From Investing.com: 2025-05-12 09:41:00

The US-China tariff decrease announcement triggered market shifts, with the USD Index strengthening and commodity prices like copper falling. Tariffs drive dollar appreciation through reduced import demand and safe-haven capital flows. Stock rallies following trade deals often prove short-lived due to factors like information asymmetry, discount rate effects, and tariff persistence. Tariffs create persistent headwinds for global trade, distorting prices and disrupting supply chains. The recent USD Index breakout signals bullish momentum, leading to declines in gold and stocks. The stock market’s resilience may be temporary, with potential declines ahead.



Read more at Investing.com: Gold, US Dollar, and Stocks: The Hidden Cycle That Could Trigger a Market Reversal