Dollar, Swiss Franc and German Bonds Lead Safe-Haven Shift Amid AI and Energy Turmoil
Investors are seeking safe-haven assets as AI-driven tech sell-offs, the Iran war and sovereign-debt concerns pressure markets, but traditional havens are delivering mixed results.
Global investors are turning to safe-haven assets after AI-related tech stocks fell sharply, the Iran war kept energy prices elevated and sovereign-debt worries persisted. The dollar has appreciated roughly 4% since late February, reinforcing its role as a refuge despite lingering concerns about the United States' $40 trillion debt load. The Swiss franc gained over 2% against the euro this month, driven by doubts over France's public finances and election uncertainty in France and Spain, while its zero-percent rates make it attractive for carry-trade strategies.
German Bunds emerged as a relative winner, with yields dropping as investors sought the triple-A rated security amid broader bond market turmoil. Short-dated government bonds are favored for their lower sensitivity to debt concerns, and gold continues to trade around $4,175 per ounce, supported by central-bank buying and a tense geopolitical backdrop.
