Wall Street and precious metals reach new highs as investors ignore U.S. government shutdown concerns and resume buying. Foreign-owned Treasuries at the Fed hit a 13-year low, signaling potential ‘de-dollarization’ and overseas demand for U.S. assets. Key market moves show record-breaking gold and silver prices, while AMD surges 43% this week.

Policymakers worldwide are aggressively boosting growth through monetary and fiscal measures despite rising inflation, loose financial conditions, and record market highs. Japan’s pioneering policies, led by fiscal dove Sanae Takaichi, may set the tone for global markets. U.S. Federal Reserve remains divided on further rate cuts due to labor market risks and inflation concerns.

Foreign central banks’ declining holdings of U.S. Treasuries at the New York Fed raise concerns about overseas demand for dollar assets. Recent data suggests consistent demand for Treasuries, contradicting ‘de-dollarization’ fears. Weekly Fed custody holdings indicate a significant drop in foreign central bank holdings, potentially signaling a shift in market dynamics.

Despite concerns about ‘de-dollarization,’ recent data shows continued foreign demand for U.S. Treasuries. Central banks bought a net $17.1 billion in Treasuries in July, indicating ongoing appetite for dollar-denominated assets. The decline in Fed custody holdings may raise red flags, but comprehensive data suggests sustained global interest in U.S. securities.

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