Market Tremors: Gold Plunge and Geopolitical Uncertainty Rock Global Shares

Global stock markets experienced a downturn on Wednesday as stretched valuations prompted investors to book profits, leading to a significant drop in gold prices and shares. The precious metal, once driven by geopolitical tensions and economic uncertainty, saw an over 5% decline, leaving investors uneasy.

Geopolitical factors added to the jitters, with a summit involving U.S. President Donald Trump and Russian President Vladimir Putin being postponed, and uncertainty looming over a potential meeting between Trump and Chinese President Xi Jinping. Analyst Tony Sycamore noted the "massive" overvaluation in markets, warning of potential upcoming market tremors.

Attention also turned towards monetary policy, with expectations set on upcoming decisions by the Federal Reserve and the Bank of Japan. Meanwhile, Japan's new PM Sanae Takaichi's anticipated policies are driving positive market sentiment, although Japan's yen suffered recent losses. Oil prices moved up slightly, offering a mixed outlook for futures investors.