Trade tensions escalate impact US assets gold price climbs over $60

The escalating global trade tensions dragged down US assets, causing the spot price of gold to rise more than $60 to a one-week high. S&P 500 index futures fell by 0.6%. Long-term government bonds led the bond market lower, driving the yield on US 30-year Treasury bonds up by 5 basis points to 4.98%. The Bloomberg Dollar Spot Index dropped by 0.5%, with the dollar weakening against all G10 currencies. The escalation of the Russia-Ukraine conflict provided investors with another reason to avoid risky assets, leading to a sell-off in European stock markets. The Stoxx 600 index fell by 0.3%, with auto, consumer goods, and technology stocks leading the decline. European government bonds underperformed US Treasuries, with the yields on UK and German 30-year bonds rising by about 6 basis points each. Due to the combined impact of escalating geopolitical tensions and the limited increase in production by the OPEC+ alliance, the price of West Texas Intermediate crude oil futures rose by 3.5%, approaching $63 per barrel.