**********Trump announced a 25% tariff on all steel and aluminum imports, and the market reacted quickly,goldThe price has broken through a historical high,dollarIt also rose accordingly. The global trade uncertainty caused by this policy has prompted investors to turn tosafe-haven assetsGold and the US dollar have become the main beneficiaries.
Gold prices hit a historic high
Trump's tariff decision directly triggered market concerns about risk, and investors flocked to safe haven assets such as gold. On Tuesday, the price of gold briefly broke through $2930 per ounce, setting a new historical high. The market's concerns about future trade conflicts have made gold the preferred safe haven for funds.
The rise in gold reflects strong market expectations for the potential global economic impact of Trump's tariff policies. As concerns about trade conflicts intensify, gold is seen as an effective means of resisting inflation and currency depreciation, especially in the context of increasing global uncertainty.
Strong performance of the US dollar
Contrary to gold, the US dollar also performed strongly after Trump announced tariff policies. The US dollar index continued to rise on Monday, as investors seek safe assets and the US dollar is seen as a safe haven currency, especially against the backdrop of the Federal Reserve's possible more hawkish monetary policy.
Trump's tariff policies may exacerbate inflationary pressures, especially with rising steel and aluminum prices. As a globally recognized trading and reserve currency, the value of the US dollar benefits from trust in the stability of the US economy and the policies of the Federal Reserve.
Market response: Risk aversion dominates
In the uncertain global trade situation, the strong performance of gold and the US dollar is undoubtedly a direct reflection of market risk aversion. Investors are uncertain about the long-term economic impact that Trump's tariff policies may cause, so they choose to transfer their funds to safer assets such as gold and the US dollar.
Hartmut Issel, Head of Equity and Credit at UBS Wealth Management Asia Pacific, stated:
Faced with uncertain policies, the rise of gold and the US dollar is a reflection of the market's demand for safe haven assets. In this environment, investors seek stable returns, and gold and the US dollar are undoubtedly the most direct choices
Edit viewpoint
Although Trump's tariff policy mainly targets the steel and aluminum industry, the market volatility it has caused has quickly expanded to other areas, especially with the increasing demand for safe haven assets. Gold and the US dollar, as traditional safe haven tools, may continue to benefit from the rising trade sentiment in the future.
