Trade tensions rise, US dollar falls, and gold may hit $4200 due to a looming government shutdown.

On Tuesday, the US dollar index barely held above the 99 mark, ultimately closing 0.21% lower at 99.056. US Treasury yields generally fell, with the benchmark 10-year yield hitting 4% for the first time since September 17, ultimately closing at 4.033%, and the 2-year yield, which is sensitive to the Federal Reserve's policy interest rate, closing at 3.491%. Gold prices once hit a record high of $4,179.47 per ounce on Tuesday. Although they briefly retreated below the $4,100 mark during trading, bargain-hunting quickly helped gold prices resume their upward trend, closing 0.77% higher at $4,142.01 per ounce. International trade concerns, the US government shutdown, geopolitical turmoil, and monetary policy shifts are expected to help gold prices rise further, with institutional targets already looking beyond the $5,000 mark. Due to the International Energy Agency's warning of a severe global oil supply surplus in 2026 and ongoing trade tensions, international crude oil prices resumed their downward trend. WTI crude oil once fell sharply by 3%, but the decline narrowed later, ultimately closing 1.69% lower at $58.23 per barrel; Brent crude oil ultimately closed 1.76% lower at $62.07 per barrel.