Markets waver as gold nears records and OpenAI’s IPO buzz grows louder
Financial markets showed mixed signals on Thursday as geopolitical tensions and corporate moves shaped trading. Gold remained near record highs, while oil prices slipped slightly. Meanwhile, speculation around OpenAI’s potential IPO continued to draw attention, with valuations possibly exceeding $1 trillion in the coming years.
In Frankfurt, the Dax rebounded after recent losses, rising 1.4% in early trading. Investors also watched currency shifts, with the euro gaining ground against the dollar.
The Dax opened higher on Thursday at around 24,890 points, recovering 1.4% from its previous close. The index had faced sharp declines earlier in the week, partly due to an unsustainable rally with little hedging in place. Even minor news shifts now trigger significant swings, reflecting heightened market sensitivity.
Trump-related volatility returned to Frankfurt trading floors, mirroring a pattern seen over a year ago. His aggressive rhetoric initially spooked investors, causing losses, before later softening allowed markets to rebound. This so-called 'TACO trade'—where sharp drops are followed by recoveries—has become a familiar feature of his presidency. Gold prices stayed close to all-time highs, trading at $4,828 per troy ounce (€132.81 per gram) in early deals. The slight dip of 0.1% did little to ease concerns, as the metal’s surge reflects deep geopolitical unease among investors. Oil, however, edged lower, with Brent crude falling 0.4% to $64.97 per barrel by 9:00 a.m. German time. In currency markets, the euro strengthened marginally against the dollar, reaching $1.1688. The dollar, in turn, traded at €0.8556, showing modest movement in early European trading. OpenAI’s potential IPO remains a major talking point, with reports suggesting a valuation above $1 trillion. Major backers include Microsoft (27% stake, $13 billion invested), Nvidia, and SoftBank, which led a $40 billion funding round in April 2025. Talks are also underway with Abu Dhabi funds like MGX, with Amazon possibly joining. A public debut could arrive as early as late 2026 or 2027, fuelling retail investor excitement and short-term gains for tech stocks.
The day’s trading highlighted ongoing market fragility, with geopolitical risks keeping gold near peak levels. The Dax’s rebound suggests some recovery, but volatility tied to political rhetoric remains a concern. OpenAI’s looming IPO continues to attract attention, with major tech players positioning themselves for what could be one of the largest market debuts in history. Investors are now watching for further signals on timing and valuation.
