Markets Watch as Powell Meets Trump, GDP Contracts, and Housing Tilts to Buyers

Markets were shaken this week after U.S. GDP figures for the March quarter revealed a surprise contraction of 0.2% - the first economic decline in three years. The downturn was largely fuelled by a surge in imports ahead of expected new tariffs, which widened the trade deficit and dragged heavily on growth. Consumer spending also cooled, with the slowest increase seen since the pandemic era. Despite a strong 24% lift in business investment, it wasn’t enough to offset the broader slowdown.

In the background of this economic shift, Federal Reserve Chair Jerome Powell met with Donald Trump for the first time this election cycle, prompting speculation around potential political pressure on future Fed policy. While no public statements followed the meeting, investors are bracing for more noise around central bank independence as the campaign heats up.

At the same time, the next wave of U.S. tariffs is set to take effect imminently, though legal challenges are mounting in federal courts. Industry groups are questioning the scope and legitimacy of the executive orders, and uncertainty is creating ripples across sectors reliant on imported goods.

Meanwhile, the U.S. housing market appears to be swinging in favour of buyers. More listings and signs of price softening are emerging across metro regions, marking a shift from the frenzied seller’s market seen over the past two years.

Gold prices have edged down slightly, now trading at $AU5144, though the broader trend remains strong. Analysts view the dip as a short-term consolidation. Silver continues to attract interest, buoyed by both industrial demand and investor appetite amid uncertain conditions.

With a weakening U.S. dollar, volatile political signals, and the economic pulse now under strain, the markets are heading into June with a cautious outlook.

Market Snapshot

• Gold – $AU5144
• Silver – $AU51.72
• US500 – 5894
• ASX200 – 8365
• AUD/USD – 0.64

Gold Futures Technical Analysis  

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

Technical Indicators - Monthly Projections  

Summary for Monthly Forecast: Strong Buy  

Charts today

Gold Daily, with 200MDA

Silver Daily, with 200MDA

US500 Daily, with 200MDA