Gold Surges Past $3,200 Amid Dollar Selloff

Gold soared above $3,200 per ounce, hitting another record high as investors fled to safe havens amid rising economic uncertainty. The dollar weakened sharply, with the Swiss franc reaching a 10-year high and the yen its strongest in six months. US bond yields spiked, with the 10-year yield on track for its biggest weekly rise since 2001, as the US-China trade war rattled global markets.

Equities

The FTSE 100 rose 3% on Thursday, its biggest daily gain since March 2022, following US President Donald Trump’s announcement of a temporary suspension of tariffs on goods from several countries. The FTSE 250 climbed 3.5%, marking its strongest session since July 2023. Every FTSE 350 sub-sector ended the day higher, with personal goods stocks up 6%.

Precious metal miners added 5.3%, while industrial miners rose 3.7% as commodity prices bounced back. Bullion rose more than 1%, supported by continued safe-haven buying amid the ongoing US-China trade dispute. Copper and other base metals also rebounded.

Tesco shares fell 6.1% after the company warned that annual profit could decline. Britain’s largest food retailer said it had set aside funds to deal with increased competitive pressure in the market, which it expects to intensify in the months ahead. The announcement added to investor concerns despite the broader rally.

In the US, markets reversed the previous session’s gains. The Dow Jones fell 2.5%, shedding 1,014 points to close at 39,593. The S&P 500 dropped 3.5%, or 189 points, finishing at 5,268, while the Nasdaq fell 4.3% to 16,387. All major indices had surged the day before—following Trump’s 90-day tariff reprieve—with the S&P 500 posting a 9.5% rise and the Nasdaq jumping 12.2%, its second-biggest gain on record. However, sentiment turned sharply as concerns over the trade war with China resurfaced. The S&P 500 remains more than 7% below levels seen before the latest round of tariffs.

Tech stocks led the decline, with each of the so-called Magnificent Seven down between 2.3% and 7.3%. Among individual names, CarMax fell 17% after reporting fourth-quarter profit that missed analysts’ estimates. Big banks including JPMorgan Chase, Morgan Stanley, and Wells Fargo are due to report results on Friday, marking the start of the first-quarter earnings season.

Forex & Commodities

The US dollar weakened sharply, falling to its lowest level against the Swiss franc since 2015. The greenback dropped as much as 1.2% to 0.8140 francs, extending a near 4% fall from the previous session. It also lost 1.1% against the yen, touching 142.88, its weakest level since September. The euro gained 1.7% to reach $1.1385, its highest level in over three years. The dollar index fell more than 1%, briefly slipping below the 100 mark for the first time since July 2023. The yuan initially strengthened after recent gains but later eased to 7.3232 in offshore trading. The People’s Bank of China raised the yuan’s official midpoint for the first time in seven days, reflecting the broad selloff in the dollar.

Gold surged nearly 3% to a record $3,171.49 per ounce before easing to settle at $3,160.82 in spot trading. US gold futures closed at $3,177.50, up 3.2%. Traders continued to favour gold after President Trump increased tariffs on Chinese goods to 125%, despite suspending higher duties on other countries for 90 days. Inflation data released on Thursday showed a surprise 0.1% fall in March US consumer prices, and traders are now pricing in a full percentage point of rate cuts from the Federal Reserve by year-end. Silver, platinum, and palladium all edged lower on the day.

Oil prices rebounded modestly with Brent crude rising 1.4% to $64.23 and WTI climbing 1.5% to $60.95. However, both benchmarks remain on track for weekly losses—Brent down 2.1% and WTI lower by 1.8%. The US Energy Information Administration lowered global growth and demand forecasts and warned tariffs could weigh further on prices.