Trump goes cold and markets do not like it- Gold extends record gains

Step back a little and absorb all that has changed in recent days. Trump has seemingly changed his tune on Putin and Zelensky and now he is issuing threats to Iran. This deterioration in the geopolitical risk backdrop has come on top of the so called ‘Liberation Day' labelled by Trump, when his trade tariffs will kick in on April 2. It also comes as the month and quarter-end fall due by the close tonight. The stock markets are reeling anyway and this added geopolitical tension has not helped. Further calls for the risk of the US entering a recession this year have increased. Goldman Sachs have now lifted that to a 35% chance from a prior risk at 20%, but I have seen calls of 40% and more. That is not good news for the US stock markets and hence this compendium of drivers is forcing more to exit ahead of the month-end. What this has done it so further underpin Gold and the metal has advanced further since the earlier update this morning. Gold has now hit a new record, at $3,127.92, but it has backed away from that new record just now, but probably only due to someone taking some money off the table. Gold is currently trading at $3,122.10