22/04/2025 Daily Reports
Markets Shift as Trump Tariffs, Fed Tensions Weaken Dollar and Increase Demand for Havens
- World markets remain in doubt as investors weigh rising trade tensions, Federal Reserve leadership rumors, and the increasing uncertainty of U.S. economic policy.
- After President Donald Trump escalated his trade war with new record tariffs and rejecting tariff exemptions,
- U.S. stock futures fluctuated while the dollar extended its loss to a 15-month low. Meanwhile, the yen and gold gained as investors sought shelter.
- Concern that Trump can sack Fed Chairman Jerome Powell for not cutting interest rates sufficiently strongly also contributed to market anxiety.
- Results from Tesla and Alphabet this week are being emphasized as the investors look for clues on how businesses are coping with the situation.
- Japan and China in Asia showed increasing defiance in the face of demands by the U.S. for concession on tariffs ahead of long negotiations.
- Amid these difficulties, investors are flocking to safe-haven assets, pushing gold to more than $3,444 an ounce and lifting the yen against all major peers.
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Gold Hits Record High: $3,500 an Ounce
- Gold briefly surged above $3,500, marking an all-time high, before easing slightly as traders locked in profits.
- The rally was triggered by fears that President Trump may fire Fed Chair Jerome Powell, challenging the Fed’s independence.
- Trump has been pressuring the Fed to cut interest rates immediately, calling Powell “Mr. Too Late.”
- Safe-haven assets like gold, yen, and Swiss franc are in high demand as confidence in the US dollar weakens.
- Gold is up 32% in 2025, outperforming most major asset classes.
- US Treasuries are no longer the go-to refuge due to fiscal concerns — analysts call gold “the only true safe haven left.”
- Central banks have been buying aggressively since early 2024 to reduce USD exposure and hedge geopolitical risks.
- Gold-backed ETFs and Chinese gold trading volumes are soaring.
- Goldman Sachs now sees $4,000 gold possible by mid-2026.
- Gold’s RSI above 78 suggests the metal may be short-term overbought, yet macro uncertainty supports medium-term strength.
What’s Next?
- This latest gold rally isn’t just a reaction to political tension — it’s a loud signal that markets are questioning the long-term credibility of US economic policy.
- When gold leads while bonds and the dollar lag, it’s not just risk aversion; it’s a shift in trust. Even if a short-term correction comes, the trend reflects deeper structural uncertainty.
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