World shares slip as gold hits fresh record above $3,550 amid dollar concerns
Gold climbs to an intraday high near $3,578 as investors seek havens; equities mostly lower on trade, policy and geopolitical uncertainty
World stock markets were mostly lower Tuesday as the price of gold surged to a fresh record, reflecting investor demand for havens amid concerns about the U.S. dollar and broader geopolitical and policy risks.
The spot price of gold climbed as high as $3,578.40 per ounce early Tuesday, surpassing an April intraday record of $3,509.90. It later eased to $3,549.10, a gain of about 1.1% on the day. Silver also rose, trading up 1.8% at $41.46 per ounce — topping $40 for the first time since 2011.
Analysts linked the precious-metals rally to renewed doubts about the greenback and a shift away from traditional government debt. "That’s not just a price tick; it’s the market’s confession that faith in fiat is wobbling," Stephen Innes of SPI Asset Management wrote. Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, said investors have been moving away from U.S. Treasuries for years and that the trend accelerated this year amid concerns over U.S. government debt, trade tensions and geopolitical risks.
Equity markets were mixed in early trading. Germany’s DAX fell 1.1% to 23,767.08, while France’s CAC 40 was essentially flat at 7,707.09. Britain’s FTSE 100 lost 0.4% to 9,158.78. Futures pointed to a softer start on Wall Street with S&P 500 futures down about 0.5% and Dow futures off roughly 0.4% after U.S. markets were closed Monday for the Labor Day holiday.
Markets in Asia saw varied moves. Tokyo’s Nikkei 225 rose 0.3% to 42,310.49 as investors snapped up bargains following recent losses, while an auction of 10-year Japanese government bonds was seen as a test of that market’s stability. Hong Kong’s Hang Seng slipped 0.5% to 25,496.55 and the Shanghai Composite dropped 0.5% to 3,858.13. South Korea’s Kospi advanced 0.9% to 3,172.35, Australia’s S&P/ASX 200 fell 0.3% to 8,900.60, and India’s Sensex gained 0.4%. Thailand’s SET rose 0.4%.
Market attention also remained on a recent U.S. appeals court decision that curtailed aspects of President Donald Trump’s use of national emergency declarations to impose higher tariffs. The U.S. Court of Appeals for the Federal Circuit ruled 7-4 that the declarations went too far in justifying steep import taxes applied to many countries, largely upholding a prior trade court decision while rejecting the part of that ruling that had immediately struck down the tariffs. The decision gives the administration time to appeal to the U.S. Supreme Court.
Investors were also awaiting a raft of economic readings this week that could shed light on how economies are performing under elevated trade tensions and higher tariffs. U.S. reports on durable goods orders, manufacturing activity and jobless claims are scheduled, while European manufacturing data and a preliminary consumer price index reading for the euro-area are due.
Energy markets rose: U.S. benchmark crude gained $1.86 to $65.87 per barrel and Brent crude increased $1.22 to $69.37 per barrel. Currency moves included a stronger dollar against the yen, at 148.54 from 147.18, while the euro weakened to $1.1635 from $1.1711.
The combination of stronger precious-metals prices, pressure on some equity benchmarks and shifts in fixed-income demand highlighted investor caution. Market participants said the catalysts included policy uncertainty in Washington, persistent trade and geopolitical frictions, and lingering questions about sovereign debt — forces that typically drive flows into traditional safe havens such as gold.