Gold Surges as Investors Dump Dollar, Bonds Ahead of Volatile Market Open

Why Are Global Investors Dumping U.S. Assets Today?

A global pullback from U.S. markets is rattling sentiment ahead of the Wall Street open. Investors are exiting both Treasuries and the dollar—an unusual move that highlights mounting concern over U.S. trade policy, fiscal stability, and economic growth. As cash rotates into alternative havens, U.S. markets are bracing for a choppy session.

Are U.S. Treasuries Still a Safe Bet?

U.S. government bonds, typically a shelter in times of uncertainty, are being sold aggressively. The 10-year Treasury yield jumped to 4.45%, up 45 basis points in a week—the sharpest rise since 2001. The 30-year yield climbed to 4.90%, nearing its highest levels in over four decades.

Allianz’s Michael Krautzberger noted this isn’t about inflation, but rather concerns over recession and America’s long-term debt path. The message from the bond market is clear: confidence is cracking.

Why Is the Dollar Breaking Down?

The U.S. dollar is falling hard against traditional safe-haven currencies. It hit a 10-year low versus the Swiss franc and dropped to a six-month low against the yen, while the euro spiked to $1.14739—its highest level since early 2022.

Gold, meanwhile, surged to a record $3,227.45. The broad move away from the dollar suggests that investors no longer view it as the automatic go-to in periods of stress.

Has the Trade War Escalation Spooked Markets?

Fresh tariff hikes between the U.S. and China have deepened investor anxiety. The U.S. raised duties to 145% on Chinese imports; China responded with 125% on U.S. goods. With no signs of renewed talks, fears of prolonged economic fallout are rising. Deutsche Bank flagged risks of a disorderly decoupling, while global equity markets are under pressure.

What Should Investors Expect Now?

As U.S. stock futures swing wildly, traders are entering the session on edge. The simultaneous selloff in Treasuries and the dollar points to a deep loss of confidence.

Until there’s clarity on trade or signs of policy support, money is likely to keep flowing into defensive assets. For now, the bias remains risk-off, and any negative headlines could spark another wave of selling.

Traders should expect heightened volatility and limited upside until sentiment stabilizes.

More Information in our Economic Calendar.