Market Panic Fuels New Gold Highs

Market Overview

Spot gold surged to a new all-time high above $3,340 per ounce, extending its record-breaking rally as traders eyed the Trump administrations next moves on trade negotiations. A weaker U.S. dollar and escalating global trade tensions further boosted demand for safe-haven assets. Gold soared more than $100 intraday and ultimately closed up 3.49% at $3,342.19. Spot silver also advanced 1.41% to $32.74 per ounce. Crude oil rebounded amid fresh U.S. sanctions on Iranian oil exports. WTI crude erased early losses during European trading hours and climbed 1.78% to settle at $61.93 per barrel. Brent crude followed suit, rising 1.48% to $65.31.

Hot Topics to Watch

● Powell Reiterates Cautious Fed Stance Amid Inflation-Employment Dilemma

Fed Chair Jerome Powell reiterated that the central bank will remain on hold until more clarity emerges. He warned that tariffs could have a more persistent inflationary impact, emphasizing the importance of avoiding sustained inflation from one-time price shocks. Powell noted current tariff levels are exceeding the Feds upper-end expectations. Without price stability, a strong labor market cannot be sustained. He stated that the economy is “likely” to diverge from both inflation and employment targets this year. Denying the existence of a "Fed Put," Powell emphasized orderly market functioning and reaffirmed the Fed's independence from political pressure.

● Tariff Fears Fuel Consumer Spending—March Retail Sales Surge 1.4% MoM

U.S. retail sales rose sharply by 1.4% in March, the biggest month-over-month increase since January 2023. Year-over-year, sales grew 4.6%, the highest pace since December 2023. Auto sales saw their largest jump in two years, with 11 of the 13 tracked categories posting gains.

Key Data to Watch (GMT+8)

• 20:30 – U.S. Initial Jobless Claims for Week Ending April 12 (in 10,000s)

• 20:30 – U.S. March Housing Starts (annualized, in 10,000s)

• 20:30 – U.S. March Building Permits (in 10,000s)