The S&P 500 continues its downward slide, now sitting at 5,542, marking a notable correction from recent highs. The index has now fallen into correction territory, shedding over 10% in the past month. Analysts at Morgan Stanley warn that if the 5,500 level is breached, the decline could accelerate as market sentiment continues to deteriorate. The ASX 200 has followed a similar trajectory, dipping below its 200-day moving average, signalling further weakness in the Australian market.

With equities under pressure, gold is standing strong, with major financial institutions including J.P. Morgan and BlackRock doubling down on their bullish stance. J.P. Morgan, which has advocated gold exposure for the past two years, maintains its view that macroeconomic uncertainty makes gold a critical hedge. BlackRock’s latest investment commentary reinforces this position, noting that central bank demand and a weaker US dollar continue to underpin the metal’s strength. Gold prices are edging closer to US$3,000 per ounce, reinforcing its role as a key store of value amid market turmoil.

Meanwhile, Donald Trump has just bought a Tesla, turning a routine car purchase into what some are calling the world’s biggest car commercial. The move has raised eyebrows given Trump’s historical stance on electric vehicles and the ongoing trade tensions between the US and China, where Tesla manufactures a significant portion of its vehicles. Whether it’s political theatre or a genuine purchase, the media frenzy has undoubtedly kept Tesla in the spotlight.

On the economic front, US inflation data landed slightly softer than expected, with the Consumer Price Index (CPI) increasing by 0.2% for the month, bringing the year-on-year rate to 2.8%. The Producer Price Index (PPI) followed a similar pattern, rising 0.2% for the month and 3.2% year-on-year. These figures suggest inflation remains relatively controlled, but markets are watching closely for any signs that could influence the Federal Reserve’s next interest rate decision.

With continued equity weakness, growing safe-haven demand for gold, and mixed inflation data, investors remain on edge. The coming weeks will be crucial in determining whether markets stabilise or if further downside pressure is on the horizon.

Market Snapshot

Gold – US$2986
Silver – US$33.87
US500 – 5544
ASX200 – 7744
AUD/USD – 0.628

Market Indicators to Watch

US Retail Sales Data – Tuesday, 18 March 2025, at 11:30 pm AEST, providing insight into consumer spending trends.
Federal Reserve Interest Rate Decision – Wednesday, 19 March 2025, at 5:00 am AEST, shaping monetary policy direction.
Australian Unemployment Rate – Thursday, 20 March 2025, at 11:30 am AEST, offering insight into the domestic labour market.
China GDP Growth Rate – Friday, 21 March 2025, at 1:00 pm AEST, indicating the economic strength of Australia’s largest trading partner.

Gold Futures Technical Analysis

Technical indicators for Gold Futures suggest a STRONG BUY on both monthly and weekly analyses.

Technical Indicators – Monthly Projections

RSI(14)	Overbought
STOCH(9,6)	Buy
STOCHRSI(14)	Overbought
MACD(12,26)	Buy
ADX(14)	Buy
Williams %R	Overbought
CCI(14)	Buy
ATR(14)	High Volatility
Highs/Lows(14)	Buy
Ultimate Oscillator	Buy
ROC	Buy
Bull/Bear Power(13)	Buy