The global financial markets have been quite unstable lately due to recent changes in the US trade policies.

Concerns were raised when President Donald Trump announced new tariffs, particularly on automakers.

Last week, investors faced tough times after the US decided to impose tariffs on automakers, which worsened when the US significantly increased these tariffs. China quickly responded with its own measures.

As the events unfolded, it led to major losses in the stock market, with trillions of US dollars disappearing in what could be recorded as one of the largest drops ever.

Oil prices also fell, as fears grew about a potential slowdown in the global economy, which would reduce demand.

US bonds, usually seen as a safe investment, faced pressure as their value dropped.

Initially, gold prices decreased due to panic selling, but last week I wrote that the fundamentals for gold have not changed. While as the prices were falling, gold became more appealing.

There were also rumours circulating that China must be discreetly reducing its US Treasury bonds.

According to January’s Federal Reserve data, China holds approximately $ 760 billion in US Treasury bonds, making it the second-largest holder after Japan, which has nearly $ 1 trillion.

If it is true........

© Business Recorder