100 Days In: Trump’s ‘Strategic Uncertainty’ on Tariffs Leaves Markets Guessing

Gold’s impressive performance continues with a 12% gain year-to-date, pushing prices near $3,000 per troy ounce following last year’s 25.3% surge that edged past the S&P 500’s total return. According to JP Morgan, central banks have emerged as the key players in the gold market, increasing their purchases by 11.5% each year since 2019 and now making up nearly a quarter of total demand. The report explains that central banks keep buying gold regardless of high prices because they’re focused on protecting against geopolitical risks and diversifying their reserves, especially after Russia’s assets were frozen in 2022. This behavior differs

Gold eased slightly from Monday’s all-time high of $2,956.19 as investors took profits, though prices remain supported by changing Federal Reserve rate cut expectations and rising haven demand. Increasing concerns about the US economy have dramatically shifted rate cut expectations, with markets now pricing in a quarter-point Fed cut in July—two months earlier than anticipated just last week. This monetary policy outlook benefits non-yielding assets like gold. Geopolitical tensions are adding significant support, as President Trump has implemented a series of measures targeting China that could deteriorate relations between the world’s two largest economies, while also increasing pressure on Iran.