RBA Holds Rates Amid Global Trade Concerns

Spot pricing for Gold $AU4954

Spot pricing for Silver $AU53.65

Spot pricing for Platinum $AU1584

The Reserve Bank of Australia has held the cash rate steady at 4.1%, with Governor Michele Bullock noting that while inflation has moderated significantly from its 2022 highs, the global economic backdrop remains too uncertain to justify any move. The RBA’s cautious stance was largely attributed to rising concerns over international trade tensions, particularly those emanating from the United States. Bullock confirmed the RBA remains prepared to shift policy if needed, especially if global trade conditions begin to weigh more heavily on domestic growth.

Across the Pacific, President Donald Trump has declared April 2 as “Liberation Day,” coinciding with the introduction of broad and sweeping tariffs designed to rebalance what he describes as unfair trade relationships. A 20% blanket tariff on nearly all imports has been announced, with additional measures aimed at specific sectors like automotive, agriculture, and steel. While politically popular in some quarters, economists are raising the alarm, warning that this protectionist policy could fuel inflation, disrupt supply chains, and trigger retaliatory tariffs from major trade partners. The early consensus is that American consumers and exporters alike may be the ones to bear the brunt of the impact.

Markets have responded to this news with fresh volatility. The S&P 500 has shown some strength over the past few sessions, but the rebound is drawing scepticism. Many analysts are calling it a classic “dead cat bounce”—a short-lived rally within a longer-term downtrend. With investor sentiment fragile and economic headwinds strengthening, the rally appears to lack the conviction of a sustainable recovery. Market participants are watching closely to see if this recent strength holds or if further declines are in store.

Gold continues to gain momentum, with many wondering how high can this bull market go. With no market relief in sight, many are suggesting we’re at the beginning of this gold bull cycle and it can move much higher. 

Enjoy today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA