Global Markets on Edge: Stocks Rise, Gold Hits Records as Investors Brace for Fed Signals and Budget Cues for Indian markets
Global markets started the week on a cautiously optimistic note, with U.S. equities continuing their upward momentum while safe-haven assets reflected underlying investor anxiety. The S&P 500 and Nasdaq advanced for a fourth consecutive session, reaching their highest levels in over a week. This rally marked their longest winning streak since December, driven largely by anticipation around upcoming mega-cap earnings and a key Federal Reserve policy update later this week.
Despite the equity optimism, risk aversion was clearly visible in commodities. Gold prices surged to historic highs above $5,100 per ounce, supported by heightened geopolitical tensions and economic uncertainty. Investors flocked to precious metals as a hedge against volatility, pushing silver and platinum to record levels as well. A weaker U.S. dollar further fueled gold’s rise, making commodities more attractive to global buyers.
Political developments played a major role in shaping sentiment. Fresh concerns emerged after U.S. President Donald Trump announced potential tariffs on Canada linked to its trade relations with China. Such statements have added to global trade uncertainty, reinforcing demand for safe-haven assets. Market experts suggest that political unpredictability, particularly from the U.S., remains one of the strongest drivers of precious metal prices this year.
Currency markets also reflected stress. The U.S. dollar slid sharply, heading for its steepest three-day decline in months, as investors reassessed expectations of stability. Washington’s apparent preference for a weaker dollar and ongoing institutional uncertainty surrounding the Federal Reserve have shaken confidence.
The Federal Reserve is widely expected to keep interest rates unchanged at its upcoming meeting. However, the backdrop is far from calm. Legal and political pressures involving senior Fed officials and the approaching leadership transition have added layers of complexity to an already sensitive period for global monetary policy.
Meanwhile, emerging markets are not insulated from these global crosscurrents. The Indian stock market remains under bearish pressure as investors adopt a wait-and-watch approach ahead of the Union Budget. Global uncertainty, coupled with domestic fiscal expectations, has kept risk appetite subdued, making the coming weeks critical for market direction.
