31/03/2025 Daily Reports
New Record High: Gold kicked off the week with a fresh all-time high, surpassing $3,110 per ounce amid growing demand for safe-haven assets.
Key Drivers:
- President Donald Trump’s new 25% tariff on auto imports
- Anticipation of “reciprocal tariffs” set to be announced on Wednesday
- Increasing geopolitical and macroeconomic uncertainties
Central Banks’ Role: Gold has surged 18% in 2025 so far, primarily driven by aggressive central bank purchases and heightened investor demand for safety.
FED and Interest Rates: Despite swaps traders reducing bets on Federal Reserve rate cuts, gold continues to rally. Lower interest rates typically support non-yielding bullion, but gold has remained strong even amid uncertainties around rate cuts.
Major Bank Forecasts:
- Goldman Sachs: Raised its gold price target to $3,300 by year-end
- Other Institutions: Many leading banks have revised their forecasts upward
Market Update:
- Spot Gold: $3,110.07/oz
- US Dollar Index: Down 0.2%
- Other Precious Metals: Silver, platinum, and palladium also gained
What’s Next?: This rally is a continuation of trends seen in 2023 and 2024, fueled by central bank accumulation, US-China tensions, and monetary policy uncertainty. If Trump’s tariffs escalate further and global risks persist, $3,300+ seems achievable.
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Gold Surpasses $3,100: Trade Wars and Global Uncertainty Fuel Rally
U.S. stock futures fell on Sunday as investors awaited further details on President Donald Trump’s tariff plans set to be announced this week. Trump has already confirmed new tariffs on countries that impose duties on U.S. products, starting Wednesday, along with 25% tariffs on foreign-made cars and auto parts from Thursday. Reports also suggest the administration may introduce a broader 20% tariff on all imports.
Dow futures dropped 250 points, or 0.6%, while S&P 500 and Nasdaq futures fell 0.7% and 0.8%, respectively. Trump signaled he was unconcerned about higher car prices, saying tariffs would encourage Americans to buy domestic vehicles.
Markets are also monitoring geopolitical risks after Trump threatened additional tariffs on countries purchasing Russian oil and issued warnings toward Iran. This week’s U.S. jobs report will be closely watched for signs of labor market shifts, particularly following recent federal job cuts, some of which remain under legal review.
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Global stock markets slumped on the final trading day of the quarter amid escalating concerns over US tariffs and economic fallout. S&P 500 futures dropped 1%, while Nasdaq 100 contracts fell 1.4%, led by declines in Tesla and Palantir.
- European and Asian markets also declined sharply, with Japan’s Nikkei 225 entering correction territory after a 4.1% drop.
- The S&P 500 is down 5.1% for the quarter — its worst since 2022 — as investors brace for President Trump’s April 2 reciprocal tariff rollout, which could cut US GDP by 4% and fuel inflation, according to Bloomberg Economics.
- Virgin Atlantic’s warning on weak US travel demand and Goldman Sachs lowering its S&P 500 year-end target added to the risk-off mood.
- Treasuries rallied, with 10-year yields dropping to around 4.19%, and gold surged past $3,100 an ounce, gaining over 18% year-to-date.
- Oil also edged higher on reports Trump may threaten Russian crude exports if no Ukraine ceasefire is reached.
- The shift toward safe havens highlights rising recession fears and investor unease heading into Q2.
