Gold Reaches $5,000 Whilst Dollar Drops to a Four-Month Low – Europe Market Wrap

The Dollar continued to fall on Monday as suspicion grew that the US could work with Japanese authorities to bolster the Yen. Stocks fluctuated, as gold reached $5,000 per ounce.

The Dollar plummeted for the third straight day, losing strength against most major peers and reaching its lowest level since September. The Yen soared to its highest level in two months. S&P 500 futures were hardly changed. Precious metals continued their explosive run, with gold setting a new record and silver surging 6%.

Signs that Tokyo and Washington coordinated on rate checks fueled the volatility in foreign-exchange markets, as traders viewed the steps as preparation for direct intervention. Joint US-Japan action would give authorities greater power to deter speculators after the Yen fell to an 18-month low earlier this month.

Treasuries surged across the curve as traders increased their bets on interest rate reduction in 2026 after BlackRock executive’s bid to lead the Fed gathered traction. With an announcement on the next Fed chair expected as early as this week, rate expectations will be closely watched as current Chair Powell announces his latest decision on Wednesday.

Some of Wall Street’s top strategists are beginning to detect early signs that US profit growth is expanding beyond the tech megacaps.