ECB Concerned as U.S. Considers Loosening Financial Regulations; Gold Reaches Record High Amidst Geopolitical Tensions

The European Central Bank (ECB) is closely monitoring potential deregulation of the U.S. financial system, expressing concern over the implications for the EU financial sector. Olli Rehn, first vice-chair of the European Systemic Risk Board (ESRB) and governor of Finland's central bank, stated that the ECB is "vigilantly assessing" the risks associated with the Trump administration's plans to curtail and combine the power of banking regulators. Rehn urged lawmakers to support legislative changes to improve oversight of Europe's financial system. Simultaneously, gold prices have surged to a new record high, reaching $2,954.37 per ounce. This surge is attributed to geopolitical tensions, including uncertainties surrounding U.S. support for Ukraine in the conflict with Russia, and speculative purchases by central banks. Goldman Sachs has raised its year-end price target for gold to $3,100, anticipating further central bank accumulation. Year-to-date, gold has increased by 13%, reflecting its continued appeal as a safe-haven asset.