Precious metals news

Gold prices remained relatively stable at $2,758.49 per ounce as markets await the Federal Reserve's policy decision and commentary on potential March rate cuts. The precious metal's recent approach to all-time highs, driven by Trump's calls for lower rates, was tempered by a tech sector sell-off triggered by Chinese AI developments. Investors are particularly focused on Fed Chair Powell's upcoming press conference and Trump's proposed trade policies, which could impact gold's safe-haven appeal.

Markets showed caution as investors faced a crucial combination of the Federal Reserve's rate decision and major tech earnings reports. The S&P 500 dipped 0.2% while the Magnificent Seven tech stocks fell 1.1%, with additional pressure from concerns about AI investments and competition from Chinese rival DeepSeek. Investors remain particularly focused on potential signals about inflation from Fed Chair Powell, while tech giants face scrutiny over their AI spending returns amid slower growth projections.

The Federal Reserve is expected to maintain its current interest rate position at 4.25-4.5% during Wednesday's meeting, despite pressure from President Trump for immediate rate cuts. Fed Chairman Powell is deliberately taking a low-profile approach to avoid conflict with the administration while preserving the central bank's independence. This stance comes amid Trump's recent demands for lower rates and his suggestion that falling oil prices will create room for monetary easing.

The Federal Reserve is expected to maintain current interest rates between 4.25% and 4.50% this week, following three consecutive rate cuts since September. While economic data shows surprising strength and sticky inflation, the Fed is taking a cautious approach as it evaluates the potential impact of President Trump's proposed policies on trade, taxation, and regulation. Officials are maintaining flexibility in their strategy, waiting for more clarity on both inflation trends and the new administration's economic initiatives before committing to future rate adjustments.

Alan Hibbard dives into top banks’ new predictions for gold in 2025-ranging from $2,900 to $3,000-and examine how they fared with earlier forecasts.

After an exceptional two-year bull run reminiscent of the late 1990s, the market narrative has evolved significantly. The Federal Reserve's recent rate cuts, totaling one percentage point over four months, have become secondary to the broader implications of Donald Trump's presidency and potential policy changes. The market environment shows several key shifts: corporate confidence has become consensus rather than surprising, investors are adapting to sustainably higher interest rates, and the 10-year Treasury yield is testing multi-decade highs. Most notably, Trump has replaced Fed Chair Jay Powell as the primary source of market uncertainty, with investors increasingly focused on how his policies might reshape the Fed's role, market dynamics, and the broader U.S. economy.

Gold's current price action presents a familiar pattern that typically emerges during major market repricing events, but with a unique geopolitical twist. The chart suggests that gold's upward trajectory is primarily driven by US-China relations, making it more than just another market trend. Unlike normal market movements that tend to equilibrate around risk-free rates, this pattern indicates deeper structural changes in the global economic landscape. As tensions between major powers persist, gold's rise could accelerate as global speculators join the trend. However, the metal's role has evolved beyond being just an investment vehicle - it's becoming a crucial leading indicator for global stability and economic health. For investors, understanding this dual nature of gold as both a trade and a geopolitical barometer is essential for making informed decisions across their entire portfolio, as escalating global tensions could significantly impact various sectors and businesses differently.

Oil markets are experiencing significant volatility as multiple geopolitical factors come into play. Brent crude approached $78 per barrel, recovering from its steepest drop since November, as protesters threatened to halt operations at Libya's crucial Ras Lanuf and Es Sider export terminals. This potential disruption to Libya's oil exports coincides with President Trump's aggressive trade stance, including plans for universal tariffs "much bigger" than 2.5% and specific threats targeting Canadian oil imports, which comprise over half of U.S. crude imports. The situation is further complicated by existing pressures from U.S. sanctions on Russian oil and weather-related demand spikes. Despite Trump's calls for increased production to lower prices, OPEC and its allies are expected to maintain their current supply policy at next week's review meeting, with planned output increases not starting until April. These factors collectively create a complex landscape for oil markets, which have already seen signific...

The market fallout from DeepSeek's disruptive AI announcement is raising concerns among top Wall Street strategists about potential broader economic impacts. Citi's analysis team, led by Adam Pickett, points to increasingly "frothy" U.S. equity markets and warns that the current tech selloff could significantly impact consumer wealth, noting that a record 58% of American households now hold stocks. The connection between market performance and consumer spending is particularly concerning, with their research showing that a 1% S&P 500 movement correlates to a 0.3% change in household financial assets. This situation is further complicated by Bridgewater founder Ray Dalio's observation that AI excitement has created bubble-like conditions similar to the late 1990s, with high valuations coinciding with interest rate risks. Adding to the market uncertainty, President Trump's aggressive tariff rhetoric is strengthening the dollar, potentially creating additional headwinds for the economy.

The U.S. dollar strengthened against major currencies on Tuesday as markets grappled with Trump's expanded tariff threats and the aftermath of DeepSeek's AI breakthrough. The dollar index recovered to 108 as traders reversed Monday's risk-off moves, while the euro fell 0.7% to $1.04155. As the Federal Reserve begins its two-day meeting, market expectations have shifted, with rate cuts now anticipated around June, though Fed officials have already acknowledged potential impacts from Trump's policies on their inflation outlook. The European Central Bank's expected rate cut this week adds another layer of complexity to the currency landscape.

Gold's trajectory for 2025 looks exceptionally strong, building on its impressive 27% gain in 2024 - its best performance since 2010. A recent poll of 36 market experts projects gold reaching $2,756 per ounce in 2025, reflecting growing confidence in the metal's safe-haven appeal during Trump's second term. While gold briefly retreated following the U.S. election and the Fed's December meeting, which indicated fewer rate cuts for 2025, the metal has found renewed support from Trump's tariff threats and potential trade conflicts. However, analysts note a market divergence: while high prices might dampen jewelry demand in price-sensitive Asian markets, central bank purchases and speculative interest are expected to remain robust, particularly as geopolitical tensions and inflationary pressures persist.

The U.S. dollar saw significant gains on Tuesday following President Trump's statements aboard Air Force One regarding his plans for universal tariffs. While Treasury Secretary Scott Bessent had proposed a gradual approach starting at 2.5% with incremental increases, Trump suggested he had a "much higher" rate in mind. Though declining to specify the exact figure, Trump emphasized the tariffs would be sufficient to "protect our country." This policy divergence triggered immediate market response, with the dollar index climbing more than half a point to 107.86, showing uniform strength against both the euro and Japanese yen. The market movement suggests investors are pricing in the potential impact of more aggressive trade policies than initially anticipated under the Bessent plan.

The Perrodo family, with an $8 billion fortune built on their oil company Perenco, is dramatically diversifying their investments through their London-based family office BNF Capital and private equity firm Perwyn Advisors. Their recent ventures span luxury real estate, high-end diamonds, fashion brands, and specialty food products, marking a significant shift from their traditional oil and gas focus while maintaining their core energy business.

A significant breakthrough appears possible in the ongoing dispute between Barrick Gold Corporation and Mali's government as both parties return to the negotiating table, facilitated by the National Workers Union of Mali. The conflict over revenue distribution from the Loulo-Gounkoto mine, one of the world's largest gold operations, has resulted in severe consequences including the seizure of gold stockpiles by Mali's government and an arrest warrant issued for Barrick's CEO Mark Bristow. While Mali's military junta hasn't explicitly stated their demands, Barrick has put forward a substantial $370 million settlement offer to resolve the standoff. This development marks a potential turning point in a dispute that has significantly impacted operations at a crucial mining facility and strained relations between the world's second-largest gold producer and the West African nation.

Gold markets found their footing on Tuesday after experiencing their steepest drop since December 18, when investors liquidated positions to cover losses in technology stocks. The selloff was precipitated by DeepSeek's announcement of a low-cost AI model, which challenged the dominance of established AI companies. Despite this turbulence, gold has maintained its position above $2,742 per ounce, supported by stable European equities and broader market recovery. Analysts remain bullish on gold's prospects for 2025, citing multiple supporting factors including potential Fed rate cuts, Trump's inflationary policies, and ongoing market uncertainty. Meanwhile, as the Federal Reserve begins its first meeting of the year, attention turns to monetary policy decisions, though Trump's recent comments about wanting lower borrowing costs have raised questions about the Fed's independence. While gold and silver maintain strong positions, analysts have reduced their forecasts for platinum and palladium due to persistent...

With Trump calling for the U.S. to be the Crypto Capital of the world and Senate Lummis promoting a Bitcoin Strategy Reserve, could China's DeepSeek put a real KIBOSH in the plans...

U.S. Treasury yields fell sharply on Monday, with the 10-year note dropping 12 basis points to 4.50% as investors sought safety amid a tech sector selloff triggered by Chinese AI firm DeepSeek's breakthrough. The flight to safety also boosted traditional haven currencies like the yen and Swiss franc, while traders increased bets on Federal Reserve rate cuts. The market reaction echoes concerns about U.S. tech valuations and technological dominance.

Oil prices are fluctuating near $78 per barrel as markets react to President Trump's rapid succession of trade policy moves, particularly the threatened and subsequently paused tariffs against Colombia. Despite the uncertainty, crude prices remain elevated from the start of the year, supported by cold weather, Russian sanctions, and strong Asian demand. Supply disruptions in Iraq's Rumaila field and record production in Kazakhstan are adding to market volatility.

Deutsche Bank's George Saravelos warns that DeepSeek's AI breakthrough could trigger a market correction reminiscent of the dot-com bust. While the innovation may boost long-term productivity and growth, the near-term impact could include a tech sector selloff, mild recession, and eventual dollar weakness. While Saravelos acknowledges the long-term benefits of lower-cost productivity gains and reduced inflation, he emphasizes that near-term market adjustments could be significant, particularly when combined with potential Trump administration fiscal measures and trade policies with China.

Pimco's Marc Seidner is taking a contrarian position on Federal Reserve policy, predicting two rate cuts in the second half of 2025 with potential for more, despite market expectations of fewer reductions. The veteran investment officer, whose Dynamic Bond Fund has outperformed 91% of peers, believes markets are overestimating the inflationary impact of Trump's policies and favors shorter-term Treasuries to capitalize on expected rate moves.