A correction that began last week in the US stock market sharply accelerated yesterday, with investors shying away from virtually all risk and economic fear reigning on Wall Street.
Tech stocks fell the most since 2022, sending the Nasdaq 100 Index down nearly 4%. Cryptocurrency prices plummeted. Corporate bond sales were canceled. Wall Street's “fear gauge” and a key measure of credit risk rose sharply. And Treasury bonds rose, sharply lowering yields as they took on the role of a major safe haven.
Concerns intensified after Trump and his confidants began warning that there could be some challenges in the near future in rebalancing global trade. A chaotic deployment of new tariff policies and a desire to cut federal spending create severe uncertainty and cloud the prospects for economic growth.
“It took a few weeks for Trump to break the international economic regime, presumably with a plan to fix it and replace it with something ‘better,’ said Michael Rosen, chief investment officer of Angeles Investment Advisors.” — “Without a clear idea of what ‘better’ is, investors are left with only the detritus of a broken global economic structure.” Until we see what replaces it, investors will be cautious at best.”
Today, Trump plans to meet with top CEOs of leading companies. As a result of this meeting, there may be more understanding of the new administration's constructive measures. If this does not happen by the end of the week, the capital flow into safe havens, including gold, will only intensify.
The overall recommendation is to buy gold if the current uncertainty of the new tariff policy persists.
Profits should be taken at the level of 2970.0. A Stop loss could be set at the level of 2800.0.
The volume of the opened position should be set in such a way that the value of a possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.
This content is for informational purposes only and is not intended to be investing advice.
