Gold Surges to Record High as Investors Exit Dollar and Treasuries Amid Inflation Shock

Markets took another sharp turn on Friday as gold prices hit an all-time high of $3,240 per ounce, driven by a broad selloff in U.S. Treasuries and the dollar. Mounting concerns over inflation and economic weakness have investors reassessing traditional safe haven strategies.

The shift comes on the heels of troubling data from the University of Michigan, which showed U.S. consumer sentiment falling to 50.8 in April—down from 57.0 in March and nearing the lowest levels since early 2022. Compounding the pressure, one-year inflation expectations surged to 6.7%, a level not seen since 1981.

As the data hit, yields on 10-year Treasuries soared past 4.55%, capping a 50 basis point rise in just one week. Simultaneously, the U.S. dollar index fell below 100, hitting a three-year low, as markets continued to price in both stagflation risk and geopolitical uncertainty tied to U.S.-China trade tensions.

Despite the turmoil, equity markets remained surprisingly composed. The Nasdaq traded modestly higher, up 0.6% at last check, following a week marked by extreme volatility.

Digital assets, meanwhile, rallied alongside gold. Bitcoin (BTC) rose 4% over the past 24 hours to hover above $82,000, with altcoins like Solana (SOL) and Avalanche (AVAX) gaining 6%. The CoinDesk 20 Index posted a 3% advance, suggesting investors are seeking diversification beyond traditional assets.

Interpreting the Moves: Risk Repricing or Technical Dislocation?

The selloff in Treasuries and the greenback—normally the go-to destinations during times of stress—has led some analysts to question whether the market is reacting to deeper economic cracks or simply over-leveraged positioning.

“U.S. bonds and the dollar are behaving unusually for safe havens,” noted macro analyst Noelle Acheson. “The reaction appears isolated to U.S.-linked assets—others like gold and crypto are seeing strong inflows.”

Billionaire investor Bill Ackman echoed the view that positioning, not fundamentals, is the primary driver behind the chaos.

“Technical pressures are distorting short-term market behavior,” Ackman posted on X. “Markets have become poor tools for interpreting policy shifts in real time.”