Insightz

Former U.S. President Donald Trump has ignited global market turmoil with a bold new trade proposal, suggesting tariffs as high as 50% on European Union goods. He also threatened to impose additional taxes on Apple if the company doesn’t relocate its manufacturing operations back to the United States. The announcement triggered a sharp sell-off in both European stocks and U.S. stock futures, with Apple shares dropping nearly 4% in pre-market trading. Heightened investor anxiety is fueling a flight to safety, as economists warn that a renewed trade war could derail the fragile global economic recovery.

U.S. May PMI data came in unexpectedly strong, pushing the dollar and Treasury yields higher while sending gold prices tumbling below the $3,300 mark. Despite short-term pressure from technical factors and tighter liquidity, continued central bank buying and persistent geopolitical tensions continue to support the medium- to long-term outlook for gold. Investors should closely monitor key technical support levels and upcoming Federal Reserve policy decisions.

On May 22, 2025, gold prices pulled back to close at $3,297.33 per ounce, after briefly reaching a two-week high. The retreat came as the U.S. dollar strengthened, stock markets advanced, and investors shifted capital toward riskier assets, prompting profit-taking in gold. However, falling U.S. Treasury yields and concerns surrounding a proposed tax cut plan offered some support for bullion. Investors are now closely watching upcoming U.S. economic data for further direction. Experts recommend a cautious approach, highlighting the importance of monitoring key technical support and resistance levels to navigate ongoing volatility in the gold market effectively.

Recent comments by former U.S. President Donald Trump suggest that the Russia-Ukraine war could drag on, reigniting global concerns over geopolitical risk. This has triggered volatility in international oil and gold prices, while defense stocks have defied the broader market trend and moved higher. As energy security and military spending come back into focus, investors may want to reassess their portfolios with caution. Keeping a close eye on the upcoming NATO summit and shifts in global policy will be key to navigating the evolving financial landscape.

The British pound has climbed for four straight sessions against the US dollar, bolstered by stronger-than-expected UK inflation data and a shift in market expectations around monetary policy. Sterling briefly touched 1.3430, nearing the key psychological resistance level at 1.3450. As attention turns to upcoming PMI and retail sales figures, traders are closely watching the pound’s next move.

Gold prices surged this week, hitting a high of $3,350 per ounce, driven by both strong technical momentum and supportive fundamentals. With the U.S. dollar weakening, key PMI data on the horizon, and rising geopolitical tensions, the outlook for gold remains bullish. Investors should monitor critical support and breakout levels closely and stay agile in adjusting their strategies.