Gold’s Rollercoaster Ride: Record Highs Take a Dip
Trump’s “Short‑Term Waiver” Gives Gold a Breath
President Donald Trump temporarily absolved US automakers from his hefty 25% tariffs on Canada and Mexico—just a one‑month stretch. That move gave the market some breathing room and made risk‑takers feel a bit more relaxed, so the usual safe‑haven crowd eased off their gold bows and the metal slipped a notch.
Will the Gold Rush Resume?
Things aren’t all bleak. If China, Mexico and Canada keep pushing back with tariffs, gold might reap the benefit, especially while concerns about global growth linger.
Tariffs: Growth’s Silent Menace
- Inflation Looks Set to Rise: With tariffs hammering economies, prices could climb, nudging central banks toward tighter policies.
- Gold Takes a Hit if Rates Tighten: Higher rates usually tip the scales against non‑yielding assets.
US Economic Signals: A Mixed Bag
- Positive: Services sector data are a bright spot.
- Warnings: Private‑sector job growth is slowing and jobless claims are climbing.
- Risk: All this could spell a slowdown.
Market Outlook: Fed Rate Cut in June?
Traders are waiting for the Fed’s June decision. A cut would typically buoy the dollar but could lift precious metals, given they don’t deliver interest.
Upcoming Focus: Nonfarm Payrolls (NFP)
This week’s NFP will be the key gauge for labor market health. Two possible scenarios:
- Robust numbers – Dollar gains: A strong NFP could pull the currency higher, sucking gold.
- Weaker numbers – Gold revives: If NFP disappoints, investors may swing back towards gold for safety.
Keep an eye on the market—gold tends to move faster than a squirrel on caffeine.
