USD/CNY faces pressure from Trump's 155% tariff threat, gold hits records

USD/CNY volatility is surging as markets digest former President Trump's threat of a 155% tariff on China starting November 1, signaling potential escalation in US-China trade tensions. The announcement has triggered risk-off sentiment across Asian markets, with the offshore yuan weakening 0.4% against the dollar to 7.2850. Safe-haven flows have pushed gold prices to fresh record highs above $2,750/oz, reflecting growing geopolitical uncertainty. The tariff threats, if implemented, could significantly impact global supply chains and inflation expectations, potentially forcing central banks to reassess their monetary policy stances. Technical indicators show USD/CNY testing resistance at 7.3000, with a break above potentially accelerating moves toward 7.3500. Traders are also monitoring crypto market expansion as alternative hedging instruments gain traction amid traditional market uncertainty. The escalating trade rhetoric could support further dollar strength against emerging market currencies.