The dollar is falling, world stocks at record high, gold up 25%

From Yahoo Finance: 2025-06-30 09:10:00

Investors were prepared for market turbulence under Trump’s presidency, but the dramatic fall of the dollar was unexpected. World stocks hit record highs, borrowing costs are down, and fear gauges seem stable. However, extreme swings have affected major markets, with the dollar down over 10%, the biggest drop since the 1970s. Gold is up 25%.

Chief Investment Officer Vincent Mortier attributes the dollar’s decline to Trump’s trade war and fiscal bill. The U.S. deficit is projected to reach 6-7%, increasing the $36.2 trillion debt. The “Magnificent Seven” tech giants have struggled, while European weapons makers and Chinese rivals have surged. Trump’s military protection stance has led to increased European defense spending.

As a result of the dollar’s weakness, U.S. benchmark debt has suffered losses for international investors. Treasury yields surged past 5.1% in May but have since dropped to 4.8%. Switzerland reduced interest rates to zero. The euro, Japanese yen, and Swiss franc have all strengthened against the dollar, with emerging markets showing positive growth.

Emerging markets like Russia, Poland, Czech Republic, and Taiwan have seen significant currency gains. Bitcoin experienced volatility, while oil prices fluctuated due to global recession fears and geopolitical tensions. Precious metals like silver and gold have seen significant increases, with platinum reaching 10-year highs.

Trump’s upcoming “Big Beautiful Bill” and the expiration of the global trade war ceasefire raise concerns about market stability. With ongoing trade disputes and little progress on tariff agreements, the future of market resilience remains uncertain.



Read more at Yahoo Finance: Down with the dollar, up with guns