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

Gold prices are climbing as markets respond to Trump’s tariffs and expected future announcements. After a brief dip, gold has bounced back above $2,900, with traders setting their sights on the key $3,000 mark. The rally reflects a major shift in markets: the US dollar is falling instead of rising, and US stocks are dropping. This suggests investors may be losing faith in US market dominance and moving money to other regions, especially Europe, which plans to increase government spending. At the same time, recent US economic reports show worrying signs of decline, raising fears of stagflation—when growth slows but

Gold prices edged slightly higher on Wednesday, rising 0.1% to $2,918.83 an ounce, bolstered by a U.S. dollar that hit three-month lows and growing political uncertainty after President Trump announced new tariff measures. The precious metal has climbed 11% this year and reached a record $2,956.15 on February 24, with analysts maintaining a bullish outlook. Trump’s address to Congress revealed plans for “reciprocal tariffs” starting April 2, following his implementation of 25% tariffs on Mexican and Canadian imports and doubling duties on Chinese goods to 20%. Meanwhile, China has unveiled additional fiscal stimulus to counter the escalating trade war impacts.

The Federal Reserve has seven remaining meetings in 2025, with markets anticipating two to three interest rate cuts likely weighted toward the second half of the year. While March and May meetings are expected to maintain current rates (4.25-4.5%), cuts become increasingly probable starting with the June 18 or July 30 meetings. The Fed’s decision-making will balance inflation’s progress toward the 2% target against potential economic slowdown concerns, with Jerome Powell emphasizing they “don’t need to be in a hurry” to reduce rates.