Gold prices continue to drift lower after breaking the 50-day moving average. Traditionally a safe haven in times of uncertainty, the “fog of war” now keeps gold in focus. I plan to maintain my sizable gold position, supported by strong projected sales and earnings from my gold stocks. Other commodities are also soft, reflecting fears of slower global growth.
Geopolitical tensions remain high. On Wednesday, President Trump warned that if Iran continues targeting Gulf energy infrastructure, the U.S. would strike the South Pars Gas Field with unprecedented force. Until hostilities subside and shipping resumes through the Strait of Hormuz, energy-driven inflation is likely to persist.
The March Producer Price Index (PPI) report added to concerns. Wholesale food and energy prices are expected to rise sharply due to the Iran conflict and the Strait of Hormuz closure. In February, the PPI rose 0.7% month-on-month and 3.4% year-on-year, with wholesale food up 2.4% and energy 2.3%. Prices for final demand goods rose 1.1%, and wholesale service costs increased 0.5%.
The FOMC highlighted labor market weakness, noting that job gains remain low. Fed Chairman Jerome Powell emphasized that the private sector is not creating sufficient jobs. The “dot plot” signals one expected interest rate cut, though some FOMC members anticipate more. The statement avoided calling war-related inflation transitory, instead noting that the Middle East’s impact on the U.S. economy is “uncertain,” while economic activity continues at a solid pace and inflation remains elevated.
The housing market showed weakness as well. January new home sales fell 17.6% to an annual pace of 587,000—the slowest since 2022—likely influenced by severe winter weather. Sales plunged nearly 45% in the Northeast and about 34% in the Midwest. A sluggish housing market is expected to weigh on GDP growth.
On the tech side, data center demand remains strong. Micron Technology (MU) reported a 196.3% year-on-year revenue jump to $23.86 billion in its latest quarter, while earnings soared 682.1% to $12.20 per share from $1.20 a year ago. The company beat revenue expectations by 21.7% and earnings by 38.6%, underscoring robust demand for fast memory chips.
Sources: Louis Navellier
THE ETERNAL SOVEREIGN 
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