Global Markets Tremble as Gold Prices Soar Amid Trade War Fears

Global equity markets fell while gold prices surged, driven by concerns over potential trade wars sparked by U.S. President Donald Trump's policies. The financial markets experienced turbulence, with Trump's latest tariff warnings exacerbating fears. Gold reached new highs, reflecting safe-haven demand amid uncertain economic conditions.

Global equity markets witnessed a downturn while gold prices soared on Thursday, marking one month since U.S. President Donald Trump returned to the White House and the five-year anniversary of COVID-19's impact on world markets.

Concerns over a potential global trade war, sparked by Trump's tariff threats, pushed gold close to $3,000 per ounce. The safe-haven demand for the precious metal notched its tenth record high this year. Meanwhile, the dollar remained subdued as the yen strengthened on speculation of more interest rate hikes by the Bank of Japan.

Trump's tariff threats, including targeting pharmaceuticals, semiconductor chips, and car imports, have heightened fears of a trade war, causing Wall Street indexes to decline. The S&P 500 hit record highs earlier in the week amid discussions about inflation and Trump's policies. In Europe, stocks fell as Germany braces for a snap election. In currency markets, significant movements were seen with a rise in the yen against the dollar.