My thoughts on financial markets as of 31 May 2025, Saturday:
President Trump's appeal is pending in US Supreme Court to go back full swing in his Liberation day Traffics. He may be required to adjust the terms of the traffic's for individual countries. Question is that he may be required to slow down in implementations. Once the lower trade court blockage was known other countries some like India had started demanding zero terrific. China complained in a different way to mean the same thing. Chinese US trade deal done two weekends ago is questionable, as both sides are complaining on different issues, the US Treasury Secretary saying the problem needs resolution at both presidents level. Will China give in to Trump? Yet to be seen. US inflation last data is close to Federal Reserve target 2 percent. If next Friday US non farm payroll data is in favour, federal reserve may be forced cut interest rate at least 50 bps in their June 2025 meeting some time third week, June 2025. Federal Reserve Chair Powell had told President Trump during last week white house meeting, that interest rate decisions will be non- political. How true will be that stand going forward?. US Dollar eventually is expected to depreciate 15 to 20 percent in medium term through market forces, if US Treasury does not do it officially. Metals like copper, silver and gold to some extend are bottoming out and expected to move up. Silver at 40 and gold at 4000 levels in near future. Florida and some other US state governments had made gold and silver as a the legal tender. Gold and silver bar physical deliveries at Comex contract settling time is increasing, creating an artificial shortage of physical gold and silver bars. Many wealth people are moving their physical gold holdings to Singapore lockers, after seeing the physical metals movements in London metal exchange and Comex warehouses. One word of caution as shared by a good friend is that " beaten up leaders will sometimes turn very violent going forward to achieve their targets."
Good luck in your next week trading.
C N Nachiappan,
Singapore,
31 May 2025.