Gold Hits Record High as Markets Await Powell's Remarks

Market Overview

U.S. equities retreated as tariff tensions persist, halting a two-day winning streak across major indexes. Trade negotiations between the U.S. and Europe have stalled, prompting U.S. Treasury yields to hit new daily lows while bond prices extended their rally. The U.S. Dollar Index rebounded sharply, ending a five-day losing streak. Crude oil pulled back from two days of gains, sliding as much as 1%. Meanwhile, gold surged past its all-time high, consolidating near $3,270 per ounce.

Hot Topics to Watch

● New York Manufacturing Contracts for Second Consecutive Month

The New York Feds general business conditions index rose by 11.9 points to -8.1 in April, beating expectations of -13.5. Despite the improvement, the reading still signals a second straight month of contraction in manufacturing activity. More concerningly, forward-looking expectations plunged, with business confidence falling to its lowest level since the aftermath of the 9/11 attacks.

● Japan Takes a Hardline Ahead of U.S. Tariff Talks

Japanese Prime Minister Shigeru Ishiba stated on Monday that Japan "has no intention of making major concessions or rushing into a deal" in its upcoming tariff negotiations with the United States. This firm stance directly contradicts former President Trump's assertion that countries are “eager to strike deals.” However, Japans economy faces mounting headwinds under U.S. tariff threats, especially with automobile exports under pressure. The yen has also strengthened, prompting speculation that the Bank of Japan may consider pausing rate hikes. U.S.-Japan trade talks are scheduled to begin this Thursday in Washington.

Key Data to Watch (GMT+2)

• 22:30 US April NAHB Housing Market Index
• 22:30 US February Business Inventories MoM
• 22:30 US Weekly EIA Crude Oil Inventory Report (ending April 11)

Overnight

• 01:30 US Fed Chair Powell speaks at the Economic Club of Chicago