Traditional safe havens including Treasuries, the yen, Swiss franc, and gold have failed investors this week as market turmoil upended conventional wisdom. The dollar emerged as one of the few major assets to rally, signaling how quickly market dynamics can shift when central bank policies and economic growth expectations change.

US government debt, normally the world's safest asset during turmoil, saw 10-year yields jump 20 basis points this week - their biggest move since April's tariff drama. The reversal from last month's sharp decline reflects traders pricing in fewer interest rate cuts as inflationary threats from soaring oil and gas prices dominate sentiment. Swaps now price between one and two quarter-point reductions, down from three a week ago.

Gold fell 3.5% this week, weighed down by a stronger dollar and expectations of higher interest rates. The metal's 54% rally since mid-August has turned it into a speculative hotbed with exceptional volatility. Similar dynamics played out after Russia's invasion of Ukraine, when energy price surges and rising rate expectations weakened gold. Meanwhile, Japan's yen dropped 1% versus the dollar as the country faces stagflation risks from its heavy reliance on Middle East oil and rising wage demands.