Gold Hits New High as Trade Tensions Fuel Demand. Here's What Happened
Gold broke records again as investors flocked to the safe-haven asset. Find out what caused this surge in our analysis below.
* Events. Gold grew above $4,230 per ounce, driven by safe-haven demand and expectations of U.S. rate cuts. The Federal Reserve's cautious stance, alongside rising geopolitical tensions, added to market uncertainty.
* Background. U.S.-China trade tensions, including rare earth export restrictions, have pressured the dollar and made gold more attractive. The ongoing U.S. government shutdown also contributes to investors' concerns.
* Possible outcome. Traders expect a 0.25% rate cut in October and another in December. If the Fed cuts rates as expected and geopolitical tensions persist, gold could continue to rise as a safe-haven asset.
Monitor the Federal Reserve's upcoming decisions and any U.S.-China developments. Given the current uncertainty, gold could remain a strong option, but consider managing risk as market conditions evolve.
EUR/USD hit a one-week high as trade tensions between the U.S. and China started easing. Could this positive movement continue? Explore the details in our breakdown below.
* Events. The euro rose 0.14% to $1.1664, boosted by developments in the ongoing U.S.-China trade dispute. While there are hopeful signs of calming tensions, the threat of further escalation remains.
* Background. The U.S. criticised China's expansion of rare earth export controls, calling it a threat to global supply chains. Meanwhile, China defended its actions as a response to U.S. measures.
* Possible outcome. There are hopes for easing tensions, with the possibility of an extended tariff reprieve and a meeting between Presidents Trump and Xi Jinping later this month.
Watch for updates on U.S.-China trade talks and any changes to tariff policies. The euro could remain volatile, so be prepared to adjust strategies.
The NASDAQ-100 dropped to 24,500 before recovering to 24,800. What has caused this movement? Find out in our breakdown.
* Events. The NASDAQ-100 dropped to 24,500 before recovering to 24,800. The movement was driven by rising tensions between the U.S. and China as President Trump announced new tariffs and export controls.
* Background. The decline occurred after Trump said China was 'becoming extremely hostile' due to restrictions on rare earth metal exports. The ongoing U.S. government shutdown and resulting economic data gaps also keep investors anxious.
* Possible outcome. Trump announced 100% tariffs on top of existing ones, starting on 1 November. Even though tensions could still ease, the NASDAQ-100 may experience volatility as traders await updates.
Stay alert to news about the shutdown and U.S.-China trade talks. Volatility will likely continue, so consider using risk management strategies.