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Daily Global Market Update – 28th March, 2025

Gold Hits Record High Amid Trade War Concerns Gold prices have surged to a record high, with spot gold reaching $3,086 per ounce. This increase is driven by escalating trade tensions following U.S. President Donald Trump’s announcement of a 25% tariff on auto imports, effective next week. Investors are flocking to safe-haven assets like gold to hedge against the uncertainties of a potential global trade war. Analysts suggest that the next target for gold could be $3,100 per ounce, as economic risks and geopolitical conflicts continue to support the bullish trend. NZD/USD Expected to Trade Within Range The New Zealand dollar (NZD) is anticipated to continue trading within a defined range against the U.S. dollar (USD). Market analysts project that the NZD/USD pair will remain range-bound, with no clear directional bias in the immediate term. Investors are advised to monitor economic indicators and central bank communications for potential catalysts that could influence the pair’s movement. AUD/USD Likely to Maintain Current Trading Range The Australian dollar (AUD) is expected to trade between 0.6275 and 0.6320 against the U.S. dollar (USD). Analysts suggest that the AUD/USD pair will likely remain within this range, reflecting a period of consolidation amid prevailing market conditions. Traders should keep an eye on developments in global trade policies and domestic economic data releases for insights into potential shifts in the pair’s trajectory. GBP/USD Reacts to Unexpectedly Strong UK Retail Sales The British pound (GBP) experienced a brief uptick following the release of February retail sales data, which showed an unexpected 1.0% increase from January, defying economists’ predictions of a 0.4% decline. This surprising retail performance offered some positive insight into consumer resilience. Following the data release, the pound reached a session high of $1.295, but later settled at $1.2944, showing little overall change. Concurrently, the euro was slightly down against the pound to 83.34. Additionally, the UK economy grew by 0.1% in the fourth quarter of 2024, in line with expectations, and saw a 1.5% annual growth, marginally surpassing the forecasted 1.4% increase. Broader Market Context Global markets are on edge as the implementation of new U.S. tariffs fuels fears of a deepening trade war. Asian stocks have experienced significant declines, with Japan’s Nikkei and South Korea’s benchmark index both dropping around 2%. European and U.S. stock futures also point downward, indicating widespread investor anxiety. The U.S. dollar remains steady ahead of an upcoming inflation report, while the yen has strengthened on expectations of potential rate hikes by the Bank of Japan. Oil prices have seen slight declines due to concerns over the impact of new tariffs on the global economy.

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Publication date:

2025-03-28 12:27:19 (GMT)

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