Trump’s tariff threat sank the dollar; gold hit a 6-week high.

Last Friday, US President Trump once again threatened to escalate the trade war and suggested imposing a 50% tariff on the European Union starting from June 1st. The US dollar index continued to decline during the day and fell to around the 99 level, ultimately closing down 0.83% at 99.10. The benchmark 10-year US Treasury yield closed at 4.518%; The two-year US Treasury yield, which is more sensitive to monetary policy, closed at 4.004%. Last Friday (May 23), US President Trump proposed a 50% tariff on European goods, reopening a new front in global trade tensions and triggering a new wave of market uncertainty. Investors are seeking safe haven in gold, with gold prices surging over 2% last Friday, hitting their best performance in six weeks. Or due to some investors choosing to cover their short positions before the US holiday, the two crude oil companies rebounded, rising more than 1% during the day. WTI crude oil first fell and then rose, and quickly rose above $61 during the US trading session, ultimately closing up 1.51% at $61.56 per barrel; Brent crude oil closed up 1.35% at $64.4 per barrel.