Tariff threats stir risk-off mood boosting gold and challenging the dollar
13.10.2025, 14:02:55 • 1 min read
The Forex market recently shifted to a risk-off sentiment following renewed tariff threats from President Trump against China. This tension impacted key assets differently, with the US Dollar weakening and gold surging sharply. Safe-haven demand under geopolitical uncertainty has notably influenced these movements, affecting currency pairs and overall market dynamics.
In this article
Gold Soars on Safe-Haven Demand amid Trade War Fears
Gold prices surged past significant highs as investors sought safe-haven assets amid fears of an escalating trade war due to US tariff threats. Such risk-off dynamics typically increase demand for precious metals, reflecting concerns about economic stability and potential disruptions from geopolitical conflicts.
US Dollar Faces Headwinds from Political and Economic Uncertainty
The US Dollar struggled to maintain strength amid choppy trading influenced by tariff tensions and political discord, including fears of a government shutdown. Risk-off flows and uncertainty tend to weigh on the dollar, affecting its performance against major currencies like the Japanese yen and causing volatility in key currency pairs.
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Recent tariff threats and geopolitical tensions have created a cautious trading environment, driving investors toward safe-haven assets such as gold while pressuring the US Dollar. These developments highlight the sensitivity of Forex markets to political events and economic uncertainties, shaping currency movements and investor behavior in times of escalating risks.
Sources
- Forex Today: Trump’s renewed tariff threats weigh on USD, lift Gold
- Gold record setting run remains uninterrupted as trade tensions offset positive risk tone
- USD Dollar Index (DXY) struggles to regain 99.00 on choppy trading
Not investment advice. Published 13.10.2025, 14:02:55