U.S. oil broke the $70/barrel mark, tariff concerns supported gold prices to stay above 3,000, concerns about tightening supply intensified

Basic news

On Thursday (March 27, Beijing time), spot gold trading was around 3020.14, and gold prices fell on Wednesday as US dollar and US bond yields rose, but concerns about the Trump administration's new tariffs kept the gold price above $3,000 per ounce; US crude oil trading was around $69.66 per barrel, and US oil once stood above the $70/barrel mark during the trading session on Wednesday, the highest since March 3, after government data showed that US crude oil and fuel inventories fell last week, and the United States threatened to impose tariffs on countries that purchased Venezuelan crude oil, and the market's concerns about tightening global supply increased.

The S&P 500 closed down 1.12% on Wednesday at 5712.20 points. The Nasdaq closed down 2.04% at 17,899.02 points, while the Dow Jones Industrial Average closed down 0.31% at 42,454.79 points.

Stock Market

U.S. stock market closed sharply on Wednesday, dragged down by the decline of Nvidia and Tesla, and investors were waiting for information on U.S. auto tariffs. U.S. President Trump will announce plans to impose tariffs on the auto industry at a press conference on Wednesday, which will further expand the global trade war front that he triggered this year. Automotive industry experts expect the move to drive up prices and hinder production. For weeks, Trump has been pledging to announce a series of reciprocal tariffs on April 2.

Tesla fell 5.6%, while General Motors fell 3.1%, investors' retaliation against tariffs, trading partners and possible global economy and businessesThe chain effect is uncertain. Jamie Cox, managing partner at Harris Financial Group, said, "The market hates the uncertainty of tariffs, especially when it aihuaforex.comes to the automotive sector. The automotive industry is the hardest hit by the negative economic impact of tariffs."

Nvidia, a heavyweight chip aihuaforex.company, fell nearly 6%, while Broadcom fell nearly 5%, pushing the PHLX chip stock index back 3.3%. Six of the 11 sectors of the S&P 500 fell, with the information technology sector falling the most, down 2.46%, followed by the aihuaforex.communications services sector falling 2.04%. A survey showed that optimism among U.S. corporate chief financial officers (CFOs) fell in the first quarter.

aihuaforex.companies worried that tariffs will lead to higher prices have increased their inventory. Data shows that U.S. durable wealth orders increased unexpectedly in February.

Barclays lowered the S&P 500 index's 2025 target level from 6,600 points to 5,900 points. So far in 2025, the S&P 500 has fallen 3%, while the Nasdaq has fallen more than 7%.

The main focus of this week will be the Personal Consumer Expenditure (PCE) price index released on Friday, the Fed's most favored inflation indicator.

Minneapolis Federal Reserve Bank Chairman Neel Kashkari said Wednesday that he was uncertain about the impact of Trump's tariffs on the U.S. economy, which could push up prices, providing justification for a rate hike, which could also lead to a slowdown in economic growth, in turn providing a reason for a rate cut.

Gold market

Gold prices fell on Wednesday as dollar and U.S. Treasury yields climbed, but concerns about new Trump administration tariffs kept gold above $3,000 per ounce.

Spot gold was $3,016.71 per ounce, down 0.1%. US gold futures closed down 0.1% at $3,022.50. The U.S. dollar index rose 0.4%, while the index's 10-year U.S. Treasury yield rose.

Investors worried that Trump's tariffs will stimulate inflation and hinder economic growth are seeking as safe-haven assets such as gold are still supported by risk aversion, with new all-time highs that will help achieve my next upside target of $3,150."

Investors worried that Trump's tariffs will stimulate inflation and hinder economic growth are seeking asylum on safe-haven assets such as gold. Gold, traditionally seen as uncertainty and inflation hedges, has risen more than 15% this year and hit a historical peak of $3,057.21 on March 20.

Party participants are now looking forward to the U.S. personal consumption spending data to be released on Friday, which could provide more information on the U.S. rate cut path.

Other aspects, spot silver fell 0.3% to $33.63 per ounce; platinum fell 0.1% to 975.17Dollar. Palladium rose 1% to $965.98. Oil markets

oil pricesaihuaforex.com rose Wednesday after government data showed a decline in U.S. crude and fuel inventories last week, coupled with the U.S. threat of tariffs on countries that buy Venezuelan crude, market concerns about tighter global supply.

Brent crude oil futures closed up 1.05% at $73.79 a barrel. U.S. crude oil futures closed up 0.94% to $69.65 a barrel. At intraday highs, both indicator contracts rose by more than $1 per barrel.

The U.S. crude oil inventories fell last week as refineries continued to increase production, while gasoline and distillate inventories also fell, the U.S. Energy Information Administration (EIA) said.

EIA said crude oil inventories fell by 3.3 million barrels to 433.6 million barrels in the week ended March 21, a drop of greater than the 956,000 barrels expected by analysts in a Reuters survey.

Trade for exporting oil to its biggest buyer, China, fell to a standstill on Tuesday after U.S. President Trump threatened to impose tariffs on countries that bought oil from Venezuela. "The market is worried about touching this oil, so we may lose these supplies," said John Kilduff, partner at AgainCapital LLC. "

The United States reached an agreement with Ukraine and Russia to suspend maritime attacks and attacks on energy targets, and Washington agreed to push for lifting some sanctions on Moscow, which limited oil prices. AgainCapital's Kilduff said that offset some support for oil prices from the situation in Venezuela, adding that he expects more Russian supplies to appear in the market.

Foreign market

The dollar hit a three-week high against the euro on Wednesday and also rose against the yen, and traders are waiting for news about U.S. President Trump's announcement of auto tariffs.

Traders are worried that trade tariffs will affect U.S. economic growth and may rekindle inflation, but are also considering whether tariffs will be lighter than they are worried. A press conference on car tariffs is expected to be held Wednesday at 4 p.m. ET. "Everyone is trying to figure out what measures will be taken on the tariff issue," said Steve Englander, head of global G10 foreign exchange research and North America macro strategy at Standard Chartered Bank. They hope to avoid market pressure before the announcement is released. However, I think there are some risks, that is, at the critical moment, the announced tariffs may be more rigid than the current market pricing. ” He added.

Trump said on Monday that tariffs on imported cars may be announced this week, while a series of reciprocal tariff plans will be announced next week for countries mainly responsible for the U.S. trade deficit.

Trump and his economic advisers have pledged to announce these tax measures on April 2 and may announce some additional industry tariffs.

The euro weakened sharply before the tariffs were announced, falling to $1.075, the lowest since March 5. The euro fell 0.32% against the dollar at $1.0757, and is expected to fall for the sixth consecutive day.

EU aihuaforex.commission Trade aihuaforex.commission Sevkovic met with senior Trump trade officials on Tuesday in an attempt to avoid the high U.S. tariffs on EU goods next week, but the results are unclear. Bank of America said its proprietary liquidity data showed that official departments, including sovereign wealth funds and central banks, accelerated their selling of the euro against the dollar starting last week.

At the same time, Ukraine and Russia accused each other of despising the energy truce agreement reached under the good offices of the United States, while the EU said it would not meet the conditions proposed by Russia for the Black Sea ceasefire plan. The dollar received some boost earlier Wednesday after unexpectedly rising durable goods orders in February.

Minneapolis Federal Reserve Bank President Kashkali said Wednesday that he was unsure of the impact of tariffs on the U.S. economy, noting that tariffs could push up prices, leading to higher interest rates and could slow economic growth, requiring lower borrowing costs.

St. Louis Federal Reserve Chairman Mousalem said that in the short term, U.S. inflation will stagnate above the Fed's 2% target, and even the risk of further rise has increased, and the rise in import taxes may trigger more lasting price pressure. The yen fell 0.42% against the US dollar to 150.5 yen.

Bank of Japan Governor Kazuo Ueda said on Wednesday that the central bank would have to raise interest rates if the continued rise in food costs lead to widespread inflation, but he warned that the basic inflation rate is still below the annual target of 2%. The pound fell to a two-week low as inflation cooled and the latest fiscal statement from the Chancellor of the Exchequer Reeves.

British bond yields have also declined, after the UK Debt Management Office said that bond issuance in 2025/26 will be less than expected, cooling market concerns about a new wave of supply. The pound fell 0.46% to $1.2884 in the late trading session.

Early data showed that the annual rate of inflation in the UK slowed to 2.8% in February from 3.0% in January.

The Australian dollar fell 0.14% against the US dollar at $0.6292. Earlier data showed that consumer inflation slowed in Australia in February.

International News

The head of EU trade expects the United States to impose tariffs of about 20%

EU Trade aihuaforex.commissioner Maros Sefcovic expects U.S. President Trump will announce a tariff of about 20% on the EU next week. After meeting with senior U.S. government officials, Sefcovic said Washington's final plan remains unclear, but tariffs will apply equally to all 27 member states. Sefcovic to the US officialThe White House said that imposing a 20% tariff on imported goods from the EU would be "destructive" for the EU

The White House said Trump will announce car tariffs on Wednesday afternoon

The White House said that U.S. President Trump will announce tariffs on the auto industry on Wednesday. The move will further escalate his game with global trading partners, and the broader U.S. tariff plans will be released next week. White House Press Secretary Karoline Leavitt said Trump will elaborate on his plans in the Oval Office at 4 p.m., adding that the details will be announced by the president himself.

St. Louis Fed Chairman said that the weakening economy could prompt the Fed to cut interest rates

St. Louis Fed Chairman Alberto Musalem said in his speech that the resilience of the economy will allow the Fed to keep its policy unchanged until greater progress on inflation is made. But if the economy and especially the labor market begin to weaken, the Fed may choose to cut interest rates as long as inflation expectations remain stable. “At this critical moment, being patient will help us succeed in seeking full employment, stable price and lasting economic growth,” Musalem said in a speech in Paducah, Kentucky. His basic expectation is that the economy will continue to grow, with inflation falling to 2% by 2027. But he said the forecast’s risks are skewed towards weak labor markets and rising inflation, both of which threaten the Fed’s dual mission.

The British Chancellor proposed a £14 billion package to fill the fiscal gap

After the economic growth forecast this year was cut by half, the Chancellor of the British Chancellor Rachel Reeves announced a £14 billion package of welfare and government spending cuts to fill the fiscal gap and will help her embark on a path that meets fiscal rules. £8.4 billion will aihuaforex.come from cuts in welfare and daily spending, with an additional £3.4 billion mainly including increased revenue from government planning reforms, and £2.2 billion aihuaforex.comes from more efficient tax collection and management. “The working class pays for irresponsible economic behavior, and there is no progress at all,” Reeves said. "The British people trust the government because they know we will never take risks with public finances." Reeves said the world has changed, pointing to international factors that put pressure on economic growth. U.S. President Trump has subverted the global trade system with extensive tariff measures, and European governments have had to spend large sums of money on defense spending as the White House reduces support for Europe in the Russian-Ukrainian conflict.

The British Chancellor of the Exchequer issued a spring statement of the Labor Government in the House of aihuaforex.commons

The British Chancellor of the Exchequer Reeves issued a spring statement of the Labor Government in the House of aihuaforex.commons. She said that our transformation plan has shown results when preparing to restart housing construction in the UK with plans to build 1.5 million new homes. The Office of Financial Responsibility lowered its economic growth forecast for this year but raised expectations for next year and in the aihuaforex.coming years; at the end of the forecast period, it is expectedThe scale of the economy will exceed previous expectations. Through our planning reforms, we expect the economy to increase by £6.8 billion by 2029-30, with an average actual disposable income per person increasing by £500 per year. As a result of the changes in welfare, 250,000 people may fall into poverty, which is underlined by the Office of Budget Responsibility (OBR). Express confidence in personalized assistance provided through a £1 billion investment to help people return to work. Unless fiscal rules change, I may face the need to raise taxes again or cut expenses further in the upcoming October budget. Although there are many speculations about the Conservative Party’s emergency budget, I will not change my tax policy today. Our planning reforms, assessed by the Office of Financial Responsibility, are expected to boost economic growth by £680 million and provide £340 million to restore our free spending space.

Russian Vice Premier: It will take a long time to repair damage to the "Sujia" natural gas hub. Russian Vice Premier Novak said on March 26 local time that Russia is conducting a aihuaforex.comprehensive assessment of the damage to the "Sujia" natural gas hub. As a key node on the "North Stream" pipeline, the hub requires a long repair time. The specific repair process depends on what energy cooperation agreements can be reached with European countries in the future. Novak also said that the restoration of the "Croport King" oil pump station, which was attacked by Ukrainian drones, is underway, but due to equipment supply and engineering aihuaforex.complexity, it is impossible to clarify the aihuaforex.completion timetable.

U.S. Congressional Budget Office: The Treasury Department may have payment defaults as early as August

U.S. Congressional Budget Office (CBO) warns that if lawmakers cannot raise or suspend debt ceilings, the federal government can guarantee that all bills can be used up as early as August. The Treasury Department has been using special accounting operations since January 21 to avoid breaking the $36.1 trillion debt ceiling launched earlier this year. But the department has not yet made specific predictions on when these measures will be exhausted.

Domestic News

Ministry of aihuaforex.commerce: Organize a series of activities in China and create a brand of iconic consumption expansion activities

The General Office of the State Council forwarded the Ministry of aihuaforex.commerce's notice on "Several Measures to Support the Cultivation and Construction of International Consumer Center Cities". It mentioned that the "Buy in China" series of activities should be organized well and a brand of iconic consumer expansion activities should be created. Support the holding of more high-level international sports events and performance activities. Further optimize the approval and safety permit process for aihuaforex.commercial performances, sports aihuaforex.competitions and other activities, shorten the approval time limit, reduce approval materials, and promote "full process online service" and "one-stop service". On the premise of ensuring safety, increase the proportion of available invoices for large-scale mass activities such as aihuaforex.commercial performances and sports aihuaforex.competitions.

Ministry of aihuaforex.commerce: Promote the deepening application of artificial intelligence, virtual reality, big data and other technologies in the consumption field to create a number of "artificial intelligence + consumption" scenarios

The General Office of the State Council forwarded the Ministry of aihuaforex.commerce's "On Supporting the Cultivation and Construction of International Consumer Center Cities"Measures”, hold the China International Consumer Center City Boutique Consumption Month well and increase the supply of high-quality goods and services. Promote the deepening application of technologies such as artificial intelligence, virtual reality, and big data in the consumer field, and create a number of "artificial intelligence + consumption" scenarios. Continue to carry out old-for-new consumer goods, and accelerate the promotion of smart homes, smart home appliances, smart connected new energy vehicles and other products. Deeply implement the "three products" of consumer goods (increase variety, improve quality, and create brand) strategy, carry out the "three products" national tour with high quality, and build a square array of Chinese consumer goods in a graded manner.

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