Market Summary (May 7, 2025)
Macro markets remain cautiously bullish with a focus on US-China trade developments and geopolitical tensions. The USD is supported by reassurances that Federal Reserve Chair Powell won’t be ousted, keeping gold under pressure short-term despite a structurally bullish outlook driven by late-2024/early-2025 central bank gold demand. Recent inflation data shows Swiss inflation turning deflationary, suggesting potential rate cuts by SNB, which could weaken the CHF. Markets anticipate a potential reduction of US tariffs with incremental increases if negotiations stall, fostering a risk-on environment. Gold remains fundamentally bullish, with Goldman Sachs projecting $3,700 to $4,000 in the coming months, while the evolving US-China trade talks and geopolitical conflicts (India-Pakistan escalation) introduce volatility and opportunity. Meanwhile, market sentiment is increasingly influenced by geopolitical tensions and trade policy signals, reinforcing the importance of adaptive strategies.
