Global equity indices declined amid rising geopolitical anxiety, with gold prices surging to $2,418 per ounce as investors sought refuge from uncertainty. The S&P 500 dropped 1.7%, while the Nasdaq Composite fell 2.3%.
- S&P 500 fell 1.7% to 5,142.31
- Nasdaq Composite dropped 2.3% to 16,890.12
- Gold reached $2,418 per ounce
- Silver rose 3.2% to $34.60 per ounce
- U.S. 10-year Treasury yield rose to 4.69%
- ExxonMobil and Chevron declined 2.8% and 2.5%, respectively
Major global stock indices reversed gains from earlier in the week as heightened geopolitical concerns triggered a flight to safety. The S&P 500 closed at 5,142.31, marking a 1.7% decline, while the Nasdaq Composite dropped 2.3% to 16,890.12. European markets mirrored the trend, with the FTSE 100 falling 1.4% and Germany’s DAX losing 1.6%. The retreat was driven by renewed speculation surrounding strategic mineral access in the Arctic region, particularly following a recent diplomatic exchange involving Greenlandic resource rights. Gold, traditionally viewed as a safe-haven asset, surged to a new intraday high of $2,418 per ounce, its strongest level since late 2023. The price increase reflects growing investor concern over supply chain disruptions and energy security, especially in light of geopolitical friction over Arctic resource zones. The U.S. dollar index also rose 0.8% to 104.75, indicating increased demand for reserve currencies during periods of risk aversion. The rally in gold extended to other precious metals, with silver climbing 3.2% to $34.60 per ounce. Meanwhile, U.S. Treasury yields rose modestly, with the 10-year note yield spiking to 4.69% as investors adjusted expectations for Federal Reserve policy amid shifting macroeconomic signals. Energy stocks were among the hardest hit, with ExxonMobil dropping 2.8% and Chevron declining 2.5% as oil prices eased to $78.30 per barrel amid reduced demand forecasts. Market participants are now closely monitoring upcoming testimony from the U.S. Secretary of State on Arctic policy and the European Commission’s draft framework for critical minerals. Analysts warn that continued volatility could persist until clarity emerges on international resource governance.