Market Dose: What you should catch on.
Here is what you should catch on:
Vietnam and US trade news:
Despite recent positive developments in US-Vietnam trade relations, gold prices continue to climb, currently reaching $3,366 per ounce. This rise occurs even as a new trade deal is set to de-escalate market tensions, granting duty-free access for American products while reducing tariffs on Vietnamese goods from 46% to 20% (a rate that was in place before a 90-day pause).
This unexpected increase in gold prices could stem from a misconception among some investors that the tariff rate on Vietnamese goods has actually increased from the standard 10% universal tariff (which is set to expire next week) to 20%. Additionally, technical factors in the gold market may also be at play.
US Labor Data
And this upward gold price might also be factored in by an anticipation of the nonfarm payrolls data tonight, given how the ADP nonfarm employment changes declined to 33K last night. The NFP projection stands on the lower side compared to the prior figure, which also gives some room for the gold price to go upward.
India and US trade news:
Also note that, according to the Fox Business Correspondent, “we could get an announcement of a tariff deal with India as early as tomorrow,” hinting at the probability of having more agreement coming up before the deadline approaches.
The Federal Reserve
Trump continues to pressure Federal Reserve Chair Powell on lowering the interest rate while forcing him to resign from his position that is set to expire in May 2026. The CME Fedwatch Tool has priced in 3 rate cuts this year.
