Gold Hits Record High, Yen Surges as Markets Seek Safe Havens

Image Credit: Reuters

Investor sentiment remains cautious, weighed down by a series of tariff headlines and rising geopolitical tensions. As a result, Asian stocks fell, gold surged to a record high, and the yen hit its strongest level in over two months. European markets are expected to follow suit with a cautious tone, after the pan-European STOXX 600 index saw its biggest drop in two months, losing nearly 1% in the previous session.

While European stocks have performed strongly in 2025, with a double-digit rise outpacing U.S. equities, the latest developments have raised concerns. U.S. President Donald Trump’s remarks against Ukrainian President Volodymyr Zelenskiy, calling him a "dictator" and warning of the risk of losing the country, have heightened geopolitical worries, further dampening risk appetite.

The yen, buoyed by expectations of potential rate hikes from the Bank of Japan, was the standout currency, reaching its highest level since December at 150.48 per dollar. Meanwhile, gold continued its safe-haven rally, hitting another all-time high, marking its ninth record this year and adding to its impressive 27% rise in 2024. Analysts at Citi and Goldman Sachs have raised their gold price targets, with predictions that it could surpass $3,000, driven by strong central bank demand.

Market attention will also turn to earnings reports from automakers Mercedes-Benz and Renault, as investors look for updates amid tariff concerns.

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author