Global markets tumble as VIX hits 5-year high, gold surges on safe-haven demand

Global markets reeled on Wednesday under intense selling pressure, with the Volatility Index (VIX) -- often dubbed the "fear index" -- surging to its highest level in five years, while gold prices jumped over 2% as investors rushed to safe havens.

The turmoil followed heightened fears of a global recession, triggered by sweeping new tariffs announced by the Trump administration, which sparked uncertainty across key financial markets.

The VIX, a widely watched measure of market volatility, rose to the 50 level during Wednesday's session -- its highest since the COVID-19 pandemic -- and was hovering around 48 as of 0945 GMT, reflecting growing investor anxiety.

In the US, stock markets posted double-digit losses over the past two days, marking the worst slide since President Donald Trump returned to office in January. The combined market value loss reached an estimated $6 trillion.

Gold, a traditional safe-haven asset during market upheaval, saw a significant uptick. The price of gold rose to $3,046.10 per ounce, gaining 2.14% on the day, as investors fled riskier assets in favor of more stable stores of value.