Recent data validating the strength of labor markets suggests that we might not see interest rate cuts in the first quarter. Meanwhile, precious metals maintain their war pricing stance amid escalating tensions. Geopolitical issues surrounding Venezuela and Iran indicate that further developments may occur. Although months remain until the U.S. mid-term elections, President Trump is focused on reviving the economy and boosting stock markets to create a positive image as the elections approach. How feasible is this endeavor?
Current Status of U.S. Markets
Today, a crucial decision from the Supreme Court is anticipated, and despite getting accustomed to cryptocurrency risk pricing, markets may move in unexpected directions. The U.S. futures market began experiencing its first series of losses this year before the opening. In contrast, assets like gold and silver are climbing to new heights.
Following President Trump’s threats of intervention, concerns have risen, leading to a fall in futures. Some sources report that troops are being withdrawn from a U.S. base in Qatar, and early in the day, the U.S. State Department recalled its citizens from Iran. Asian stocks are performing well, primarily due to expectations that upcoming Japanese elections will reinforce Prime Minister Takaichi’s pro-stimulus policy.
For the first time, silver surpassed $90, a rise that few anticipated. Even though the $60 level seemed like a peak, circumstances proved otherwise. Gold has reached new records, while tin and copper have also hit new heights. Unlike commodities like copper and tin, which rise with strong industrial demand expectations, gold and silver benefit from geopolitical risks and potential confrontations with the Federal Reserve.
What to Expect?
At 5:50 PM, Paulson from the Fed will speak about the economic outlook at the Greater Philadelphia Chamber of Commerce Kimmel Center for the Performing Arts. Miran from the Fed will address regulations, supply-side issues, and monetary policy at the Delphi Economic Forum at 6:00 PM. Meanwhile, a Supreme Court tariff decision is expected.
At 8:00 PM, Kashkari from the Fed will join a virtual meeting with the Wisconsin Bankers Association. Bostic from the Fed will participate in a moderated discussion with Atlanta Business Chronicle’s market president and publisher, David Rubinger.
Following these events, President Trump is scheduled to have a signing ceremony, and in the early hours, Williams from the NY Fed will deliver the opening remarks at the annual “An Economy That Works for All” event. The agenda is busy, and cryptocurrencies are experiencing significant activity.