Is Now the Right Time to Buy the Dip in Gold?

Market Meltdown: The Aftermath of Trump’s Tariff Policy

The most highly anticipated week of the year and quite possibly the most pivotal moment in economic history took place last Wednesday with President Donald Trump sending shockwaves through the global economy after announcing reciprocal tariffs on more than 150 countries around the world.

In a bold and historic speech, President Donald Trump declared April 2, 2025 as “Liberation Day”, while many of the world’s leading economists labelled it as “Demolition Day”.

President Trump announced new import tariffs covering more than 150 countries. The percentages ranged from 10% for quite a few countries including the UK, up to 49% for Cambodia. China received an additional 34% tariff rate above existing ones, while the EU was hit with a 20% rate.

President Trump touted Wednesday as a landmark moment in U.S history, saying his onslaught of tariffs against much of the world would “Make America Wealthy Again.” Instead, the announcement of the steepest levies seen in over a century sparked one of the biggest stock market sell-offs ever – wiping out a total of $6.6 trillion off the global equity markets in two days. That figure brings the total market capitalization lost since Trump’s Inauguration in January to over $11.1 trillion, so far this year.

But, here’s where things really start to get interesting.

Global trading volumes hit an all-time record $26.4 billion on Friday as savvy traders rushed to capitalize on the lucrative opportunity to “short everything” and buy back at massive discount.

Wealth creation opportunities of this magnitude are truly rare and do not come around very often. According to data compiled by GSC Commodity Intelligence – “Stock market crashes of the scale seen in the aftermath of Trump’s Liberation Day have only happened four times in history”.

The first three occasions were the 1987 Stock Market Crash, the 2008 Global Financial Crisis and more recently the Pandemic in 2020. On each and every one of these occasions – the Federal Reserve immediately swooped in and slashed interest rates.

The big question now is:

Will The Fed Be Forced To Cut Interest Rates Due To Trump’s Tariffs?

Only time will tell, however one thing we do know for certain is that President Trump has repeatedly calling for the Federal Reserve to cut interest rates immediately.

Once again on Friday, Trump openly urged Fed Chair Jerome Powell to act swiftly. “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly.”

To quote analysts at GSC Commodity Intelligence – “regardless of whatever scenario plays out from here, whether that’s a Recession, Stagflation or even an Emergency Rate Cut by the Federal Reserve – all the above present an extremely bullish backdrop for Precious Metal prices”. That’s welcoming news for the bulls, but painful for anyone sitting on the sidelines, who must now decide how much FOMO they can handle.

Whichever way you look at it, one thing is clear. The case for precious metals in a well-diversified portfolio has never been more obvious than it is right now. Any substantial pullbacks should be viewed as buying opportunities because prices won’t stay low for long!