Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
A martyr and a number of wounded as a result of the raid that targeted a vehicle in the town of Kafra.
Al Mayadeen correspondent: An Israeli drone bombed a vehicle in the town of Kafra, south of Lebanon.
Al Mayadeen correspondent: Iranian Defense Minister Amir Nasirzadeh arrives in Ankara for talks with his Turkish counterpart.
Israeli media: Five wounded in shooting-ramming operation near Tunnel checkpoint south of al-Quds.
Israeli media report a number of Israelis wounded in shooting-ramming operation south of Al-Quds
Venezuelan President's "external unrest" decree a constitutional response activated when the country is faced with external threats
Venezuelan President Nicolas Maduro signs decree announcing state of "external unrest"
Al-Nakhalah: The US-Israeli announcement is a recipe for igniting the region
Al-Nakhalah: The US-Israeli agreement is a recipe for continued aggression against the Palestinian people
PIJ Secretary-General, Ziyad al-Nakhalah: What Trump and Netanyahu announced is an American-Israeli agreement and reflects 'Israel’s' position in full

Global stocks sink as gold hits record amid Fed, tariff fears

  • By Al Mayadeen English
  • Source: Agencies
  • 2 Sep 2025 21:37
3 Min Read

Global markets slumped and gold hit record highs as investor fears over Trump's Fed shake-up, tariff disputes, and European fiscal strains drove a flight to safe havens.

Listen
  • x
  • Traders Bryan Masseria, center, and Columb Lytle, right, works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)
    Traders Bryan Masseria, center, and Columb Lytle, right, works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)

Stock markets fell sharply on Tuesday while gold surged to unprecedented levels, as investors flocked to safe havens amid mounting concerns over US political interference in monetary policy, uncertainty around tariffs, and mounting fiscal strains in Europe.

Wall Street returned from the Labor Day holiday to steep losses, with the S&P 500 down 1.4%, the Dow sliding 1.1%, and the Nasdaq off 1.7%. In Europe, Frankfurt's DAX dropped 2.3%, though still up 18% for the year, while London's FTSE shed nearly one percent. Bond yields spiked, pushing up borrowing costs in the US, France, and the UK.

Speaking to AFP, Kathleen Brooks, research director at XTB, observed that September often brings weakness in equities. "However, a selloff in the bond market and a rush to the dollar and gold are signs that investors are rushing into safe havens and liquid assets," she said.

Gold prices leapt to $3,501.59 an ounce, narrowly topping April's record, before climbing further in late trading to $3,524.27. Analysts attribute the rally not only to market jitters but also to expectations of US rate cuts, a weakening dollar, and strong central bank demand, particularly from China. Forecasts now suggest gold could test $3,600 to $3,900, with some projections pointing toward $4,000 by 2026.

Chris Beauchamp, chief analyst at IG, noted, "Markets often see a burst of volatility after US holidays, but today seemed to have something more about it, as European markets nose dived in early trading and bond yields continued to rise."

Related News

Gold prices hit new record with US shutdown, weak job data

Gold nears $4,000 as it heads for 16-year high

Fed independence questioned

Investor unease intensified as President Donald Trump pursued the removal of Federal Reserve Governor Lisa Cook, a move widely seen as undermining the central bank's independence. A court heard Cook's legal challenge on Tuesday, underscoring what analysts view as a high-stakes clash over the Fed's autonomy. "Investors are increasingly concerned about President Trump's interference with the running of the US Federal Reserve," David Morrison, senior analyst at Trade Nation, told AFP.

The controversy comes alongside heightened speculation of Fed rate cuts, with Governor Christopher Waller signaling support for reductions beginning in September and extending into the next six months. While markets welcomed dovish signals, political pressure on the Fed rattled confidence.

Tariff disputes and European strains

Uncertainty around Trump's tariff campaign added to the volatility. A federal court recently ruled that many of his duties were unlawful, though it allowed them to remain in place until mid-October pending appeal. Morrison warned, "This combination of tariff uncertainty, Fed concerns, and seasonal weakness left markets on edge as the month began."

In Europe, French bond yields surged to their highest since the 2011 eurozone debt crisis, just as Prime Minister François Bayrou faces a crucial confidence vote next week over his government's budget. In Britain, 30-year bond yields climbed to levels unseen since 1998, deepening worries about the UK's sluggish economy.

Energy and corporate moves

Oil prices rose on stalled Ukraine–Russia peace talks, reinforcing energy market concerns. On the corporate front, Nestlé shares fell 0.7% after the food giant abruptly dismissed CEO Laurent Freixe over a workplace relationship.

Read more: 'Serious danger' if Trump controls US monetary policy: ECB

  • Federal reserve
  • tariffs
  • Trump
  • markets
  • Gold

Most Read

Iran exposes Israeli nuclear projects in major security breach

Iran exposes Israeli nuclear projects in major security breach

  • Politics
  • 24 Sep 2025
Last photo showing Martyr Sayyed Hassan Nasrallah and Martyr Hajj Hassan in a Resistance operations room, Beirut's southern suburb, Lebanon, days before their martyrdom (Al Mayadeen)

In heart of battle: Al Mayadeen shares last photo of Sayyed Nasrallah

  • Politics
  • 27 Sep 2025
27 wounded in Eilat drone explosion amid failed interception

27 wounded Israelis in Eilat drone explosion amid failed interception

  • Politics
  • 24 Sep 2025
Hamas fighters stand in formation ahead of a ceremony to hand over Israeli captives to the Red Cross in Nuseirat, Gaza Strip, Feb. 22, 2025. (AP)

Hamas reviews Trump’s Gaza ceasefire plan as PIJ rejects

  • Palestine
  • 30 Sep 2025

Coverage

All
War on Gaza

Read Next

All
ap
Politics

'Israel' pays influencers $7K per post to whitewash Gaza genocide

ap
Politics

UK sent 110,000 bullets to 'Israel' in August despite genocide in Gaza

Gold prices hit new record with US shutdown, weak job data
Economy

Gold prices hit new record with US shutdown, weak job data

ap
Politics

Unidentified ships shadow Gaza flotilla as activists prepare for raid

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS