Trade Truce Between Washington and Beijing Fuels Market Appetite and Pressures Gold

Global markets kicked off the week reacting to a temporary trade agreement between the United States and China,
which includes reducing mutual tariffs to 10% for a period of 90 days.
This development directly impacted investor sentiment and triggered broad movements in financial markets.

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Markets

Markets

Commodities Market

Gold prices dropped sharply as investors moved away from safe-haven assets,
while the U.S. Dollar Index rose by 1.14% to 101.48 points, hitting its highest level since mid-April.
June gold futures fell by 3.29% to $3,234.1 per ounce, while the spot price dropped by 2.85% to $3,230.23.
Silver and platinum prices also declined under similar pressures.
This steep decline in precious metal prices followed a surge in the dollar and an easing of fears surrounding trade escalation,
boosting investors’ risk appetite and pushing them toward higher-yielding assets such as stocks and currencies.

Currencies

The U.S. dollar climbed to its highest level since April 10 against a basket of currencies, as the euro,
pound sterling, and Japanese yen weakened.
The recent tariff agreement supported this rally despite the continuation of 20% tariffs on Chinese imports related to fentanyl.

Cryptocurrencies

Movements were mixed. Bitcoin dipped slightly to $104,374, while Ethereum rose by 1.7% and Ripple by 1.9%.
This came amid cautious optimism regarding continued accommodative monetary policies and the potential for future U.S. interest rate cuts,
which enhance the appeal of digital assets.

Wall Street

U.S. stock futures responded strongly, with Dow Jones-linked contracts rising by 2%,
the S&P 500 by 2.55%, and the Nasdaq 100 by 3.4%.
The “Magnificent Seven” ETF also jumped by 4.8%, driven by gains in Tesla and Amazon shares.
Investor focus now shifts to the release of U.S. inflation data this week,
which may determine the Federal Reserve’s next policy steps amid growing expectations of
interest rate cuts if economic indicators continue to show weakness.

Trade Truce Between Washington and Beijing Fuels Market Appetite

Trade Truce Between Washington

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