Global Markets Get Hopeful as Tensions Ease
(MENAFN) In the latter part of the year, global financial markets are anticipating a decline in both tariff-related uncertainties and geopolitical conflicts, accompanied by a noticeable trend toward riskier investment options, according to an expert who spoke with a news agency.
During the initial half of the year, a significant portion of the unpredictability stemmed from the United States' protectionist trade strategies.
This instability was compounded by shifting projections from central banks and escalating geopolitical friction.
The investment landscape was negatively affected by U.S. President Donald Trump’s trade strategies and the Federal Reserve's easing monetary policies.
These developments were later intensified by rising tensions in the Middle East and ongoing trade discussions between China and the United States.
As a result, many investors turned to traditionally secure assets like gold. The price of gold per ounce soared to a record-breaking USD3,500 during this time.
However, with tensions beginning to subside and a more conciliatory tone emerging from Washington on trade matters, a renewed sense of optimism is beginning to take hold in global markets as the second half of the year progresses.
Tonguc Erbas, the general manager of the Turkish financial services firm Ahlatci Portfoy, explained that the United States holds the largest reserves of gold, and the elevated prices reflect its value as a financial backstop for national debt.
This, he noted, partly explains the swift actions taken by Trump in response to international developments.
“He took steps on tariffs, he had demands on geographical regions, and he very quickly withdrew after high tension — we saw a similar approach to the Israel–Iran conflict,” Erbas remarked.