US may tariff drugs, USD rebounded Tue then fell back; gold hit 2-week high

On Tuesday, the US dollar index fluctuated downward throughout the day as the March trade deficit widened to a record high of $140.5 billion, ultimately closing down 0.54% at 99.24. The benchmark 10-year US Treasury yield closed at 4.3020%; The two-year US Treasury yield, which is more sensitive to monetary policy, closed at 3.7910%. On Wednesday (May 7th Beijing time), spot gold trading was around 3391. Gold prices rose nearly 3% on Tuesday, returning to around 3400 and reaching a two-week high, supported by post holiday market purchases and concerns about possible tariffs on imported drugs by the United States, while investors waited for the results of the Federal Reserve policy meeting. Due to increased demand from Asia and Europe, decreased US production, and Israel's renewed escalation of the situation, international oil prices have surged. WTI crude oil ultimately closed up 3.18% at $58.97 per barrel; Brent crude oil closed up 2.84% at $62.01 per barrel.