1.1. U.S. Avoids Government Shutdown

The U.S. Senate has passed a temporary budget bill, ensuring government operations continue. However, ongoing budget disputes pose future fiscal policy challenges.

1.2. Rising Tensions in the Red Sea

Houthi forces continue to attack vessels in the region, threatening global supply chains. In response, the U.S. military has launched airstrikes on key command bases. The situation remains highly uncertain.

2. Financial Market Movements

2.1. Gold Hits Record High of $3,004/oz!

Gold prices have surged due to inflation concerns, geopolitical instability, and uncertain fiscal policies. Experts predict further increases, positioning gold as the ultimate safe-haven asset.

Why is gold surging?

• Rising inflation: As fiat currencies lose value, gold demand increases.
• Geopolitical turmoil: Conflicts in Ukraine, the Red Sea, and U.S.-China tensions push gold prices higher.
• Uncertain financial policies: The Federal Reserve (Fed) has maintained interest rates but may cut them later this year, affecting investment flows.

2.2. U.S. Financial Policies Impacting USD

Recent U.S. tariff and trade adjustments are undermining economic confidence, causing the dollar to weaken. If this trend persists, currencies like the Euro and the Chinese Yuan may gain strength.

2.3. Global Stock Market Volatility

The Fed is expected to hold interest rates steady this week, but markets anticipate a cut later this year. Recession fears are making investors more cautious, leading to major stock market fluctuations.

3. Other Notable Events

3.1. Tornadoes Devastate the U.S.

Severe tornadoes have swept through eight U.S. states, killing at least 34 people and leaving hundreds of thousands without power. Emergency response teams are working rapidly to provide relief.

3.2. The Red Sea Becomes an International Hotspot

Security agencies warn of continued risks in the region. The global community is closely monitoring the situation to seek stabilization solutions.

Investment Insights

With gold prices at record highs and financial markets in flux, investors should consider holding gold as part of their portfolio for wealth protection, closely monitor USD movements to adjust strategies accordingly, and diversify investments to minimize risk.

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