TPTP 04/16/25

Market Minute 4/16/25:⏱️Gold Soars, Dollar Dumps Amid "Sell US" Trade!

Mike Larson | Editor-in-Chief

Precious metals are on fire again, with gold up more than $80 an ounce recently and silver topping $33. Crude oil is a bit higher, stocks are modestly lower, and Treasuries are flat. The dollar continues to get dumped.

The bull market in gold is a sight to behold! The yellow metal jumped ANOTHER 2.5% earlier today to ANOTHER all-time high above $3,320 an ounce. Silver also rode its coattails, climbing 2%. The moves come as the US Dollar Index continues to sink, losing almost 7% year-to-date in what is shaping up to be its worst year since 2017.

Rising US-China trade tensions are partially driving the action. On that score, US negotiators are trying to isolate China by assembling a bloc of friendlier countries who (they hope) will place restrictions on Chinese trade. But a broader “Sell the US” trade is what’s really behind it.

Specifically, global investors are dumping stocks, bonds, and the dollar – and moving capital into other markets around the world. The good news (for now) is that Treasuries are catching a break this week after a round of aggressive selling last week. That could ease pressure on domestic US borrowers (and the US housing market).

“Sell US” Trade Drives Dollar Down, Gold Up

Elsewhere, semiconductor stocks are sliding on news out of Nvidia Corp. (NVDA). The chip giant said it would take $5.5 billion in charges because the US is restricting exports of its H20 Artificial Intelligence (AI) chips to Chinese customers. NVDA gets about 13% of its revenue from the country.

The chip-making equipment supplier ASML Holding NV (ASML) also said its 2025-2026 outlook is getting much cloudier due to the unfolding trade war. Coming into today, NVDA and ASML shares were down 16.4% and 1.2% year-to-date.

The BIGGEST Reason Gold is Soaring, the Dollar is Sinking, and Treasuries are in Trouble

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