Gold prices have soared to new heights as investors seek safe havens amidst ongoing uncertainty surrounding President Donald Trump's tariffs and their potential impact on global economic growth and geopolitical stability. On Friday, gold surged to a record high, exceeding $3,000 per troy ounce. Meanwhile, US stocks experienced a rally, with the Dow Jones Industrial Average opening higher and climbing 580 points, or 1.42%, as investors attempted to recover from a challenging week.
Despite Friday's rally, the Dow remained down 3.2% for the week as of midday. The blue-chip index is on track for its worst week since March 2023. Investors have been grappling with market volatility driven by fears over the economic implications of Trump's tariffs and mounting geopolitical tensions.
The sentiment in the markets has been largely pessimistic, with the University of Michigan's consumer sentiment survey revealing a significant drop. The preliminary reading for this month fell to 57.9, a stark decline from last month's 64.7 and the lowest level seen since November 2022. This 11% decrease reflects growing concerns among consumers regarding the current economic climate.
"Extreme fear" has been the sentiment driving markets since the end of February.
Source: CNN's Fear and Greed Index
President Trump's tariffs have roiled markets throughout the month, contributing to the ongoing uncertainty. The three major indexes are poised to close the week in negative territory, despite Friday's efforts to stage a rebound.
"Russia’s rejection of the US-proposed 30-day ceasefire in Ukraine has reignited geopolitical instability."
Source: Viktoria Kuszak, a research analyst at Sucden Financial