Gold fell nearly 2% to around $5,130 per ounce as a rotation into US Treasuries overshadowed traditional safe-haven demand. The 10-year Treasury yield slipped below 4.05% amid concerns that advances in artificial intelligence could disrupt the software and payments sectors. However, gold’s recent rally lost momentum as the yield curve flattened and markets scaled back expectations for a Federal Reserve rate cut.
Market volatility remains elevated after a 10% global tariff took effect today, with the White House preparing a formal order to raise that rate to 15%. This trade emergency has pushed European and Asian economies to consider suspending existing agreements with the US, even as nuclear talks with Iran are set to resume on Thursday.
Despite mounting geopolitical tensions and intensifying trade frictions, investors are currently favoring fixed income as they await Nvidia’s earnings and assess potential changes in the broader financial infrastructure. Gold remains caught between safe-haven inflows on one side and the headwinds from a stronger US dollar on the other.
