Trump’s recent easing of hard‑line trade warnings toward China has helped calm markets, and investors are taking a breather after weeks of volatility.
U.S. equity analysts reported that trading volumes dipped slightly on Friday, showing a sentiment shift that has steadied after the former president’s more measured tone on the trade dispute.
Even as the heat over U.S.–China trade tensions has simmered, another headline‑making story was unfolding on the commodity market: gold reached a new record high, trading above $2,000 per ounce for the first time since 2021. The record surge is a nod to investors’ risk‑off stance and the still‑firm U.S. dollar’s pull on risk assets.
“When a figure like Trump moderates the rhetoric, it signals to the markets that the aggressive push toward China may be taking a back seat for now,” said Anna Li, a senior equity strategist at Global Markets. “That comfort is reflected in how investors looked at the equity indices this week.”
The 10‑year Treasury yield slid to its lowest levels in the past month, showing that bond traders were also taking cues from the softer trade tone. Meanwhile, the U.S. dollar index eased slightly amid concerns that a softer China stance could dampen the dollar’s momentum.
Gold’s record climb came as key financial data came out. The U.S. retail sales report showed a better-than‑expected increase in consumer spending, which, combined with the easing trade rhetoric, signaled stronger economic prospects, driving investors toward safe‑haven assets. The Reserve Bank of Australia also suggested a cautious view on interest rates, which further buoyed gold prices.
“This is a classic shift from fiscal to commodity investment,” explained David Thompson, a commodities analyst. “When markets feel less pressure from trade wars, they start looking at long‑term risk‑free assets like gold.”
For U.S. traders, the broader implications are clear. The easing of Trump’s trade rhetoric offers a moment of stability as the U.S. continues to navigate its trade relations with China. Simultaneously, the record highs in gold serve as a reminder that investors still keep a hedge in a volatile environment.
Whether the calm lasts remains to be seen, but for now the market’s tone feels steadier, and gold’s rally suggests that investors are still hedging against uncertainties that linger in global trade dynamics.
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