Global Markets Brace for Relief on Tariffs, Geopolitical Tensions Ease
(MENAFN) Global financial markets are anticipating reduced uncertainty surrounding tariffs and geopolitical risks in the second half of the year, with a noticeable pivot toward higher-risk assets, an expert told media.
The first half of the year was marked by heightened volatility, largely fueled by the United States’ protectionist trade measures, shifting signals from central banks, and escalating global tensions.
Investor sentiment took a hit amid U.S. President Donald Trump’s aggressive trade stance and the Federal Reserve’s monetary easing, compounded by flare-ups in the Middle East and fraught tariff negotiations between Washington and Beijing.
This climate drove investors toward traditional safe havens—particularly gold, which soared to an unprecedented $3,500 per ounce. However, recent signs of de-escalation and a more conciliatory tone from the U.S. on tariffs are restoring cautious optimism in global markets as the second half unfolds.
Tonguc Erbas, general manager at Turkish financial firm Ahlatci Portfoy, explained that elevated gold prices reflect the asset’s role as a store of value, especially amid concerns over U.S. debt. He added that the U.S. holds the world’s largest gold reserves, which makes its policy decisions on tariffs and international conflicts particularly impactful.
“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,” said Erbas, referencing Trump’s rapid policy shifts.
Erbas noted that recent U.S. strategies appear aimed at weakening the dollar on the global stage, pointing to the currency’s sharpest six-month decline in half a century.
“I think the US will reach a middle ground agreement on tariffs with countries and I think they have a medium-term plan to eliminate geopolitical risks,” he said.
On monetary policy, Erbas suggested that Trump may hold off on replacing the Federal Reserve chair for now, despite pushing for interest rate cuts.
“I think the Fed will cut rates in September and there will be two rate cuts this year,” he said. “The Fed wants to monitor the impact of tariffs, so the Fed may resume rate cuts with the expectation that Trump will continue a more moderate strategy on tariffs.”
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
