Summary:
Gold hovered above $3,200 near record highs Monday as the dollar stayed near a 3-year low, driving investors to the metal’s safe haven appeal.
Gold hovered around record high above $3,200 mark on Monday, as the US dollar was still near a three-year low. Investors have flocked to the safety of the yellow metal in a bruising week.
Traders now bet that the Fed will resume cutting rates in June and see around 90-bp cuts by the end of 2025. It is set to keep interest rates on hold to minimise tariff risks, even if the labour market softens further.
Trump exempted smartphones, computers, and other tech devices and components from his reciprocal tariffs – a cheering news for the global tech sector, new guidance from the CBP issued Friday shows.
The White House said it ensures that companies have time to move production to the US. Many analysts still expect the administration's increased use of tariffs will bring both higher inflation and slower economic growth.
Physically backed gold ETFs registered the largest quarterly inflow in three years in January-March, 2025, data from the WGC showed. The odds are that it enjoys a second consecutive year of net inflow.
The demand for gold in both jewellery and bullion forms is expected to remain strong. Retailers that can adapt to consumer preferences and market conditions are well-positioned to thrive in this environment.
Bullion remains in the overbought territory, though technical indicators have been outweighed by Trump's mood change. A steep pullback is likely if the price fails to hold above $3,210.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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