Gold has hit a historic milestone, climbing above $3,500 per ounce for the first time ever. The precious metal is now up 43% year-over-year, outpacing most major stock indexes by more than threefold, according to Bloomberg.

Since 2022, gold has been on a steady rise and is now trading at double its price from three years ago. Analysts attribute this rally to a combination of growing government deficit spending, persistent inflation, and a softening U.S. labor market.

U.S. Futures Edge Higher After Volatile Session

On Thursday evening, U.S. stock index futures ticked upward. The Dow Jones futures rose by 82 points (+0.2%), while S&P 500 and Nasdaq 100 futures each gained 0.2%.

This came after a volatile trading day, where the Dow fell 224 points (-0.5%), the S&P 500 dipped 0.08%, and the Nasdaq Composite rose 0.4%. During the session, the Dow swung from a high of +305 points to a low of -394 points.

Tariffs Shake Markets, Gold Benefits from Uncertainty

President Donald Trump’s reciprocal tariffs officially took effect at midnight. The highest duties were imposed on Syria (41%), Laos, and Myanmar (40%).

Markets received a boost earlier in the day after Trump confirmed that his 100% tariff on imported semiconductor chips would exempt companies building factories in the U.S.

Dollar Rises as Fed Leadership Speculation Builds

The U.S. dollar strengthened following a Bloomberg report stating that Fed Governor Christopher Waller is the frontrunner to be nominated as the next Federal Reserve Chair under a Trump administration.

Waller has already met with Trump’s team but not the former president directly. Meanwhile, Trump officially nominated Stephen Miran, current Chair of the Council of Economic Advisers, to the Federal Reserve Board, replacing Adriana Kugler, who resigned last week. Miran will serve until January, completing the remainder of her term.

The U.S. Dollar Index (DXY) climbed 0.18% to 98.36, the dollar rose 0.1% to 147.49 yen, and the British pound strengthened by 0.41% to $1.341. This came after more Bank of England policymakers than expected voted to hold interest rates steady, despite earlier forecasts of a 25-basis-point cut.

Meanwhile, the euro slipped 0.27% to $1.1627, down from an earlier high of $1.1698, as hopes grew for progress in Ukraine peace talks. Trump’s envoy Steve Witkoff met with Vladimir Putin, and a direct meeting between the two leaders is expected in the coming days.

The dollar also gained 0.16% against the Swiss franc, reaching 0.808, after Swiss President Karin Keller-Sutter returned from Washington without securing a deal to prevent a looming 39% U.S. tariff on Swiss exports. She stated that negotiations with U.S. officials would continue.

Bitcoin Rallies, Risk Appetite Returns

On the crypto front, Bitcoin gained 1.06%, trading around $116,348. Investor sentiment appears to be improving across markets, with forecasts pointing to a 1.6% gain for the S&P 500, 0.9% for the Dow, and 2.9% for the Nasdaq by week’s end.

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