Dollar Plunges to Multi-Year Low as Gold Breaches $5,300 Amid Trump’s ‘Weaker Dollar’ Endorsement

The U.S. dollar tumbled further yesterday, hitting multi-year lows after a statement from former President Trump welcomed a weaker greenback, propelling the Euro to trade above the 1.2 mark. This pronounced dollar weakness has sent gold prices soaring another 3.7%, closing at $5,308 an ounce, as what some analysts are calling the “debasement trade” intensifies.
The shift in currency dynamics is coinciding with mixed signals from the artificial intelligence sector. Amazon announced an additional 16,000 job cuts, citing advancements in AI as a factor in its workforce adjustments. Conversely, Dutch semiconductor equipment giant ASML Holding NV posted record orders, largely driven by robust demand for advanced chips used in AI development, sending its stock surging 5.3%.
The dichotomy of AI’s impact will be further scrutinized today as tech giants Microsoft Corp. and Meta Platforms Inc. prepare to publish their earnings reports. Investors will be closely watching these results for fresh insights into the true scale and speed of AI integration and its effect on corporate profitability and operational efficiency.
In European markets, shares are trading flat as investors monitor the burgeoning earnings season. However, the banking sector has emerged as the continent’s best-performing industry, with analysts anticipating strong earnings to fuel its next leg of growth. Nasdaq futures are signaling a 0.9% rise at the open, suggesting continued optimism for technology stocks despite the broader market’s cautious stance.