Gold surged in a violent short squeeze after the Federal Reserve left rates unchanged and Chair Powell delivered a hawkish press conference. Markets had been positioned for a pullback, but heavy short interest amplified upside momentum when prices moved against expectations. Elevated positioning made gold vulnerable to rapid covering, turning an anticipated bearish outcome into a rally.
Geopolitical risk added fuel. President Trump warned Iran that time is running out to reach a deal as U.S. forces massed in the Middle East, while Iran signaled potential retaliation. Energy markets reacted, with Brent crude climbing sharply from recent lows, reflecting concerns around supply routes and the Strait of Hormuz. Speculative activity has also intensified in base metals, supporting copper-related assets.
In equities, earnings drove sharp divergences. Meta shares jumped as results showed artificial intelligence is translating into advertising profits. Microsoft posted solid numbers, but shares slipped as investors fixated on marginally slower cloud growth. Tesla reported its first revenue decline, yet the stock narrative remains centered on robotaxis and humanoid robotics rather than autos.
Macro data were mixed, with jobless claims slightly above expectations, while attention now turns to the upcoming Producer Price Index release. Volatility across commodities and equities highlights how positioning and sentiment can overwhelm fundamentals in the short term. Key names to watch include $META, $MSFT, $TSLA, $FCX, and $CPER.
Responsible Investor 