Markets are moving with a defensive tilt as gold’s (GLD) rally continues to dominate the macro narrative. The metal climbed 2.3% to $5,540 an ounce, extending January’s gain to about 30%, while silver hit an all-time high and Brent crude rose 0.8% to its strongest level since September. The move came as geopolitical risk intensified after Donald Trump warned Iran to strike a nuclear deal with the US or face potential military action, alongside growing expectations that US monetary policy could turn more accommodative later this year. The dollar weakened, with the Bloomberg Dollar Spot Index down 0.2%, while Treasuries were little changed after the Federal Reserve held rates steady.
Equity markets, by contrast, showed little conviction. Futures tied to the S&P 500 Index (SPY) edged lower as mixed megacap earnings failed to re-ignite technology stocks, despite a profit beat from Samsung Electronics (SSNLF). Tesla 
TSLA and Meta Platforms 
META rose in aftermarket trading, while Microsoft 
MSFT declined following its earnings report, reinforcing a selective and uneven earnings backdrop. In Asia, MSCI’s regional benchmark slipped 0.1%, while Indonesian equities extended losses into a second session, triggering a temporary trading halt as investors weighed downgrade risks and transparency concerns highlighted by MSCI Inc.
Policy uncertainty remains a central focus. The Federal Open Market Committee voted 10-2 to keep the federal funds rate in a 3.5%3.75% range, with two governors favoring a quarter-point cut, while the Fed upgraded its assessment of the labor market and said economic growth remains solid. Investors are increasingly looking beyond Chair Jerome Powell, with speculation that a successor could be more dovish possibly adding support to gold demand, particularly after Treasury Secretary Scott Bessent said a decision on the next Fed chair could come in the next week or so. Even so, strategists caution that the sharp rallies in gold and silver could raise concerns about sustainability, leaving investors selective as geopolitical tensions, dollar volatility, and policy risks remain unresolved.