There has been no shortage of caution for investors as geopolitical tensions reach a fever pitch. Yet, on Tuesday, US stocks had gained and gold reached a new record high as the imposed tariffs from President Donald Trump continued to dictate the market.
The finance market in the United States has been driven by ongoing pressure from the current administration’s economic policy. With 25% tariffs on Mexico, Canada, and China being delayed a month, Wall Street bounced back slightly. However, the ongoing worries derived from these tensions have driven gold as a key haven asset amid burgeoning concerns and volatility.
Also Read: Google, Nvidia, & Intel Face Chinese Probe as US Tensions Rise
Geopolitical Worries Drive US Stocks and Gold as Market Continues to Face Uncertainty
The stock market has continued to operate in a state of growing volatility. Recent political developments have greatly impacted companies like Tesla (TSLA), with incoming tariffs threatening share prices. However, Tuesday marked an important moment as things came back into focus.
After investors were increasingly cautious, on Monday, US stocks and the gold price were back on Tuesday as Trump’s tariffs continued to dictate the market. Late Monday, the 25% tariff levied on both Mexico and Canada had been delayed. After both presidents spoke with Trump, the move was made. Therefore, the market responded positively.
Also Read: US Stocks: Which Was Hit the Hardest by Trump’s Tariffs?
All three of the major indexes had increased after the one-month delay was enacted, Reuters reported. However, it also saw gold reach yet another record because of tensions going unresolved. China is still facing a 10% tariff, with the yellow metal surpassing $2,850 for a landmark price.
Now, all eyes are on what retaliatory action could come from China. They had previously sought to issue a complaint to the World Trade Organization (WTO). Additionally, they opened fresh probes into some of the largest companies in the US as they seek leverage against the Western power. Until things are resolved, uncertainty and thriving haven assets will be all that the market can expect.
