U.S. Treasury Yields Surge as 30-Year Hits 22-Year High 
Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Dollar Holds Near Two-Month High as Yen Approaches 160 
US Comfortable With Canada Trade Standoff as Import Bans Loom 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
Australia Unemployment Hits Five-Year High Despite Strong Jobs Growth 
Gold Holds Near $4,275 as Rising Treasury Yields Fuel Fed Rate Hike Bets 
Fed Unveils Stablecoin Rules Under GENIUS Act 
UK PM Burnham to Unveil Economic Vision at Labour Conference 
China Agrees to Buy 20 Million Tons of U.S. Coal 
Japanese Yen Rebounds as Trump Flags Currency Weakness 
Trump, Xi Focus on Trade and AI at White House Summit 
RBI Uses $10 Billion Currency Swaps to Drain Excess Rupee Liquidity 
Add as a preferred source on Google
Gold prices surged past $2,900 per ounce for the first time this week, driven by escalating trade tensions after President Donald Trump hinted at a 25% tariff on all US steel and aluminum imports.
Despite this record-breaking rally, Joe Maher, assistant economist at Capital Economics, warns that gold's momentum might not last. Precious metals have performed exceptionally well in 2025, even without support from typical drivers like the US dollar and real yields. The usual inverse correlation between gold prices and the 10-year US TIPS yield has weakened, with investors seeking gold as a hedge against potential trade wars.
Fears of gold being caught in trade disputes may have prompted US investors to stockpile the metal, particularly on the Comex exchange. Central banks have also increased gold purchases, potentially to reduce exposure to US sanctions, especially after $300 billion of Russian reserves were frozen following the Ukraine invasion.
Additionally, the large US fiscal deficit and Trump's remarks on national debt may be eroding reserve managers' confidence. Robust demand from China’s central bank and private investors seeking stable assets has further fueled gold’s rise.
While non-traditional drivers may continue to support gold prices in the short term, Capital Economics predicts that central bank diversification will be gradual. The high price may deter some investors, and expected rises in long-term US Treasury yields could push gold prices down to $2,750 by the end of 2025.
