positively.

Expectations for a trade agreement between the U.S. and China remain high, despite little progress. Currencies were affected with the Chinese yuan declining against the dollar. Meanwhile, U.S. stock markets closed higher, led by the energy and tech sectors, as earnings contributed to investor optimism.

(With inputs from agencies.)