The EUR/USD currency pair was one of the big beneficiaries, rising by more than 1% on the day. At one point, it traded above the 1.1500 level for its highest close since early November 2021. Traders are responding to increasing fears of a looming US economic recession. Consequently, the euro’s value is skyrocketing against the US dollar.
This recent selling pressure on the US dollar has created a window for the euro to find its footing. It is no wonder analysts emphasize how the US economic outlook has stoked these fears leading to this reversal. Moreover, recent attacks on the Federal Reserve’s independence have alarmed many. Those fears were heightened after President Trump once again took to Twitter to attack Fed Chair Jerome Powell. This uncertainty served to compound the tense situation already occurring within financial markets.
Investors fleeing uncertainty in the US dollar have driven gold prices on a parallel upward path. In early Asian and European trading, gold soared nearly 1.8% as gold continued its bullish streak. Over the last several weeks, the precious metal has reached 10 new all-time record highs. It goes even higher, seemingly defying gravity, solidifying an incredible uptrend for the fourth consecutive month.
Gold has now come up to retest a new critical psychological $3,400 level that has been turned into a major support. From the last bullish momentum, you can see that gold bulls are aiming for an audacious $3,500. That’s a big change from previous projections, which expected the milestone to be hit by the end of the year. This rise in gold prices is primarily driven by increased demand due to global economic uncertainty.