The financial markets are experiencing heightened volatility as they start the week, primarily driven by the announcement from former President Donald Trump regarding the imposition of a new horizontal tariff of 15% on all U.S. trading partners. This decision comes in response to a ruling from the U.S. Supreme Court and has sparked renewed investor anxiety, pushing many to seek safer investment options. As a result, gold prices have observed a significant increase, affirming its status as a safe haven in uncertain times.

In London, gold has risen by 0.8%, reaching approximately $5,133 per ounce, signaling a strong pivot of investor sentiment toward secure assets. Concurrently, the dollar index has decreased by 0.3% against a basket of currencies, indicating a declining confidence in the U.S. dollar as risks associated with global trade start to mount. Moreover, yields on 10-year U.S. Treasury bonds are slightly lower at 4.07%, a potential sign of a modest flight to security among investors looking for stability amidst the turbulent market conditions.

The impact of these developments has also been felt on stock markets. In the United States, futures for major indices such as the S&P 500 and Nasdaq 100 indicate a drop of 0.5% and 1%, respectively, with the technology sector bearing the brunt of investor concerns. Meanwhile, European markets are facing similar pressures, as reflected in declines in key indices like the pan-European Stoxx, leading to apprehension about the broader economic implications of the newly introduced tariffs.