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Gold hit another record high and selling in the US dollar intensified after Donald Trump said he was not worried about the sharp decline in recent days, as fears over the President’s erratic policymaking intensified in currency markets.
In Asia, gold prices rose 0.7 percent on Wednesday, crossing the $5,200 per troy ounce level and reaching $5,218, compared to a 3 percent increase on Tuesday.
The dollar was down 1.3 percent against other major currencies on Tuesday, leaving it trading at its lowest level in four years and down 2.6 percent since the start of 2026. In Asia it fell further by 0.1 percent on Wednesday.
The UK pound and euro rose against the dollar to their highest levels since mid-2021. The common European currency rose 1.4 percent to $1.204, while sterling jumped 1.2 percent to $1.384.
The yen continued a three-day rally on Wednesday as traders in Tokyo reacted to Trump’s comments overnight. The yen hit a high of ¥152.3 against the dollar, close to its level since Sanae Takachi became prime minister in October, triggering a three-month selloff.
The latest blow to the currency market turmoil came when Trump was asked at an event in Iowa whether he was worried about the currency’s recent decline, and he replied: “No, I think it’s great.”
He said: “Look at the value of the dollar. Look at the business we’re doing. The dollar is there, the dollar is doing very well.”
Changes in other haven assets also accelerated on Tuesday. Silver prices rose more than 8 percent to $112 an ounce.
“Gold’s strength and dollar weakness reflect serious doubts over the chaotic, thoughtless policymaking by Trump,” said Trevor Greetham, head of multi-asset investments at Royal London Asset Management, citing the administration’s latest sweeping moves against Canada and South Korea.
Greetham said, “There are credible signs that the US may intervene to buy the yen, which suggests that policymakers are not concerned about the downside risks to the dollar.”
The New York Federal Reserve conducted a “rate check” on the yen late Friday at the request of the Treasury Department, a move that is often seen as a precursor to intervention.
Analysts at MUFG said the euro was “benefiting from its role as an anti-dollar”, as concerns loom over US policymaking.
“Irregular US policy means risk assets are performing well, but the dollar could suffer. ‘Sell America’ trade is a continuing theme. International investors are not convinced the dollar’s slide is over,” said Thomas Simons, chief US economist at Jefferies.
Analysts say that many issues are simultaneously affecting the American currency.
There is also a risk that parts of the federal government could be shut down by Saturday, amid concerns. Democratic senators have threatened to block support for a funding package that includes money for the Department of Homeland Security unless significant reforms are made to immigration enforcement.
There is also uncertainty among investors over who Trump will nominate to replace Jay Powell as Fed chair when his term ends in May, as well as tensions between the US and its NATO allies – which reached a fever pitch last week over Trump’s demands to annex Greenland.
“Greenland rekindled the dollar’s risk premium,” said Lefteris Farmakis, senior FX strategist at Barclays. “The reversal of the post-World War II order is a long-term negative for the dollar,” he said, “because it encourages investors to move out of dollar-denominated assets or reduce their dollar exposure.”
Many investors expect the dollar to weaken further in 2026, with JPMorgan analysts saying on Tuesday that “bearish reasons for the dollar remain intact”.
Meanwhile, economic and political developments across the Atlantic have allowed investors to take a more positive stance on the euro and sterling.
Recent data from Germany, the eurozone’s largest economy, has boosted sentiment among some investors, said Constantin Bolz, head of G10 FX strategy at UBS Global Wealth Management.
Germany’s economy grew 0.2 percent in 2025 – its first positive reading since 2022 – while a closely watched measure of activity in the construction sector rose to its highest level since 2022 in January.
“Europe has not been able to grow for the last 15 years. If this fiscal spending actually boosts growth, it should be supportive (for the euro),” Bolz said.
Additional reporting by Kate Duguid and George Steer in New York, Lauren Feder and Emily Herbert in Washington, Ian Smith and Rachel Rees in London and Leo Lewis in Tokyo
