06/01/2025 Daily Reports
Record 2024 Performance:
Gold surged 27% in 2024, marking its biggest annual gain since 2010 and reaching nearly $2,800/oz.
Key Drivers of Growth:
Central Bank Purchases: Major acquisitions by banks in China and emerging markets.
Fed’s Rate Cuts: Lower rates made non-yielding gold more attractive.
Safe Haven Demand: Geopolitical tensions, including conflicts in Ukraine and the Middle East, boosted gold’s appeal.
Trump’s Second Term & Economic Fears:
New tariffs, trade tensions, and inflation risks drive gold’s allure as a wealth protector.
Bullish Predictions:
Wall Street heavyweights like Bank of America and JPMorgan forecast gold reaching $3,000 this year.
Hedge Against Market Risks:
Analysts anticipate trade wars and economic slowdowns may push investors toward gold.
Trump-era deficit spending and a $28 trillion US debt load increase concerns over Treasury investments, favoring gold.
Long-Term Safe Haven:
Despite temporary dips, experts like Darwei Kung and Aline Carnizelo see gold as a key hedge, with prices projected to trade above $2,800 this year.
What’a next?:
2024 marked a remarkable year for gold, driven by global uncertainties and significant central bank purchases. As 2025 begins, market dynamics, including
geopolitical tensions and fiscal policies, continue to position gold as a key safe-haven asset. Observing how these factors influence gold’s performance throughout
the year will be essential for investors seeking stability in volatile markets.
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Asian markets showed muted reactions to reports that Canadian Prime Minister Justin Trudeau could announce his resignation today, with USDCAD slipping 0.3% to 1.4404. Investors appear ready for the possibility of early elections to clarify Canada’s political landscape.
In the U.S., Treasury yields are nearing eight-month highs, with the 10-year yield at 4.641%. This has kept the dollar supported, even as it softened slightly against other major currencies. Rising yields challenge equity valuations, especially as last year’s S&P 500 rally relied heavily on just five stocks.
Japanese bond yields hit 12-year highs at 1.121%, reflecting expectations of a potential Bank of Japan rate hike. Meanwhile, Chinese yields are at record lows, and the yuan slid to a 16-month low at 7.3286 per dollar.
Attention now turns to Friday’s U.S. jobs report, with forecasts suggesting 150,000 new jobs and a 4.2% unemployment rate. Seasonal adjustments may influence the data, potentially distorting the outlook for the Federal Reserve’s next steps.
