Gold Hits Record $3,357 Amid Trump-Japan Tariff Talks

Gold surged to a record high of $3,357.40 per ounce during Asian trading as markets reacted to US President Trump's surprise appearance at US-Japan tariff talks. Nasdaq futures rose 0.6% after a 3% drop on Wednesday, while EUROSTOXX 50 futures dipped 0.3%, and the US dollar gained modestly against the euro and yen. The ECB is expected to cut interest rates for a seventh time, while earnings from Sainsbury’s and updates from chipmakers and financial giants like American Express and Blackstone are in focus. 

Equities 

The FTSE 100 rose 0.3% on Wednesday, supported by gains in energy and gold mining shares after a softer-than-expected inflation reading in the UK. Oil producers tracked rising crude prices, with the energy sub-index climbing 2.7%. This followed reports that Iraq plans to cut production in April and renewed hopes for progress in US-China trade talks.  

Gold stocks also benefited from safe-haven demand as the price of gold crossed $3,300 per ounce. Endeavour Mining led the FTSE 100, climbing 6.3%, while Hochschild rose 5.5% on the FTSE 250. 

Among individual UK companies, Oxford Instruments jumped 7.7% after issuing an annual profit forecast that matched expectations. In contrast, Bunzl fell 25.3% after it cut its 2025 margin forecast and suspended its share buyback programme, prompting its worst trading day on record. WH Smith slipped 1% following a small dip in first-half profits, though the retailer maintained its full-year guidance.  

UK inflation fell to 2.6% in March, easing slightly from February's 2.8%, though economists warned that upcoming increases in utility bills and employer taxes could drive inflation back up. 

In the US, the major indices closed sharply lower. The Nasdaq fell 3.1%, the S&P 500 lost 2.2%, and the Dow dropped 1.7% after comments from Federal Reserve Chair Jerome Powell and a warning from Nvidia about the impact of US export curbs to China.  

Powell said that first-quarter economic growth appears to be slowing and noted that higher tariffs may mean more persistent inflation. He added that the Fed would wait for more clarity before making any changes to interest rates. 

Nvidia shares fell 6.9% after disclosing that it would take $5.5 billion in charges due to US restrictions on exporting its H20 AI chip to China, a key market for the company. AMD also came under pressure, dropping 7.3%, while the semiconductor index slid 4.1%. ASML added to concerns in the sector after warning that new tariffs had created more uncertainty for its outlook. Market volatility rose, with the Cboe Volatility Index ending the session at 32.64. Trading volume remained high, though slightly below the 20-day average. 

Forex & Commodities 

The US dollar edged higher ahead of the Easter break, rebounding from a seven-month low against the yen after Japan confirmed that foreign exchange was not discussed during recent trade talks in Washington. The dollar rose to 142.61 yen after briefly touching 141.62 in early Asian trading. The euro eased slightly to $1.1362 but remains on track for its fourth consecutive weekly gain, even as the European Central Bank is expected to cut its deposit rate by 25 basis points to 2.25% later today. Sterling was steady at $1.3216 following a softer-than-expected UK inflation reading of 2.6% in March. 

Despite a brief pullback, gold remains elevated after reaching an all-time high of $3,357.40 per ounce earlier in the day. Spot prices dipped slightly to $3,338.81 as investors locked in profits, but the precious metal is still up more than 3% this week.  

Oil prices advanced for a third straight session, supported by new US sanctions on Chinese buyers of Iranian oil and further planned output cuts from several OPEC members, including Iraq and Kazakhstan. Brent crude rose 0.85% to $66.41 per barrel, while West Texas Intermediate gained 1.04% to $63.12. Both benchmarks are heading for their first weekly rise in three. Wednesday’s inventory report showed large draws in US gasoline and distillate stocks, which contributed to the upward move, while refining activity appeared to slow.