Gold tops $3,500 for the first time ever as US stocks and dollar surge

Gold has climbed above $3,500 per ounce for the first time, according to Bloomberg News, pushing yearly gains to 43% and tripling the growth of most major stock indexes.

Prices have been moving upward since 2022, now standing 100% higher than three years ago. Analysts point to worsening government deficit spending, ongoing inflation, and a weakening labor market as the backdrop for the rally.

US stock futures were slightly higher Thursday night after the Dow Jones Industrial Average recorded its second loss in three trading days.

Contracts tied to the Dow rose 82 points, or 0.2%, while futures for the S&P 500 and Nasdaq 100 also increased 0.2% each. The Thursday session closed with the Dow down 224 points, or 0.5%, the S&P 500 slipping 0.08%, and the Nasdaq Composite gaining 0.4%. The Dow swung from a 305-point gain at its intraday high to a 394-point loss at its low.

Tariffs trigger market adjustments

President Donald Trump’s “reciprocal” tariffs went into effect at midnight Thursday. The highest duties included 41% on Syria and 40% on Laos and Myanmar. Earlier in the day, stocks got a boost after Trump confirmed his 100% tariff on imported semiconductor chips would exempt companies “building in the United States.”

The US dollar strengthened after Bloomberg reported that Federal Reserve Governor Christopher Waller is a leading contender to be nominated as Fed chair by Trump’s administration.

Waller has met with members of Trump’s team but not the president. Meanwhile. Trump announced his nomination of Stephen Miran, current chair of the Council of Economic Advisors, to replace Adriana Kugler on the Federal Reserve Board of Governors. Miran will serve until January, completing the remainder of Kugler’s term after her resignation last week.

The dollar index rose 0.18% to 98.36, while the greenback gained 0.1% to 147.49 yen. The British pound advanced 0.41% to $1.341 after more Bank of England policymakers than expected voted to keep rates unchanged, despite a 25 basis point cut.

The euro dropped 0.27% to $1.1627, after reaching $1.1698 earlier on hopes of progress in talks to end the war in Ukraine. Russian President Vladimir Putin and Trump are scheduled to meet in the coming days following talks between Trump’s envoy Steve Witkoff and Putin.

The dollar rose 0.16% to 0.808 against the Swiss franc after Swiss President Karin Keller-Sutter returned from Washington without securing a deal to avoid a 39% tariff on Swiss exports. Keller-Sutter said discussions with US officials will continue.

In the crypto market, bitcoin gained 1.06% to trade at $116,348. By week’s end, the S&P 500 is set for a 1.6% gain, the Dow for 0.9%, and the Nasdaq for 2.9%.