Markets remained steady at the start of the week, with the Federal Reserve signalling no imminent rate cuts, OPEC+ maintaining its output plans, and gold prices climbing on safe-haven demand. Goldman Sachs raised its 2025 gold forecast, citing global economic concerns.
Federal Reserve Holds Policy Course Amid Trade Tensions
Federal Reserve Governor Christopher Waller reiterated the central bank’s data-driven approach, dismissing speculation from recent U.S. tariff announcements. Philadelphia Fed President Patrick Harker echoed this, maintaining that current interest rates are suitable and predicting easing inflation. Their unified messaging tempered rate-cut expectations, stabilizing Treasury yields and maintaining low volatility. The Fed’s stance underscores its commitment to the 2% inflation target, placing data over trade disruption concerns. (Source: Federal Reserve, Reuters)
The unified messaging from both officials highlights the Federal Reserve’s cautious stance, dampening market expectations for an imminent rate cut. Futures markets responded with stable Treasury yields and limited volatility. This alignment among key policymakers underscores the Fed’s commitment to its 2% inflation target, prioritising economic data over trade uncertainties.
Gold Gains as Safe-Haven Asset, Goldman Sachs Raises Forecast
Gold prices climbed as investors sought shelter from tariff-related uncertainties and geopolitical risks. Reuters reports that Goldman Sachs raised its 2025 gold forecast to $3,100 per ounce, up from $2,890, attributing the increase to higher central bank reserves and global economic fragility. (Source: Reuters)
Oil Prices Steady as OPEC+ Maintains Output Amid Geopolitical Tensions
Oil prices have stabilised following recent geopolitical tensions. Reports indicate that OPEC+ is not considering delaying the planned oil supply increase set for April, as stated by Russian Deputy Prime Minister Alexander Novak. This decision comes amidst Ukrainian drone strikes on Russian oil facilities, which have disrupted operations. West Texas Intermediate (WTI) crude is trading near $71 per barrel, while Brent crude is above $75 per barrel. These developments suggest that, despite regional disruptions, OPEC+ maintains confidence in the market’s ability to absorb the upcoming supply increase. (Source: Yahoo Finance)
Markets Round-Up: Early Week Highlights
This update covers the major market drivers at the start of the week: the Federal Reserve’s steady policy stance, Goldman Sachs’ revised gold forecast, and OPEC+’s decision to hold output steady despite geopolitical tensions. A clear snapshot of the events shaping market sentiment.
