Gold at new high and stocks rebound

Chris Beauchamp IG

Fresh record for Gold

First tariffs and now the Fed chairman. Trump continues to make investors fret about the outlook for the US and the global economy. Faced with this, the global investment community continues to pile into gold, which has made a fresh record today of $3500. Gold is an unlikely successor to 2024’s fever-driven Mag7 rally, but so long as investors spend their time worrying about the next crisis the metal should continue to gain.

Stocks claw back Monday’s losses

Looking at today’s rebound for equities, you might be forgiven for thinking that financial markets have forgotten all about Trump’s threats to fire Powell. Volatility on both up and down days is a given right now, but Tesla’s earnings tonight could well determine the near-term direction. In the short-term, the path of least resistance seems to point higher, especially since the real impact of tariffs is unlikely to show up in this quarter’s round of reports.

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Chris Beauchamp

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.