--- title: "Gold eyes new highs as investors brace for U.S.-Russia talks and market volatility" description: "Asian stocks fluctuate amid tariff threats; S&P 500 hits record high and investors eye US-Russia talks." type: "NewsArticle" publisher: "Daily Maverick" site: "https://www.dailymaverick.co.za" section: "MARKETS WRAP" author: "Reuters" author_url: "https://www.dailymaverick.co.za/author/reuters/" canonical_url: "https://www.dailymaverick.co.za/article/2025-02-19-gold-eyes-new-highs-as-investors-brace-for-u-s-russia-talks-and-market-volatility/" published: "2025-02-19T05:21:09" updated: "2025-02-19T05:21:11" lang: "en-ZA" word_count: 728 --- # Gold eyes new highs as investors brace for U.S.-Russia talks and market volatility > Asian stocks fluctuate amid tariff threats; S&P 500 hits record high and investors eye US-Russia talks. By Reuters · Published 19 February 2025, 07:21 SAST · Updated 19 February 2025, 07:21 SAST ## Key points - As Asian stocks teeter on the edge of uncertainty amidst Trump’s tariff tantrums, investors are caught between the allure of record highs in the S&P 500 and the siren call of gold, all while waiting for U.S.-Russia talks to either calm the market or add more fuel to the geopolitical fire. - Asian stocks fluctuate as tariff threats from Trump dampen investor sentiment, despite record highs in the S&P 500 and European markets. - Hong Kong's Hang Seng Index dips 0.3% as profit-taking occurs after a strong start to the year. - Gold prices hover near last week's record high, driven by safe-haven demand amid geopolitical tensions. - Investors await outcomes from U.S.-Russia talks, with implications for oil supply and market stability. ## Content - Asian stocks waver as tariff threats sour sentiment - Hong Kong stocks slip on profit taking - Benchmark S&P 500 reaches all-time high - Gold chases record high touched last week - Investors wait on U.S-Russia talks By Chibuike Oguh and Ankur Banerjee NEW YORK/SINGAPORE, Feb 19 (Reuters) - Asian stocks wavered on Wednesday after the S&P 500 and European shares ended at record highs, in the face of US President Donald Trump's latest tariff threats on auto, semiconductor and pharmaceutical imports. Since Trump's inauguration four weeks ago, Trump has imposed a 10% tariff on all imports from China, on top of existing levies. He has also announced, and delayed for a month, 25% tariffs on goods from Mexico and non-energy imports from Canada. Trump told reporters on Tuesday that sectoral tariffs on pharmaceuticals and semiconductor chips would start at "25% or higher, and it will go very substantially higher over the course of a year." He intends to impose similar tariffs on autos as soon as April 2. Market reaction to Trump's threats were muted as investors increasingly see them as bargaining tools, although the US dollar was on the front foot as geopolitical worries, including tense Russia-Ukraine negotiations boosted safe-haven flows. "I think people are still trying to digest everything going on with not only tariffs and how that could impact things but also general valuations," said Sandy Villere, portfolio manager at Villere & Co in New Orleans. "We feel like the market is pretty expensive." "You've got not only the tariff situation, which I think is going to be more sabre-rattling and negotiating than anything long-term," Villere said. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.29% after touching a three-month high earlier in the session. Chinese tech stocks have been on a tear recently as the emergence of AI startup DeepSeek and a meeting between Xi Jinping and business leaders in the sector lift sentiment. "Green shoots are emerging in China’s economy and DeepSeek is injecting a shot of adrenaline into the sector," said Thomas Rupf, co-head Singapore and CIO Asia at VP Bank. "While trade risks persist, tech optimism remains strong as the prospect of low-cost AI applications drives a reassessment of growth potential." Hong Kong's Hang Seng Index fell 0.3% as investors pocketed some profits. The index has risen over 13% so far in 2025, jostling with Germany's DAX index for best-performing market in the world. KIWI CLIPPED The New Zealand dollar fell 0.35% to $0.5684 after the country's central bank flagged a steeper trajectory for future rate reductions following a 50 basis-point cut to 3.75% on Wednesday. The latest easing was in line with expectations but the central bank is now forecasting the cash rate will drop to 3.4% in the second quarter of 2025 and to 3.1% by the end of 2025, lower than November's expectations. The Australian dollar eased 0.11% to $0.6347 a day after the central bank delivered its first rate cut since 2020, but cautioned about the prospects for further easing. Overnight, the US benchmark S&P 500 squeaked past its previous record closing high as all three Wall Street indexes seesawed between gains and losses for much of the session before rising in the closing minutes. European shares ended at a record high, with banking and defence stocks among the top gainers. The pan-European STOXX 600 index hit an all-time high of 557.96. European leaders vowed to step up support for Ukraine as the U.S. and Russia [held bilateral talks](https://www.reutersconnect.com/all?search=all%3AL3N3P90CM&linkedFromStory=true) on the war this week. Investors also hope this weekend's [German election](https://www.reutersconnect.com/all?search=all%3AL2N3P704T&linkedFromStory=true) will lead to economic stimulus. Minutes from the U.S. Fed's January meeting, when the central bank held borrowing costs at 4.25% to 4.5%, are due later on Wednesday. That follows [hawkish](https://www.reutersconnect.com/all?search=all%3AL1N3P312D&linkedFromStory=true) comments from Fed Chair Jerome Powell in testimony to Congress last week and hot consumer price data. Brent crude oil LCOc1 rose 0.11% to $75.92 a barrel as traders awaited the outcome of the U.S.-Russia talks in Riyadh and speculated about potential supply increases if Washington agrees to [abandon sanctions](https://www.reutersconnect.com/all?search=all%3AL2N3P902O&linkedFromStory=true) on Russian oil. Spot gold XAU= was little changed at $2,933 an ounce, stalking the record high it touched last week on safe haven demand. (Reporting by Ankur Banerjee and Tom Westbrook in Singapore, Chibuike Oguh in New York and Naomi Rovnick in London; Additional reporting by Nell Mackenzie in London; Editing by Neil Fullick)