The sell-off in US stock indices continued at the beginning of the week, with trading on Tuesday (February 25, 2025) showing significant declines. The Nasdaq dropped by 233 index points on Monday to reach 21,427, and by 7:00 AM WIB on Tuesday, it further declined to 21,366.
The Nasdaq has faced substantial pressure since last Friday following the release of data from S&P Global indicating a contraction in the US services sector for the first time in over two years. This sector is a crucial component of the US economy, accounting for more than 70% of economic growth and 80% of total employment. This news has raised concerns about a potential slowdown in the US economy moving forward.
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The situation worsened when US President Donald Trump announced that the proposed increase in import tariffs by 25% from Canada and Mexico would proceed starting next week. This statement emphasizes the growing risk of a trade war, which could exacerbate the economic conditions in the United States.
In contrast to the Nasdaq’s struggles, Gold has benefited from the current climate. On Monday, Gold reached a historic high of $2,956.21 per troy ounce and remained close to that level on Tuesday morning.
The risks of an economic slowdown in the US, alongside escalating trade tensions and the plummeting US stock indices, have enhanced Gold’s appeal as a safe haven. As a result, there is potential for Gold prices to rise further and set new records.
