Global markets made modest gains on Monday, with gold surging to a new all-time high and the US dollar remaining under pressure, as investors processed the latest developments in President Donald Trump’s trade policy stance.
Technology shares were at the forefront of early market advances after the Trump administration announced a temporary exemption from tariffs on key Chinese electronic imports late Friday. The products spared included smartphones, laptops, and semiconductors—prompting early optimism. However, gains tapered off later in the day as further remarks from the President added to the uncertainty.
The S&P 500 ended the session up 0.8 percent, despite a brief dip into negative territory midway through trading.
Fawad Razaqzada, analyst at City Index and Forex.com, commented: “Washington’s partial retreat from its hard-line tariff regime – specifically the temporary exemption of a raft of tech goods from punitive import levies – has momentarily eased fears of an all-out trade war.”
President Trump, however, complicated the narrative on Sunday by suggesting the exemptions were being misinterpreted. He reiterated that no nation, particularly China, would be spared from the impact of his administration’s trade actions. He indicated that many of the temporarily exempted items could soon be subjected to new tariffs, framing the move as a shift to a different tariff “bucket.”
David Morrison of Trade Nation observed that the President’s remarks only heightened confusion. “The comment has only added to confusion and reinforced the idea that the exemptions are not permanent, keeping uncertainty elevated as the new week begins,” he said.
The dollar continued to trade on the back foot amid ongoing concerns over trade policy, although the volatility was more restrained compared to recent sessions where sharp declines were recorded, especially against the euro.
US Treasury yields posted a mild rebound, following a sell-off the previous week that had raised questions about the reliability of government bonds as a safe haven. Meanwhile, gold maintained its upward momentum, briefly touching a historic peak of $3,245.75 per ounce before easing slightly.
Despite the less aggressive tone on tariffs, Razaqzada warned that the fundamental picture had not shifted substantially. “Unless a broader US-China trade accord is struck soon, the stalemate could continue to hold back risk appetite. While this softening of tone may appear constructive on the surface, it doesn’t meaningfully shift the dial unless accompanied by substantive progress in US-China trade relations,” he said.
