Corporate Profits Surge 5.9% as US Economy Shows Resilience

The US economy grew 2.4% in Q4 2023, better than initially reported. Corporate profits jumped 5.9% – the biggest increase in over two years – with profit margins reaching 15.9%, well above pre-pandemic levels. This could help companies absorb future tariff costs without raising consumer prices. While consumer spending growth was revised down to 4%, improvements in exports, government spending, and business investment boosted overall growth. Despite this strong performance, major financial institutions predict slower growth in 2025 due to concerns about President Trump’s trade policies.

Silver Rises to $34 as Trump’s Auto Tariffs Fuel Uncertainty

Silver prices (XAG/USD) have risen to nearly $34 during European trading as President Trump’s announcement of permanent 25% tariffs on imported vehicles sparked global economic concerns, enhancing silver’s status as a safe-haven asset. These tariffs, effective April 2, will significantly impact top auto exporters to the US including Mexico, Canada, Japan, South Korea, and Germany. The measures have also weakened the US Dollar as domestic economic consequences are anticipated – US automakers may need to relocate manufacturing domestically, potentially increasing car prices due to higher labor costs and reducing household purchasing power. Investors are now focused on Friday’s Personal Consumption […]

EU Launches €22.5 Billion Critical Minerals Strategy to Break China Dependency

The European Union is ramping up efforts to secure critical minerals with 47 strategic projects across 13 member states. EU Commissioner Stéphane Séjourné recently visited a Greek aluminum plant that will soon extract gallium, a key metal used in semiconductors and other high-tech applications. This $24.2 billion investment initiative aims to reduce Europe’s dependence on China and other countries for essential materials used in electric vehicles, electronics, and defense systems, addressing vulnerabilities exposed by recent global events including the pandemic and trade disputes.

Goldman Sachs Raises Gold Target to $3,300 as Central Banks Keep Buying

Goldman Sachs has raised its gold price forecast for the end of 2025 from $3,100 to $3,300 per ounce. This positive outlook is based on two main factors: – First, more investors are buying gold through ETFs, a trend expected to continue as the Federal Reserve is predicted to cut interest rates this year and in 2026. – Second, central banks, especially in China and other Asian countries, are steadily purchasing gold to increase their reserves. Gold is currently trading at $3,060.70, having risen 36% over the past year. While a Russia-Ukraine peace deal might cause temporary selling pressure, Goldman […]

Jobless Claims Edge Down as Labor Market Withstands Hiring Slowdown

U.S. jobless claims fell slightly to 224,000 last week, just below forecasts. Despite slower hiring, low layoffs continue to support labor market stability. President Trump’s trade policies and federal government downsizing plans are creating economic uncertainty. While federal worker claims haven’t significantly increased, the D.C. metro area is seeing more claims, likely from affected contractors. Elon Musk’s Department of Government Efficiency has fired thousands of federal workers, though courts have ordered many reinstated. Continuing claims decreased to 1.856 million, and economists expect the March unemployment rate to remain at 4.1%.

As Confidence Wanes, ‘Uncertainty’ Dominates Fed Communications and Corporate Forecasts

The Federal Reserve has increasingly adopted the word “uncertainty” in its communications, with Chair Powell using it 22 times after the latest rate decision and other officials following suit. This uncertainty stems largely from Trump’s planned tariffs, affecting the Fed’s inflation and growth projections while maintaining expectations for two rate cuts this year. The business sector is echoing these concerns, with companies like FedEx and Delta citing uncertainty when lowering forecasts, while consumer confidence has dropped to a four-year low amid policy apprehensions.

Markets Digest 25% Foreign Auto Tariffs as Treasury Yields Climb

U.S. Treasury yields moved higher on Thursday with the benchmark 10-year Treasury yield increasing more than three basis points to 4.371% and the 2-year yield rising slightly to 4.012%. Investors are processing President Trump’s announcement of new 25% tariffs on all foreign-manufactured automobiles, though cars with U.S.-made parts will be exempt. These tariffs add to growing concerns about potential economic impacts amid signs of weakness in the U.S. economy, including consumer confidence hitting a 12-year low. However, the latest unemployment data offered some reassurance, with initial jobless claims at 224,000 for the week ending March 22 (down 1,000 from the […]

Global Auto Stocks Plunge as Trump Imposes 25% Vehicle Tariffs

President Trump’s announcement of 25% tariffs on imported vehicles and auto parts caused global market disruptions on Thursday. Stock markets in Europe fell while Wall Street futures pointed lower, with major automakers like Volkswagen, BMW, GM, and Ford seeing significant share price drops. Investors sought safety in gold, which rose to near-record levels as concerns mounted about the tariffs’ potential impact on global economic growth and inflation. Trump indicated next week’s broader “reciprocal tariffs” might be “lenient.”

Goldman Sachs Boosts Gold Target to $3,300

Goldman Sachs has raised its gold price forecast to $3,300 an ounce by the end of 2025, up from their previous target of $3,100 announced just last month. This bullish outlook is driven by stronger-than-expected central bank purchases, particularly from emerging markets, which analysts now estimate will average 70 tons monthly (up from 50 tons). The bank also cites solid inflows into gold-backed ETFs as investors seek hedges amid economic uncertainty created by President Trump’s trade and foreign policy agendas. Gold has already rallied 15% this year, recently breaking the $3,000 per ounce mark for the first time.

Goldman Sachs Boosts Gold Target to $3,300

Goldman Sachs has raised its gold price forecast to $3,300 an ounce by the end of 2025, up from their previous target of $3,100 announced just last month. This bullish outlook is driven by stronger-than-expected central bank purchases, particularly from emerging markets, which analysts now estimate will average 70 tons monthly (up from 50 tons). The bank also cites solid inflows into gold-backed ETFs as investors seek hedges amid economic uncertainty created by President Trump’s trade and foreign policy agendas. Gold has already rallied 15% this year, recently breaking the $3,000 per ounce mark for the first time.