Gold ETF Surges Towards Record High Amid Market Volatility

Gold ETF Approaches All-Time HighThe SPDR Gold Shares (GLD) rose 0.8% in early trading Thursday, reaching $272.41 and setting the stage for a potential all-time closing high. If the fund maintains these gains, it will surpass its previous record close of $272.21 set on February 24, according to Dow Jones Market Data.

Stock Market Declines Amid Tariff ConcernsMajor stock indices plunged on Thursday following fresh tariff threats from the Trump administration. The Dow Jones Industrial Average sank over 400 points, reflecting broad market weakness. The S&P 500 and Nasdaq both fell over 1%, with widespread selling pressure across various sectors. Only nine of Investor's Business Daily's 197 industry groups managed to post gains of 1% or more.

Among the few bright spots were gold miners, as rising gold prices approached the $3,000 per ounce milestone. Gold futures for April delivery climbed nearly 1.4%, reaching an intraday high of $2,990. This surge boosted shares of Alamos Gold, which led the gold and silver mining sector with a 2.5% gain, hitting a session high of $25.31. The stock remains up 18% since breaking out from a three-month consolidation pattern at $21.45.

Nasdaq and S&P 500 Extend LossesThe Nasdaq Composite, which had rebounded earlier in the week, dropped over 1.5% on Thursday. At its session low of 17,346, the index has now declined 10.2% since the beginning of the year and remains down 14% from its all-time high of 20,204. These losses confirm that technology stocks are undergoing a significant correction.

Meanwhile, the S&P 500 fell 1%, while small-cap stocks initially showed resilience before succumbing to losses, with the Russell 2000 declining 1.3%. Trading volume was lower compared to Wednesday, with Nasdaq volume down 8% and NYSE volume down 6%.

Home Depot and Dow Jones Components Hit HardThe Dow Jones Industrial Average dropped 1% by midday, with Home Depot among the worst-performing components. The stock declined over 3%, marking its sixth consecutive daily loss. After breaking below its 200-day moving average earlier in March, Home Depot has failed to find support, signaling a potential prolonged downtrend.

The U.S. government’s decision to impose 25% tariffs on Canadian steel and aluminum imports has added pressure to retailers like Home Depot. Potential tariffs on wood products could further impact costs, heightening investor concerns. Historically, a sharp drop below the 200-day moving average often serves as a sell signal, with stocks undergoing a consolidation phase before potentially rebounding.

Economic Data: Inflation and Jobless ClaimsEconomic indicators showed mixed results on Thursday. U.S. producer prices remained flat in February compared to the previous month, below the consensus estimate of a 0.3% increase. However, January’s wholesale inflation was revised upward to a 0.6% gain from the initial 0.3% estimate.

Weekly jobless claims came in at 220,000, slightly better than the forecast of 230,000. The four-week moving average rose to 226,000, reflecting an uptick in continued claims. Economists are closely monitoring labor market data to assess potential impacts from escalating trade tensions.

Meta and Semiconductor Stocks Under PressureMeta Platforms (formerly Facebook) extended its correction, dropping nearly 3% and reversing a two-day gain. On March 4, the stock triggered a sell signal after surrendering all gains from its breakout at $638.40. At its peak, Meta had posted a 16% gain before tumbling below its 50-day moving average, a bearish technical development.

Semiconductor stocks also saw significant volatility. Intel soared over 15% intraday following the announcement of Lip-Bu Tan as its new CEO. Tan, formerly chairman of Cadence Design Systems, is expected to drive strategic growth at Intel. Despite the surge, Intel remains below its 200-day moving average and is not yet considered a buy opportunity.

Tariff Threats Shake Global MarketsPresident Donald Trump’s latest tariff threats have roiled global markets. Reports indicate that the administration is considering imposing duties of up to 200% on European wine and spirits. This news weighed heavily on LVMH, the luxury goods conglomerate that owns Moët & Chandon and Hennessy. LVMH stock dropped more than 1%, extending its decline below its 200-day moving average and erasing its early 2025 gains.

French spirits producer Pernod Ricard also fell over 4% in heavy trading, signaling broader concerns about the potential impact of trade disputes on European luxury goods.

Market Outlook: Gold, Bonds, and Crude OilThe U.S. 10-year Treasury yield edged up by two basis points to 4.34%. Gold prices continued to climb, rising 0.5% to $2,961 per ounce, driven by safe-haven demand amid market uncertainty. Meanwhile, crude oil prices retreated, with front-month NYMEX crude futures declining 0.9% to $67.07 per barrel.

As market conditions remain volatile, investors are closely monitoring developments in tariffs, economic data, and corporate earnings. While gold and other safe-haven assets continue to attract interest, equity markets face heightened risks as geopolitical tensions and economic uncertainties persist.