The Sail Through Short-Term Volatility - Gold Rallies, Growth Indicators Remain Positive

This week, the United States experienced an intense combination of economic announcements, market turbulence and key political moves that will shape the direction of the national agenda in the coming months.

On the economic front, leading indicators offered encouraging signs. Private sector activity indices showed a moderate acceleration: the manufacturing PMI rose to 52.3 from 50.2 in April, the services PMI also reached 52.3 (up from 50.8) and the composite index came in at 52.1 from 50.6. These data suggest a moderate expansion of the economy in May, providing support for the government's view of sustained growth. Treasury Secretary Scott Bessent said that the economic dynamism could offset the fiscal impacts of the new budget policies.

However, the optimism was overshadowed by trade tensions. President Donald Trump threatened to impose 50% tariffs on all products from the European Union starting June 1, arguing that negotiations with the bloc are not progressing as quickly as desired. He also warned that Apple Inc. will face a tariff of at least 25% if it does not move production of iPhones to the country. These statements, issued on social networks, generated a sharp fall in the financial markets, reflecting the fear of a new protectionist escalation. Despite the threats, this week marked the first formal exchange of negotiating documents between the US and the EU, addressing issues such as tariffs, digital trade and strategic investments in sectors such as energy and artificial intelligence.

READ MORE