Global trade is more 'buffered' against Trump's tariffs this time around, says Strategist

Market Reactions to Tariffs - The market is adapting to recent tariff developments, with a perception that the trade war may be easing, as evidenced by a quicker acceptance of news related to tariffs [3][5] - There is a historical context where manufacturers previously engaged in inventory accumulation, suggesting a potential repeat of such behavior in response to current tariff situations [2] Economic Environment and Supply Chain - The global economic environment is showing resilience, with supply chains increasingly moving away from the US, indicating a stronger linkage outside the US compared to previous years [5] - The world is perceived to be more buffered against US tariff actions now than it was four to five years ago, suggesting improved adaptability in the global market [6] Gold Market Insights - The price of gold has seen significant fluctuations, with a new target set at $5,500, reflecting ongoing geopolitical volatility and central bank demand for gold ETFs [6][8] - The recent decline in gold prices was attributed to a temporary overshoot beyond fundamental values, but the long-term outlook remains optimistic for gold as a portfolio hedge [7][8] Federal Reserve Rate Cuts - Despite recent economic slowdowns, the expectation remains for only one Federal Reserve rate cut this year, indicating a cautious approach to monetary policy amidst tariff uncertainties [10][12] - The US GDP is slowing, but this does not suggest an imminent recession, with market expectations for rate cuts being moderated [11][12]