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April 23, 2025

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$4,000 Gold? Analysts Eye New Highs on Inflation and Geopolitical Risk

On Monday, the Dow dropped over 1,000 points after President Trump’s new round of criticism directed at Fed Chair Jerome Powell. The selloff reflects continued volatility driven by geopolitical tensions and uncertainty stemming from the ongoing trade war.

Meanwhile, the price of gold continued climbing to record highs, the U.S. dollar slipped to a three-year low, Bitcoin is working to recover the final 20% from its peak, and the broader market continued its downward slide.

This comparative snapshot on PerfCharts illustrates the bigger picture.

FIGURE 1. PERFCHARTS OF GOLD, DOLLAR INDEX, BITCOIN, AND THE S&P 500.  Safe haven is the name of the game.

When capital rotated out of stocks and Bitcoin, did it retreat to cash or gold? It’s a reasonable question, as cash appears to be circling the drain amid gold’s ascent.

Fear Trade Tailwinds

So, what’s going on, particularly with gold prices? Here’s a general snapshot:

  • The U.S. dollar index drop signals a loss of global confidence in the currency.
  • The possibility of Trump removing Powell raises fears about the Federal Reserve’s independence, especially as inflation concerns mount due to rising tariffs.
  • Fed Chair Powell indicated that rate hikes, not cuts, may be needed to control inflation.
  • Global trade tensions are intensifying, with China slashing U.S. oil imports and pivoting to other countries.
  • As the price of gold has broken through major resistance levels, SPDR Gold Shares (GLD) just crossed $100 billion in assets under management for the first time.

One More Thing: The Mar-a-Lago Accord

The so-called “Mar-a-Lago Accord” is an idea tied to Trump’s economic team that would pressure U.S. allies to accept a weaker dollar and lower returns on U.S. debt in exchange for military protection.

If it happens, the dollar would devalue further, making U.S. exports more competitive. Imports would become more expensive, though. A weaker dollar may continue to boost gold and Bitcoin, both viewed as safe havens. As for the S&P 500, some companies, especially exporters, might benefit, but concerns about inflation or trade conflicts could drag the market down even further.

Gold at $4,000 by 2026

While several analysts, such as those at UBS, have set a $3,500 price target for gold, the Goldman Sachs Group forecasts gold at $4,000 by 2026.

Let’s take a look at where gold is now. Take a look at this daily chart.

FIGURE 2. DAILY CHART OF GOLD. With gold at all-time highs, the pullback could bounce at one of these support levels.

While gold’s Relative Strength Index (RSI) reading is registering as “overbought,” you’ll have to wait and see if the current dip develops into a pullback. If it does, the key market highs and lows highlighted by the Price Channels (extended by the magenta dotted lines) are likely to serve as support. I also overlaid the Ichimoku Cloud to provide a wider projected support range into the near future.

If you’re bullish on gold and expecting to reach the $3,500 to $4,000 range as forecasted by analysts, you can use these support levels as favorable entry points. The $2,956 level is especially important; it marks a key swing low, and a close below it could call gold’s uptrend into question.

As for “Digital Gold” (Bitcoin)…

The other safe haven asset, as some would call it (emphasis on “some”), is Bitcoin ($BTCUSD). Let’s take a look at its current price action by zooming in on this daily chart.

FIGURE 3. DAILY CHART OF BITCOIN ($BTCUSD). It’s at a juncture point, currently testing resistance at $88,505.

Looking at the price channels, you can see how Bitcoin has been making consecutive lower lows over the last three months. It has also been making lower highs until March, where the high of $88,505 was tested three times, and that is where the digital asset is currently trading.

The Ichimoku Cloud range and the blue-shaded area highlight this resistance level. If the market decides on Bitcoin as a reliable safe haven, you will see its price break above this resistance level and challenge the next resistance level at $100K before challenging its all-time high at around $109K. Currently, its RSI reading is lifting above 50 and rising, indicating that the crypto has room to run before approaching any range that may be considered overbought.

What About the Dollar?

The weekly chart of the US Dollar Index ($USD) below highlights the key support level the dollar has just broken below.

FIGURE 4. WEEKLY CHART OF THE U.S. DOLLAR. Near-term support is near, but will it hold?

The US Dollar Index is at a three-year low, with support at $97 and $95. The RSI also indicates that the dollar is entering oversold levels. But these technical levels might not mean much considering the alleged intentional devaluation of the dollar. This trend appears to be guided more by political strategy than market fundamentals.

Meanwhile, the fear trade into safe-haven assets is likely to intensify until monetary policy and the current geopolitical chess moves generate a clearer sense of direction and stability.

At the Close

As far as gold’s rise, sentiment is doing the heavy lifting right now, but it’s rooted in legitimate fundamental risks. If those risks persist or worsen, fundamentals may eventually validate even higher price levels. Hence, the Goldman projection of $4,000 an ounce. If you’re looking to enter gold or Bitcoin, I’ve laid out the key support levels for gold and potential headwinds for Bitcoin.

Watch those price levels closely, and stay tuned to the latest geopolitical developments.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Top 5 Canadian Biotech Stocks in 2025

Biotech is a dynamic industry that is driving scientific advances and innovation in healthcare. In Canada, the biotech sector is home to companies pursuing cutting-edge therapies and medical technologies.

According to Grandview Research, the global biotech market is expected to grow at a compound annual growth rate of 13.96 percent between 2024 and 2030 to reach a value of US$3.08 trillion.

Read on to learn what’s been driving these Canadian biotech firms.

1. Bright Minds Biosciences (CSE:DRUG)

Year-on-year gain: 2,681.82 percent
Market cap: C$322.61 million
Share price: C$45.90

Bright Minds Biosciences is focused on developing novel treatments for neuropsychiatric disorders and pain.

Its portfolio consists of serotonin agonists designed to target neurocircuit abnormalities that make disorders like epilepsy, post-traumatic stress disorder and depression difficult to treat. The company’s drugs have been designed to potentially retain the powerful therapeutic aspects of psychedelic and other serotonergic compounds, while minimizing their side effects, thereby creating superior drugs to first-generation compounds such as psilocybin.

In October 2024, the company’s share price surged nearly 1,500 percent in a single session after global pharmaceutical company H. Lundbeck announced its intention to acquire Longboard Pharmaceuticals. Both Longboard and Bright Minds have agonists targeting the 5-HT2C receptorin their pipelines.

Bright Minds’ 5-HT2C agonist candidate, BMB-101, will target classic absence epilepsy and developmental epileptic encephalopathy. The company is currently evaluating Phase II trials in collaboration with Firefly Neuroscience (NASDAQ:AIFF).

In March of this year, Bright Minds added five world-renowned leaders in epilepsy research to its scientific advisory board.

2. ME Therapeutics Holdings (CSE:METX)

Year-on-year gain: 145.9 percent
Market cap: C$235.71 million
Share price: C$9.00

ME Therapeutics is a biotechnology company focused on developing cancer-fighting drug candidates that can increase the efficacy of current immuno-oncology drugs by targeting suppressive myeloid cells, which have been found to hinder the effectiveness of existing immuno-oncology treatments. Immuno-oncology is a relatively new area of cancer drug research and has shown promising results when used to treat cancer with low survival rates.

In December 2023, the company shared research done in collaboration with Dr. Kenneth Harder at the University of British Columbia. The work suggests that ME Therapeutics’ antibody, h1B11-12, successfully blocks a protein that fuels breast and colon cancer growth (G-CSF). Trial planning efforts are ongoing, and the company expects development of a cell line for future production of the drug to be finished in the latter half of 2025.

In addition, the company is part of an ongoing collaborative effort to develop therapeutic MRNA delivery methods to myeloid cells with NanoVation Therapeutics, a privately owned biotech company that develops customized nucleic acid and lipid nanoparticle technologies to empower genetic medicine.

The collaboration has already resulted in two new MRNA formulations, for which testing began on October 4, and has demonstrated encouraging anti-cancer activity in a preclinical model of colorectal cancer.

On March 3, ME Therapeutics shared that it is exploring a listing on the Nasdaq or the New York Stock Exchange.

3. Hemostemix (TSXV:HEM)

Year-on-year gain: 80 percent
Market cap: C$13.36 million
Share price: C$0.09

Hemostemix is a clinical-stage biotech company focused on developing autologous stem cell therapies, an approach that uses a patient’s own cells to theoretically enhance safety and efficacy. Its main product, ACP-01, is a cell therapy derived from a patient’s blood to promote tissue repair and regeneration in areas affected by disease.

The company announced its first sales orders for ACP-01 on January 29 and has been working to expand internationally and attract new investment.

Hemostemix is currently collaborating with Firefly Neuroscience on a Phase 1 clinical trial of ACP-01 for vascular dementia. As of writing, efforts to fully enroll the trial to its target size are underway.

4. Eupraxia Pharmaceuticals (TSX:EPRX)

Year-on-year gain: 17.07 percent
Market cap: C$173.51 million
Share price: C$5.28

Eupraxia Pharmaceuticals focuses on developing locally delivered therapeutics for patients with unmet medical needs. Its primary focus has been orthopedics and oncology. Eupraxia acquired EpiPharma Therapeutics in late 2023, absorbing the company’s lead candidate EP-104GI.

In February, the company released positive data from the sixth cohort of its Phase 1b/2a trial for EP-104GI in eosinophilic esophagitis. It plans to release additional data periodically, with 12 week data for the trial’s seventh cohort expected in late Q2 2025.

5. Microbix Biosystems (TSX:MBX)

Year-on-year gain: 4.48 percent
Market cap: C$48.17 million
Share price: C$0.35

Microbix Biosystems manufactures antigens and quality control products used in the development of diagnostic tests. They also develop products to ensure test accuracy.

In January, Microbix partnered with the American Proficiency Institute to launch a pilot program to validate the accuracy of molecular assays in testing the H5N1 strain of the influenza A virus.

In March, the company joined the EPICC HPV Elimination Partnership to support test accuracy by supplying materials to support the accuracy of HPV testing efforts. These strategic collaborations highlight the company’s commitment to ensuring reliable and accurate diagnostic testing worldwide.

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

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This post appeared first on investingnews.com

Nickel Price Update: Q1 2025 in Review

Nickel prices have largely trended down since breaking US$20,000 per metric ton in May 2024.

The decline has been attributed to refined nickel oversupply, driven by high output from Indonesia, which mined an estimated 2.2 million metric tons of nickel in 2024 and accounted for more than 50 percent of global output.

The threat of US tariffs has also weighed heavily on markets that are reliant on nickel and its downstream products, such as the stainless steel and electric vehicle battery industries.

These factors pushed nickel to five year lows in the US$15,000 range in Q1.

What happened to the nickel price in Q1?

Nickel price, January 2 to April 22, 2025.

Chart via Trading Economics.

While nickel has trended down for the past year, 2025 began with upward momentum. It opened the year at US$15,040 on January 2 and rose to US$16,080 before declining to close out the month at US$15,230.

Nickel prices started to gain briefly at the beginning of February, increasing to US$15,875 on February 6 before experiencing volatility until the end of the month, finishing at US$15,590 on February 28.

The start of March saw upward movement, and nickel hit a year-to-date high of US$16,720 on March 12.

Prices for the base metal remained above the US$16,000 mark until the end of March, when substantial pressures caused levels to plunge to US$14,150 on April 8.

What factors impacted nickel in Q1?

Over the past several years, oversupply has presented a significant headwind for nickel prices.

Due to heavy investment from China, Indonesia has emerged as the world’s dominant nickel supplier. However, even though its refined output has remained high, Indonesia has faced a tight nickel ore market because of reduced quotas, which have compelled smelters to import record volumes from the Philippines.

A recent Filipino government proposal to follow Indonesia’s lead in banning exports of raw nickel products could disrupt the situation and introduce further challenges for refiners, impacting global supply chains.

The proposal arose amid rumors of higher mining royalties that have circulated since the start of the year. This speculation boosted nickel prices as higher production costs started to be factored into prices.

The royalty hikes were approved on April 11, and will raise the current 10 percent rate to between 14 and 19 percent, depending on the nickel price. Lower-quality nickel mattes used in battery production will incur a 2 percent royalty.

Jason Sappor, senior analyst for metals and mining research at data provider S&P Global Commodity Insights, noted that the increase will pose another challenge for the industry.

Indonesian nickel miners previously asked the government to reconsider the change.

In a letter to government officials, industry stakeholders stated that the increases to mining royalty levels in the country are “unrealistic and do not reflect the current state of the industry.”

Another factor that impacted the nickel industry during the first quarter of the year was the threat and eventual implementation of US tariffs against China, the world’s largest consumer of nickel.

Ewa Manthy, commodities strategist with ING, suggested tariffs will further impact a beleaguered nickel market.

“London Metal Exchange (LME) nickel has been mostly rangebound amid heightened trade tensions,’ she said.

Manthy’s prediction has held true so far, with nickel prices plummeting 11.5 percent in the week following US President Donald Trump’s tariff announcement on April 2. The move has sparked fears among investors who worry that the escalating trade war will push the world into a global recession.

Even though nickel rebounded after Trump put a pause on larger reciprocal tariffs, there is still a high level of uncertainty regarding nickel demand, especially as the effective tariff rates on China have grown to 145 percent.

Tariffs set to weigh on weak nickel demand

Tariffs are unlikely to affect nickel supply in the short term; however, they could significantly impact demand. The effects will be more pronounced in the US, as tariffs will more than double the costs of goods from China for importers.

The primary destination for nickel is the production of stainless steel.

While long-term global demand is expected to remain robust, with refined nickel projected to see a 4.6 percent compound annual growth rate between 2023 and 2035, there are more immediate headwinds.

Demand for stainless steel in China’s housing sector and slower growth in home appliances has dragged down overall nickel demand in the Asian nation. Although the overall effects could be worse, government policy and stimulus have only provided marginal support. Chinese stainless steel markets were also affected as new carbon tariffs and anti-dumping duties from Europe’s carbon border adjustment mechanism came into effect.

This has led analysts to predict another year of surpluses in China’s stainless steel market, with production increasing by 10.6 percent year-on-year in the first quarter and March output coming to 3.58 million metric tons. Even so, stockpiles stand at 155,000 metric tons, down significantly from 333,000 metric tons in Q1 2024.

The size of the stainless steel market may help moderate a decline in demand from the electric vehicle battery market, which is another significant destination for nickel. According to an April 14 report from S&P Global, the fall in battery demand comes despite growing demand for electric vehicles in both China and Europe; this has been attributed to producers transitioning to nickel-free battery chemistries, particularly lithium-iron-phosphate.

Producers see a greater cost advantage in this composition, and the switch has caused demand for nickel-manganese-cobalt batteries to shrink by 19 percent from January to February.

Due to this fallout, battery precursor producer CNGR Advanced Material (SZSE:300919) said it would be pausing investment in its South Korean nickel smelting project.

The battery sector represented 11.5 percent of total nickel demand in 2024.

Nickel price forecast for 2025

The short term for nickel could very well hinge on how Trump’s tariffs affect the global economy.

“A slowdown in global economic activity would have a detrimental impact on China’s exports of nickel-containing consumer goods, denting global primary nickel demand in a market already grappling with oversupply due to expanding production in top primary nickel producers Indonesia and China,” Sappor said.

He added that weaker fundamentals will likely increase bearishness in the nickel market and ultimately work to further depress prices for the base metal on the LME.

“Considering these potential dynamics as well as further evolutions in the Trump administration’s trade tariff policies, we expect nickel prices to remain volatile in the near term,” Sappor stated.

Manthy is also pessimistic about a market turnaround in the near to medium term.

“The main downside risk to our supply and demand outlook is further downgrades to nickel demand from the electric vehicle sector, but this could be offset by no growth in Indonesian supply. The medium-term supply and demand balance is not supportive of a significant rise in nickel prices,” she said.

For investors, a bear market might provide opportunities, but the risk is that nickel prices may still have a ways to go before they bottom out. The next quarter could offer more certainty in global financial markets.

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

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This post appeared first on investingnews.com

Trump’s Fed Criticism Sparks Investor Concerns

Trump’s Fed Criticism Sparks Investor Concerns

The recent spotlight on Trump’s Fed Criticism has sparked unease among investors and financial analysts alike. President Donald Trump’s repeated public attacks on Federal Reserve Chair Jerome Powell have amplified concerns over the central bank’s independence. As a result, markets have reacted with volatility, and investor sentiment has taken a noticeable hit.

Market Reactions to Political Pressure

Wall Street’s response to Trump’s Fed Criticism was swift. Major stock indices, including the S&P 500 and Nasdaq, posted losses amid uncertainty over future monetary policy decisions. Investors fear that political attempts to sway the Federal Reserve’s agenda may undermine its objectivity. If monetary policy is dictated by short-term political goals rather than long-term economic data, the implications could be severe for inflation, interest rates, and overall economic health.

Why Federal Reserve Independence Matters

One of the cornerstones of a stable economy is a politically neutral central bank. Trump’s Fed Criticism has called that neutrality into question. The Federal Reserve must be able to act without external pressure to maintain credibility in the eyes of global markets. Political interference could compromise its ability to control inflation or manage unemployment rates effectively.

Investor Sentiment and Future Outlook

Investor confidence remains fragile. Many market participants have shifted assets into safer investments such as gold and U.S. treasuries, seeking shelter from potential turmoil. Economic advisors stress the importance of maintaining clear, data-driven policy guidance, especially as the U.S. navigates ongoing trade issues and inflation concerns.

In the coming weeks, the Federal Reserve’s actions will be closely watched. Should Trump’s Fed Criticism intensify, it could further erode market stability and investor trust in U.S. monetary policy.

Source: Yahoo Finance

 

The post Trump’s Fed Criticism Sparks Investor Concerns appeared first on FinanceBrokerage.

Oil Prices Rebound After Trump’s Criticism of Powell

Oil Prices Rebound After Trump’s Criticism of Fed Chair Powell

On April 22, 2025, oil prices rebound experienced a modest rebound following a significant drop the previous day. The initial decline was triggered by President Donald Trump’s renewed criticism of Federal Reserve Chair Jerome Powell, which unsettled financial markets and raised concerns about the central bank’s independence.

Market Reaction to Political Commentary

President Trump’s comments on Monday intensified investor fears regarding the Federal Reserve’s autonomy in setting monetary policy. The criticism led to a broad sell-off in equities and commodities, with oil prices bearing the brunt of the market’s anxiety.

Short-Covering Leads to Price Recovery

Despite the initial plunge, oil prices rebound edged higher on Tuesday as investors engaged in short-covering. Brent crude futures rose 0.5% to $66.62 per barrel, while West Texas Intermediate (WTI) crude for May delivery increased by 1% to $63.73 per barrel. The more actively traded WTI June contract also gained 0.7% to $62.84 per barrel.

Ongoing Economic Concerns

Market participants remain cautious amid ongoing fears of a potential recession linked to U.S. tariff policies and concerns over Federal Reserve independence. These factors have increased worries about the U.S. economy and crude demand. Additionally, progress in U.S.-Iran nuclear deal talks has eased supply concerns, potentially impacting oil prices further.

As the situation evolves, investors will closely monitor geopolitical developments and central bank communications to assess the potential long-term impacts on the energy markets.

Source: BloomBurg

The post Oil Prices Rebound After Trump’s Criticism of Powell appeared first on FinanceBrokerage.

Chipotle to expand to Mexico amid Trump trade war with U.S. neighbor

Chipotle Mexican Grill will open its first location in Mexico early next year as the latest stage in its international expansion.

The company announced Monday that it has signed a development agreement with Alsea, which operates Latin American and European locations of Starbucks, Domino’s Pizza and Burger King, among other chains.

After the initial restaurant opens in 2026, Chipotle plans to explore “additional expansion markets in the region,” which could mean broader Latin American development.

The deal to expand in Mexico comes as President Donald Trump wages a trade war with the country, straining the relationship between the two neighbors. Avocados from Mexico were originally subject to a 25% tariff until he paused new duties on goods compliant with the United States-Mexico-Canada Agreement. While Chipotle has diversified its avocado sourcing in recent years, it still imports about half of its avocados from Mexico.

In recent years, Chipotle has been trying to expand internationally, after decades focusing almost entirely on its U.S. business. The company operates 58 locations in Canada, 20 in the United Kingdom, six in France and two in Germany. Chipotle also currently has three restaurants in Kuwait and two in the United Arab Emirates through a deal with Alshaya Group.

Chipotle is betting that Mexico’s familiarity with its ingredients and appreciation for fresh food will win over consumers, according to a statement from Nate Lawton, Chipotle’s chief business development officer.

But U.S. interpretations of Mexican food don’t always resonate in the market; Yum Brands’ Taco Bell has twice attempted to expand into Mexico, but both efforts failed quickly.

This post appeared first on NBC NEWS

RTX, GE Aerospace expect more than $1 billion tariff impact

RTX and GE Aerospace expect a more than $1 billion impact combined from President Donald Trump’s tariffs on imported goods and materials, the latest sign of higher prices for major U.S. manufacturers that rely on a global supply chain.

Neil Mitchill, chief financial officer of defense contractor and commercial aerospace supplier RTX, said on an earnings call Tuesday that the company will likely take a $850 million hit this year from tariffs, including the sweeping 10% levies that Trump imposed earlier this month alongside higher duties on countries like China and separate taxes on imported steel and aluminum.

That estimate doesn’t include RTX’s own tariff mitigation measures, Mitchill said.

GE Aerospace, which makes engines for popular Boeing and Airbus planes, kept its 2025 earnings outlook in place during its quarterly report Tuesday and said it would seek to save about $500 million by cutting costs and raising prices.

GE Aerospace CEO Larry Culp said on Tuesday’s analyst call that he recently met with Trump and discussed the U.S. aerospace sector’s trade surplus. GE has a joint venture with France’s Safran to make popular airplane engines.

The new tariffs are a shift for a global industry that has enjoyed mostly duty-free trade for decades.

“All we have suggested is the administration works through a myriad of issues, is they can consider the position of strength that the country enjoys as a result of this tariff-free regime,” Culp said.

The White House didn’t immediately comment.

Boeing, a major customer of both companies and the top U.S. exporter, is scheduled to report quarterly results before the market opens on Wednesday.

Airlines have recently announced cuts to U.S. domestic capacity plans this year because of softer demand, but executives have emphasized it is hard to predict the direction of the economy or future trade policies. United last week provided two earnings outlooks for 2025, one in the event of a recession, one assuming status quo.

“There is uncertainty,” Culp said Tuesday. “None of us, I think, know for sure how this plays out.”

This post appeared first on NBC NEWS