Donald Trump's tariff introduction has led to significant fluctuations in global stock markets, increased gold prices, and created a new wave of economic uncertainty.
Global Market Crash and Gold Surge
Global stock markets felt pressure following Trump's statement on 'reciprocal' tariffs. Wall Street stocks, including industrial and technological, fell as investors moved towards safe assets like gold. Gold reached $3,056 per ounce, reflecting investor panic.
Trump's Political Tariff Game
Trump has revived the topic of protectionist tariffs, causing a strong market reaction. His proposal for 'reciprocal' auto import tariffs hit Chinese and European markets hard, leading to regional index declines and a weakening yuan.
The Fed, Inflation, and Gold's Role
The Federal Reserve is frozen, awaiting new inflation data. Despite an expected 0.3% increase, rising gold prices amidst a weakening dollar highlight market concerns. The probability of a rate cut in June has been revised from 60% to 43%.
The return of tariffs under Trump's leadership leads to increased market anxiety, enhances gold's role as a safe haven, and increases pressure on the Fed amid a changing economic landscape.
