Trump rates Rates Spark Policy Problems, Til Gold
The markets remain sharp after comments from former President Trump, who indicated that car rates are imminent and that not all trade measures will be enforced immediately.
Although details remain unclear, the unpredictability of trade policy has already filled in business trust. According to CNBC CFO Council survey, 60% of companies of companies expect an American recession towards the end of the year, a sharp increase compared to only 7% last quarter. Trade tensions are at the top of the list of external risks, closely followed by inflation and the weakening demand.
This policy instability has caused a pullback in Equity, with 90% of the CFOs that the Dow predicts will re -test the level of 40,000. Capital expenses are also limited, so that the appeal of gold is further supported as defensively active.
Fed Outlook supports precious metal in the midst of inflation problems
Gold has won up to 15% more than 15% years and recently reached a record high of $ 3,057.21 per ounce on March 20. Although the Federal Reserve did not leave the interest rates close last week, the Dovish guidelines on possible cuts later this year. FED -Governor Adriana Kugler noted that the progress of inflation has been stuck, which reinforces the expectations for long -term tariff accommodation.
Markets are now waiting for the data of the American personal consumption expenditure (PCE) on Friday. A soft reading can speed up the speed in betting, which may extend the Gold rally. With the flowering of precious metal in low-rate environments, any serious surprise in the data will probably continue to buy.