Gold Hits All-Time High as Dollar and Treasuries Slide on Dismal U.S. Sentiment and Inflation Jitters
Gold surged to a new record high Friday, as the U.S. dollar and long-term Treasury bonds extended their sharp selloffs amid deepening concerns over the economy and persistent inflation.
Investors continued to retreat from traditional U.S. safe haven assets, unnerved by escalating U.S.-China trade tensions and a fresh wave of negative economic data. The University of Michigan’s latest consumer sentiment report showed a steep drop to 50.8 from 57.0 in March—approaching its lowest point in nearly three years and undercutting levels seen during the initial COVID-19 lockdowns.
Adding to the alarm, year-ahead inflation expectations jumped to 6.7%, up from 5% last month—the highest level recorded since 1981.
In response, markets saw another round of heavy selling in long-duration U.S. government bonds and the greenback. The yield on the 10-year Treasury spiked to above 4.55% during morning trading in New York, rising more than 50 basis points over the past week. The U.S. dollar index (DXY) tumbled below 100, marking a three-year low.
Gold, long viewed as a hedge against inflation and currency volatility, rallied to an all-time high of $3,240 per ounce.
After days of extreme volatility, U.S. equities traded within a tighter range on Friday. The Nasdaq Composite was up 0.6% at last check.
Meanwhile, digital assets climbed alongside gold. Bitcoin (BTC) held steady above $82,000, gaining 4% over the past 24 hours. The CoinDesk 20 Index, tracking a broad basket of crypto assets, rose 3%, led by 6% gains in Solana (SOL) and Avalanche (AVAX).
Market Misreads or a Red Flag?
Some analysts caution that the selloff in U.S. bonds and the dollar could be signaling deeper cracks in economic confidence, while others argue technical factors are largely to blame.
“U.S. government debt and the dollar—two of the world’s most liquid safe havens—are behaving erratically,” noted Noelle Acheson, analyst and author of Crypto Is Macro Now, in a Friday commentary. “This turmoil appears largely contained to U.S.-centric assets, not seen across other traditional safe havens.”
Billionaire investor Bill Ackman echoed that sentiment, attributing the sharp moves to positioning rather than fundamentals.
“What we’re seeing is likely the result of leveraged investors being forced out of trades, not a reflection of long-term fundamentals,” Ackman posted on X. “Markets are increasingly shaped by technical flows, making short-term signals unreliable for assessing the broader impact of policy decisions.”
