Money

Gold surges amid trade war fears and economic concerns

Gold rises above $2,900 as investors seek safety amid escalating US-Canada tariff tensions and recession fears.

Published

4 months ago

March 12, 2025

ticker NEWS

Gold rises above $2,900 as investors seek safety amid escalating US-Canada tariff tensions and recession fears.

In Short

Gold prices have surged above $2,900 an ounce due to concerns about a potential US recession and increased tariffs sparking trade tensions. Analysts expect further interest rate cuts, creating a favourable environment for gold investment amid market volatility.

Gold prices have climbed above $2,900 an ounce as investors turn to bullion for safety amid escalating trade tensions.

President Trump announced a 50% increase in tariffs on Canadian steel and aluminium in response to Ontario’s electricity levy. This decision heightened fears of a global trade war potentially pushing the US economy towards recession.

As a result, US equities fell, and the dollar weakened, which helped lift gold prices by as much as 1.2%. Recent tariff announcements have caused volatility in the stock market and increased investor unease.

Tepid economic reports from the US have raised concerns of stagflation, where inflation risks rise while economic growth declines. This has led traders to expect multiple interest rate cuts from the Federal Reserve this year.

Recession talk

Stephen Jury, a strategist at JPMorgan Private Bank, noted that growing recession talk is likely to lower rates and the dollar, creating a supportive environment for gold prices in the latter half of the year. He views any gold price dips as opportunities for investors to diversify beyond stocks and bonds.

Former Treasury Secretary Lawrence Summers highlighted a nearly 50% chance of a US recession this year, linked to current administration policies undermining confidence.

Gold has risen 11% this year, propelled by uncertainties from the Trump administration, central bank purchases, and anticipation of further interest rate cuts. Spot gold reached $2,916.17 an ounce, while silver, palladium, and platinum also made gains.

Money

Markets surge as Fed hints at July cut

Fed’s Waller hints at July rate cut, boosting investor sentiment; Trump imposes 50% tariff on Brazil, provoking minimal market response.

Published

2 days ago

July 11, 2025

ticker NEWS

Fed’s Waller hints at July rate cut, boosting investor sentiment; Trump imposes 50% tariff on Brazil, provoking minimal market response.

Fed Governor Christopher Waller, tipped as a possible next Chair, signalled a July rate cut is on the table, calling current policy “too tight.” That’s been enough to supercharge investor sentiment.

Meanwhile, Trump has slapped a surprise 50% tariff on Brazil, sparking political tension. Brazil’s President responded with tough talk on “sovereignty,” but markets barely blinked, the Brazilian real dropped just 1%.

#StockMarket #FederalReserve #Bitcoin #AUD #TrumpTariffs #TickerNews

Money

Trump’s copper tariff shakes global markets

Trump’s 50% copper import tariff aims to strengthen U.S. manufacturing, impacting global supply chains and Chile significantly.

Published

3 days ago

July 10, 2025

ticker NEWS

Trump’s 50% copper import tariff aims to strengthen U.S. manufacturing, impacting global supply chains and Chile significantly.

President Donald Trump has unveiled plans to impose a 50% tariff on copper imports, a move set to rattle global supply chains and redraw the industrial map.

The tariff will hit within weeks, with Chile, the world’s largest copper exporter, expected to bear the brunt.

While Australia’s direct copper trade with the US is limited, analysts say the real message is strategic: the US is reinforcing its domestic manufacturing power.

#CopperTariff #DonaldTrump #TradeWar #GlobalMarkets #TickerNews

Money

RBA unexpectedly keeps interest rates steady at 3.85%

RBA surprises with decision to maintain interest rates at 3.85%, impacting economic forecasts and housing market activity.

Published

5 days ago

July 8, 2025

Ahron Young

RBA surprises with decision to maintain interest rates at 3.85%, impacting economic forecasts and housing market activity.

In Short:
The Reserve Bank of Australia has kept its cash rate at 3.85% despite concerns from the Housing Industry Association about its impact on new home construction. Although inflation is within target and there’s some market confidence, households are under financial strain amidst economic uncertainties.

The Reserve Bank of Australia has decided to maintain the cash rate at 3.85% following a split vote of six to three. This unexpected decision comes as the Housing Industry Association warns that these rates remain restrictive, potentially hindering new home building.

Senior economist Tom Devitt stated that the rates will delay necessary building activity but noted improved market confidence following previous rate cuts.

Current inflation data shows the RBA’s preferred measure has been declining and remains within the target range. However, household spending is under strain, with Australia experiencing a per capita recession since mid-2022.

Labour costs

The RBA’s decision was influenced by concerns over productivity growth and high unit labour costs, affecting its inflation outlook. While some economists anticipated a rate cut, the RBA opted for caution due to economic uncertainties, both domestically and internationally.

The bank acknowledged gradual recovery in private demand and household incomes but highlighted ongoing challenges in passing cost increases to final prices.

Despite the hold on rates, price rises in essentials like petrol continue to impact Australian households. The RBA emphasized the need for ongoing assessment before making future rate changes, suggesting a careful approach in response to evolving economic conditions.