Market Jitters: Yen Rallies and Gold Hits New Highs Amid U.S. Tariff Tensions

The Japanese yen surged and gold reached record highs as markets reacted to impending U.S. tariffs announced by President Trump. Concerns of inflation and constrained economic growth led to a shift toward safe-haven assets. Reciprocal tariffs and U.S. core inflation data further heightened investor anxiety.

The Japanese yen experienced a significant rise, and gold reached unprecedented heights as traders expressed concern over U.S. President Donald Trump's impending tariffs. These policy moves are seen as potential triggers for inflation and may slow down economic growth, causing markets to seek safe-haven assets.

Anticipation is building around the new tariffs that the White House is set to announce on Wednesday. While details remain elusive, President Trump confirmed that nearly all countries will face these duties. Despite hints at possible deal exceptions, over the weekend, Trump was reportedly pushing for a tougher stance.

The yen advanced to a peak of 149.30 per U.S. dollar on Monday, partially reversing Friday's 0.82% rally driven by rising U.S. core inflation figures. Meanwhile, gold briefly touched an all-time high of $3,097.36. As a result, risk-averse investors flocked to U.S. Treasuries, lowering the yield on the benchmark 10-year note to 4.1960%.

(With inputs from agencies.)