Financial markets swung sharply overnight as conflicting messages from Washington reignited volatility across asset classes. President Donald Trump declared that the US remained entrenched in a trade war with China, moments after Treasury Secretary Scott Bessent suggested that a longer term truce might still be possible. The contrasting signals have injected a fresh dose of uncertainty into markets that had only recently found their footing after months of geopolitical calm.
According to Bessent, Washington could consider extending its current pause on import tariffs beyond the existing three month window,Ā but only if Beijing refrains from implementing strict new export controls on rare earth materials. The US and China have maintained a fragile sequence of rolling 90-day truces throughout the year, with the next expiration date set for November. Traders are bracing for renewed volatility as both sides weigh their next moves.
In the commodities space, gold has surged over 5% this week, fueled by a combination of safe haven flows and dovish policy expectations. The metalās upward trajectory, which began in mid August, shows no sign of slowing as investors seek protection from geopolitical shocks and growing policy uncertainty. Silver has also joined the rally, climbing more than 3% on Wednesday as momentum broadens across the precious metals complex.
The resurgence of US-China tensions has injected fresh energy into the markets, reinforcing goldās role as a hedge against macro risk and signaling that traders may be preparing for a stormier period ahead.
Disclaimer: This report is for informational purposes only. It does not constitute investment advice or represent the official views of any central bank or regulatory body.