Gold surges, stocks fall as investors seek safety

Washington [US], September 3: Stock markets fell and gold prices hit a record high on September 2 as investors sought safe havens amid market turmoil.
During the trading session on September 2, major indexes on Wall Street fell across the board, while European stock markets lost significant points at the close.
Borrowing costs for the US, France and Britain rose as yields on their government bonds jumped.
Frankfurt's DAX index fell 2.3%, while London lost 0.9%.
"September can be a strange month for financial markets as stocks traditionally tend to underperform," said Kathleen Brooks, head of research at XTB Traders (Poland).
"However, the sell-off in bond markets and the rush into the US dollar and gold is a sign that investors are looking for safe havens and liquid assets," Brooks added.
According to AFP, investors are currently concerned about US President Donald Trump 's war with the US Federal Reserve (Fed), tariff uncertainty and Europe's public financial situation.
Meanwhile, Mr. Chris Beauchamp, financial market analyst at investment and trading platform IG (UK), said: "The market often sees an explosion of volatility after the US holiday, but today seems to be something special, as European markets plunged in early trading and bond yields continued to rise."
On the evening of September 2, the price of gold reached 3,536.56 USD/ounce, easily surpassing the previous record of 3,500.10 USD/ounce in April.
Meanwhile, the dollar rose against the euro. However, France's long-term borrowing costs jumped to their highest level since 2011. The yield on 30-year UK government bonds hit its highest level since 1998.
On the corporate front, shares of Nestle fell about 0.7% after the Swiss food group fired chief executive Laurent Freixe over an affair with a subordinate.
Wall Street analysts pointed out that the delay from the US court ruling on August 29 has dashed hopes that the trade war is about to end, according to AFP.
Investors are also watching developments in US President Donald Trump's effort to fire Fed Governor Lisa Cook, with her lawsuit set to go to trial on September 2. The case has important implications for the US Fed and its independence.
"The combination of tariff uncertainty, Fed concerns and seasonal weakness has left the market nervous as the month begins," said David Morrison, senior market analyst at financial services firm Trade Nation.
Source: Thanh Nien Newspaper