Bond Markets Rally After Trump Backs Down on Fed Chair Firing Threat

Treasury yields fell on Thursday as traders responded to developments in U.S.-China trade relations and President Trump’s decision not to fire Federal Reserve Chairman Jerome Powell. The 10-year yield dropped over 6 basis points to 4.323%, while the 2-year yield fell 5 basis points to 3.813%. Despite Trump and Treasury Secretary Bessent indicating potential for easing trade tensions with China, Chinese officials stated they would not discuss tariffs until the U.S. removes existing measures. Meanwhile, durable goods orders surged 9.2% in March, far exceeding expectations, though markets showed little reaction.

Dollar Heads for Worst Monthly Performance Since 2022 as Trade Tensions Persist

After a brief rally on Wednesday following President Trump’s more conciliatory tone on China and the Federal Reserve, the dollar resumed its decline on Thursday. China clarified there had been no trade negotiations and called for the U.S. to remove tariffs, dampening investor optimism. The dollar has dropped nearly 5% in April, with economists predicting further decline as non-U.S. investors reduce their American exposure. Meanwhile, other currencies strengthened against the dollar, and Trump’s meme coin surged 33% after promotion of a gala dinner with the president.

Gold’s Record Run: Is a Cooling Period Ahead After 30% Surge?

Gold prices have surged to record highs, briefly crossing $3,500 before settling around $3,400, representing a 30% increase this year. Despite a pullback to $3,300 on Wednesday, gold continues to outperform the S&P 500, which is down 8% year-to-date. Market experts attribute gold’s rally to monetary policy uncertainty, Trump’s threats of tariffs on China, and criticism of the Federal Reserve. While some analysts believe gold may be reaching “extremes” and could enter a consolidation phase, others suggest its value as a safe haven will remain strong amid ongoing geopolitical and economic uncertainties.

Gold Rebounds as Dollar Weakens, U.S.-China Trade Tensions Take Center Stage

Gold prices rebounded 1.4% on Thursday, recovering some ground after Wednesday’s 3% decline. The precious metal reached $3,332.89 per ounce as investors took advantage of lower prices and responded to a weakening dollar. Market attention remains focused on U.S.-China trade developments, with China demanding the cancellation of all “unilateral” U.S. tariffs before engaging in trade talks. Gold had reached an all-time high of $3,500.05 on Tuesday due to U.S. economic concerns but retreated when President Trump backed away from threats against the Federal Reserve chair and appeared to ease his position on China. Analysts describe the current market as a […]