Over the past month, Trump’s tariffs have caused market turbulence, and gold, a traditional safe-haven asset, has experienced a new wave of growth, surpassing the $3,000 per ounce mark. However, U.S. Treasury bonds, historically another key safe-haven asset, have underperformed, leading to a decline in the U.S. Dollar Index. Why has the market dynamic shifted in this way?

Derived from price quotations for short-term interest rate futures, the implied interest rate reflects where the market expects future interest rates to be. The implied rate is calculated using the formula: (100 – Price Quote of Interest Rate Futures) × 100%.