Rate Cut Predictions Vary Wildly Following Trump’s Tariff Announcement

President Trump’s new tariffs—the highest in over 100 years—have put the Federal Reserve in a tough spot. These tariffs could cause two problems at once: higher prices for consumers and slower economic growth, with some economists even warning about a possible recession. Wall Street traders think the Fed will cut interest rates four times this year starting in June, believing that a slowing economy will be the bigger concern. But experts disagree on what will happen: Morgan Stanley predicts no rate cuts because of inflation risks, while other analysts see many different possibilities. Fed leaders, including Vice Chair Philip Jefferson, […]

Gold’s Rally Interrupted: Precious Metal Falls Victim to $2.5 Trillion Market Wipeout

Gold experienced a significant decline of 2.2% on Friday, reaching $3,044.28 per ounce as it became caught in the broader market selloff following President Trump’s unexpectedly aggressive tariff announcements. This drop erased the week’s gains, despite gold having reached a new all-time high just two days earlier. While gold is traditionally viewed as a safe-haven asset during economic turbulence, it can still be pulled into major selloffs when investors need to raise cash to offset losses in other investments. Despite this setback, many major financial institutions including HSBC, Goldman Sachs, and Bank of America remain bullish on gold’s prospects, pointing […]

Powell: Fed “Well Positioned to Wait” Despite Larger-Than-Expected Tariff Impact

Federal Reserve Chair Powell now warns that Trump’s new global tariffs will have “significantly larger than expected” economic effects, causing higher inflation and slower growth. This marks a shift from his March position that tariff impacts would be temporary. Despite these concerns, Powell emphasized the Fed will remain patient before adjusting interest rates, stating they are “well positioned to wait for greater clarity.” His priority is preventing temporary price increases from becoming a persistent inflation problem. Markets responded negatively during his remarks, with stocks falling and bonds rising. Powell believes policy uncertainty should decrease within a year, making the actual […]

Market Plunge Approaches Circuit Breaker Threshold as Tariff Fears Intensify

The U.S. stock market is experiencing a major two-day drop following President Trump’s announcement of new tariffs. The S&P 500 fell 4.8% on Thursday and continued falling over 5% on Friday, reaching as low as 5,101.75. However, it would need to fall further to 5,018.76 (a 7% drop) to trigger a “circuit breaker.” Circuit breakers are automatic pauses in trading that kick in during steep market declines. They were created after the 1987 market crash to prevent panic selling. There are three levels: a 7% drop pauses trading for 15 minutes, a 13% drop does the same, and a 20% […]

Gold Market Sees Opposing Forces: Chinese Buying vs. Indian Hesitancy

Chinese gold demand is rising as trade war fears push investors toward this safe-haven asset. Chinese dealers now charge $6-$13 per ounce above global prices – a notable shift from last week when gold traded between a $4 discount and $1 premium. Analyst Ross Norman explains this as a “two-way market” where uncertainty brings in new buyers while others sell to lock in profits from record prices. New gold bars are selling particularly well. Meanwhile, Indian buyers are holding back, offering discounts up to $20 per ounce (improved from $33 discounts last week) as they wait for prices to stabilize. […]

Senate GOP Advances Trump’s $6.5 Trillion Economic Package Amid Market Turbulence

Senate Republicans have started work on President Trump’s economic package, nicknamed his “big, beautiful bill.” This plan includes $4.5 trillion in tax breaks and $2 trillion in spending cuts. The Senate voted 52-48 to begin drafting their version, with only Republican Senator Rand Paul voting against it alongside all Democrats. This action follows the House Republicans’ proposal from last month. This economic package comes at a difficult time, as markets are still reacting to Trump’s new tariffs. While Democrats don’t have enough votes to stop the bill, they plan to use procedure rules to slow it down. Democrats argue the […]

JPMorgan Questions Crypto’s Safe Haven Status

JPMorgan’s recent analysis casts doubt on Bitcoin’s status as “digital gold.” Investors appear to be reassessing their inflation protection strategies, with funds flowing from Bitcoin ETFs to gold-backed alternatives. Gold has reached record highs above $3,100 per ounce and currently attracts over $9 trillion in total allocations, including $4 trillion held by central banks. Bitcoin’s underperformance since early 2025 and its correlation with technology stocks have raised questions about its effectiveness as a safe haven asset. While cryptocurrency experts estimate Bitcoin’s production cost at around $62,000—potentially providing an empirical price floor—this support appears tenuous. Bitcoin ETFs have recorded significant outflows […]

Gold/Silver Ratio Briefly Reaches 100 to 1

Early Friday morning the gold to silver ratio hit 100 to 1. This ratio represents how many ounces of silver it takes to purchase one ounce of gold. A ratio of 100 means that gold is trading at 100 times the price of silver, which is historically high. The long-term average over the past century has typically ranged between 40 to 60, making the current level notable for investors. A high ratio often suggests that silver may be undervalued relative to gold, potentially signaling a buying opportunity for silver or indicating unusual market conditions in precious metals.

Gold Rush to America Ends as Trump Exempts Precious Metals from Tariffs

A massive arbitrage trade in precious metals that flooded the United States with over $80 billion worth of gold and silver has suddenly ended following Wednesday’s announcement that these metals would be exempt from Donald Trump’s new tariff policy. For several months, traders had been responding to unusual price premiums in New York compared to global benchmarks, as markets priced in the risk of potential tariffs on precious metals. The price differentials—known in the industry as the “exchange for physical” or EFP—collapsed dramatically on Thursday after the exemption announcement. Gold’s premium dropped from over $62 to just $21 an ounce, […]

Safe-Haven Gold Climbs as China Retaliates with 34% Tariffs on US Goods

Gold prices strengthened by 0.5% to $3,128.76 an ounce on Friday, continuing its upward momentum after hitting a record $3,167.57 earlier this week, as investors fled to safe-haven assets amid heightening global trade conflicts. China’s finance ministry announced retaliatory 34% tariffs on all US goods effective April 10, responding to President Trump’s announcement of a 10% baseline tariff on all US imports with higher duties for major trading partners. Despite some price volatility, analysts remain bullish, with City Index’s Matt Simpson suggesting strong support around $3,080 and Wisdom Tree’s Nitesh Shah projecting gold could approach $3,600 by early 2026. Physical […]