Gold Rebounds Above $5,000 After US Downs Iran Drone; Wegovy Maker Warns of Price Cuts
Geopolitical tensions and economic pressures rippled through global markets on Wednesday, driving fluctuations in gold prices and prompting warnings from the maker of the weight-loss drug Wegovy. Gold prices rebounded above $5,000 an ounce after the U.S. military confirmed it had downed an Iranian drone, while Novo Nordisk, the Danish company behind Wegovy and Ozempic, saw its shares plunge following warnings of "painful" price cuts.
The price of gold, often seen as a "safe haven" for investors during times of uncertainty, jumped to $5,061 per ounce, according to BBC Business. This surge followed days of sharp falls and left the price of gold around $80 higher than the same time a year ago. The increase was attributed to reignited geopolitical tensions after the U.S. downed an Iranian drone, according to a US military spokesman.
Meanwhile, shares in Novo Nordisk plummeted 18% after the company warned of significant price cuts. BBC Business reported that chief executive Maziar Mike Doustdar described the pricing pressures as "unprecedented" and "painful." The company expects profits and sales to fall by as much as 13%. Novo Nordisk cited a deal made with former US President Donald Trump to lower the cost of weight-loss drugs for Americans as a contributing factor to the financial strain. The company had already announced thousands of job cuts amid warnings of increasing competition and the impact of the pricing pressures.
In other economic news, credit card interest rates in the U.S. are hovering near record highs, with the average interest rate on a commercial credit card nearing 21%, according to Federal Reserve data, as reported by CBS News. This is nearly double the rate seen 10 years ago. Michael Desimone, chief lending officer at Citadel Credit Union, stated, "Today's credit card rates are near historic highs. While rates have been rising for years, the current environment reflects a prolonged period of elevated borrowing costs that consumers haven't experienced in decades."
In other news, negotiations between Harvard University and the White House faced uncertainty after former President Trump publicly attacked the Ivy League school on social media. The New York Times reported that Trump had previously indicated a willingness to drop his demand for a $200 million payment from Harvard to the government in exchange for ending his pressure campaign against the university. However, after a New York Times report about the potential deal, Trump posted on Truth Social, signaling a change of heart.
On a more positive note, global statistics indicate that humans are living longer than in past generations. According to Fox News, life expectancy in the U.S. rose to 79 years in 2024, marking an all-time high, according to CDC data, with 2025 lifespan numbers expected to improve further. This increase is attributed to a decline in deaths from COVID, unintentional injuries like drug overdoses, heart disease, and cancer.
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