Tariff Relief Sparks a Bounce: Gold Rebounds After Brief Dip

Market Overview

Market sentiment improved after the White House announced tariff exemptions on select smartphones and computers. Spot gold initially dropped over 1%, briefly falling below the $3,200/oz mark, before paring losses to end the session down 0.85% at $3,210.38/oz. Spot silver remained volatile around the $32 level, ultimately gaining 0.17% to settle at $32.32/oz. WTI crude briefly surged above $62/barrel intraday but gave back most of its gains, closing 0.32% higher at $61.13/barrel. Brent crude edged up 0.43% to finish at $64.51/barrel.

Market Watch: Key Themes to Monitor

● Consumer Confidence Wanes Amid Volatility

Recent market swings reflect growing investor concern over slowing economic growth. However, in the broader context, long-term fundamentals and corporate performance remain the key focus. While consumer confidence has declined slightly, it continues to hold within a stable post-pandemic range. Fed Chair Jerome Powell reiterated on March 7 that the U.S. economy remains fundamentally sound, with no urgency to cut rates — a stance that may help stabilize market sentiment.

● Short-Term Inflation Expectations Hit 18-Month High

U.S. one-year inflation expectations rose to 3.58% in March, marking the highest level since September 2023, up from 3.13% previously. Three-year expectations held steady at 3.0%, while five-year expectations dipped slightly from 3.0% to 2.9%. Meanwhile, unemployment-related anxiety reached its highest level since the onset of the COVID-19 pandemic.

Key Economic Events to Watch

20:30 GMT+8

– Canada March CPI (MoM)

– U.S. April NY Empire State Manufacturing Index

– U.S. March Import Price Index (MoM)