The escalating tariff conflict between the U.S. and China unsettles the stock markets, weakens the dollar, and pushes gold to all-time highs

Uncertainty has become the main player in international markets, fueled by the ongoing tariff battle between the world’s two largest economies. And if there’s one thing investors shy away from, it’s uncertainty. The major global stock exchanges are experiencing a tumultuous period, with red and green figures intermingling continuously. In response to the demand for safe-haven assets, gold has hit a new all-time high, while the dollar has fallen to its lowest level against the euro in the past three years.

The Asian indices had a session that perfectly reflects the confusion reigning in the markets. While Japan's Nikkei (-2.96%) and South Korea's Kospi (-0.50%) closed in the red following the U.S. correction to 145% tariffs on China, the stock exchanges in Vietnam (+4.85%) and Taiwan (+3.25%) ended the day with gains.

Also posting gains were the main Chinese indices. The Hong Kong index closed with gains of 1.13%, while the Shanghai stock exchange improved its performance by 0.45%.

Gold reaches new all-time highs

In Europe, the major trading floors soon turned initial gains into moderate losses after the early morning hours (local time). Paris went from a rise of 0.87% to a loss of 0.19%, Frankfurt from gains of 0.91% to falls of 0.98%, while Madrid exchanged its 0.59% start for losses of 0.09%. London was the only market to improve its initial results, moving from +0.69% to +0.52%.

The trade turbulence was also felt in the price of the safe-haven security par excellence. The ounce of gold surpassed the $3,200 barrier, breaking its all-time high on several consecutive occasions, reaching $3,234.01 before Wall Street opened.