Trump’s Tariff Shock Sparks Global Market Turmoil

*Stock Selloff & Safe-Haven Surge – Equities plunged as risk appetite weakened, while gold hovered near record highs.

*Market Volatility Spikes – Investors brace for further turmoil, closely watching trade developments and global economic impact.

Market Summary

Global financial markets faced heightened volatility following U.S. President Donald Trumps sweeping tariff announcement, prompting a sharp decline in risk appetite. Investors reacted swiftly by offloading high-risk assets, triggering a significant equity market selloff, while safe-haven assets such as gold hovered near record highs amid escalating uncertainty.

The newly imposed tariffs, set at a minimum of 10% on all U.S. imports, with some nations facing duties exceeding 50%, mark one of the most aggressive trade policies in modern history. Major economies, including China, the European Union, Japan, and Vietnam, are among the hardest hit, intensifying fears of a prolonged global trade conflict. This unexpected escalation has sent shockwaves through financial markets, with investors recalibrating their portfolios to navigate the unfolding turmoil.

With trade tensions escalating, investors are bracing for further turmoil. Market sentiment remains fragile, with uncertainty dominating global asset movements.

Current rate hike bets on 7th May Fed interest rate decision: Source: CME Fedwatch Tool

0 bps (81.5%) VS -25 bps (18.5%)

Market Movements

DOLLAR_INDX, H4

The U.S. Dollar Index (DXY) gapped lower to 103.06 in today‘s Asian session as markets reacted to the Trump administration’s broad-based tariff announcement. Investors perceived the aggressive trade policy as a potential drag on U.S. economic growth, leading to a sharp loss of confidence in the greenback. The dollar‘s weakness reflects heightened concerns over the impact of protectionist measures, with traders closely watching for further developments that could dictate the currency’s next move.

The dollar gaped down to its lowest level in 6 months, suggesting a bearish bias for the dollar. The RSI has dipped into the oversold zone while the MACD is hovering alongside the zero line, suggesting that a bearish momentum might be forming.

Resistance level: 104.70, 106.10

Support level: 101.70, 100.25

XAU/USD, H4

Gold prices broke out of their consolidation range as investors sought refuge in the traditional safe-haven asset amid escalating market uncertainties. The precious metal surged in response to growing trade-war risks after President Trump, as expected, announced a broad range of tariffs targeting most U.S. trade partners. Additionally, the weakening U.S. dollar provided further support, propelling gold to a fresh all-time high. With market sentiment tilting toward risk aversion, golds bullish momentum appears firmly intact.

Gold prices extended their gain and have gained more than 2% this month, suggesting a bullish bias for gold. The RSI remains close to the overbought zone, while the MACD hovers at elevated levels, suggesting that the bullish momentum remains intact with gold.

Resistance level: 3175.15, 3220.00

Support level: 3140.50, 3110.00