Gold Surges to Record High Near $3,275 Amid Tariff Uncertainty and Fed Policy Speculation

Gold Surges to Record High Near $3,275 Amid Tariff Uncertainty and Fed Policy Speculation

Gold prices have soared to an unprecedented level, reaching nearly $3,275 per troy ounce during the early Asian trading session on Wednesday. This surge is driven by escalating demand for safe-haven assets amid ongoing uncertainties surrounding U.S. President Donald Trump's tariff policies, a weakening U.S. dollar, and expectations of further easing by the Federal Reserve.​

The precious metal has been on a remarkable upward trajectory, with spot gold prices climbing over 6% this week alone. Investors are increasingly turning to gold as a hedge against inflation and economic instability, especially in light of recent market volatility and geopolitical tensions.

Analysts from Goldman Sachs have raised their year-end gold price forecast to $3,700 per ounce, citing stronger-than-anticipated central bank demand and rising recession concerns. Other major institutions, including UBS and Bank of America, have also increased their forecasts, reflecting a growing consensus on gold's bullish outlook. 

In Indonesia, the surge in gold prices has led to a significant increase in demand, with gold sales at local retailers tripling in recent days. This trend underscores the global appeal of gold as a reliable store of value during times of economic uncertainty.

​AUD/USD Holds Steady Below Two-Week High as Traders Await Chinese Data​

The Australian Dollar (AUD) is consolidating below its recent two-week high against the US Dollar (USD), with the pair trading near the mid-0.6300s on Wednesday. This pause in momentum comes as investors await upcoming Chinese macroeconomic data, which could provide fresh direction for the currency pair. ​

Market sentiment has been influenced by several factors, including the Reserve Bank of Australia's (RBA) cautious stance on further interest rate cuts, hopes for additional stimulus measures from China, and a temporary reprieve from US tariffs announced by President Trump. These elements have provided some support to the Aussie, although uncertainties remain.​

Technically, the AUD/USD pair faces resistance near the 0.6400 level, with key support levels at 0.6305 and 0.6261. Indicators such as the Relative Strength Index (RSI) and moving averages suggest a cautious outlook, with the potential for further consolidation or a breakout depending on upcoming economic data and global trade developments. ​

Investors will closely monitor the release of Chinese economic indicators, as Australia's economy is closely tied to China's performance. Any signs of economic strength or weakness in China could significantly impact the AUD/USD exchange rate in the near term.

Nvidia Faces $5.5 Billion Hit Amid New U.S. Export Restrictions on H20 AI Chips​

Nvidia has announced it will incur a substantial charge of up to $5.5 billion in its first-quarter financial results, attributing the loss to new U.S. export restrictions on its H20 AI chips. These chips, specifically designed for the Chinese market to comply with earlier export controls, now require an export license, a requirement that is expected to remain indefinitely 

The H20 chip was Nvidia's primary AI product permitted for export to China under previous regulations. However, the new restrictions have rendered existing inventory unsellable, leading to the significant financial charge. This development is anticipated to severely impact Nvidia's sales in China's AI market, which previously constituted a significant portion of its business .​

In response to the export restrictions, Nvidia has also unveiled plans to invest up to $500 billion in building AI supercomputers within the United States, partnering with Taiwanese contract manufacturers for this initiative . This move aligns with the U.S. government's push for domestic manufacturing and may serve as a strategic effort to mitigate the impact of the export controls.