Markets Spiral as Trade War Escalates, RBA Considers Emergency Rate Cut

Spot pricing for Gold $AU5012

Spot pricing for Silver $AU50.10

Spot pricing for Platinum $AU1560

Markets are in meltdown this week after the U.S. and China reignited their trade war with a new round of tariffs that hit hard and fast. President Trump threw the first punch with a 10% blanket tariff on all imports and a 54% slap specifically targeting China. Beijing didn’t take long to hit back, rolling out a 34% tariff on U.S. goods and tightening the grip on rare earth exports. The back-and-forth has thrown fuel on an already shaky market, with investors now bracing for what could become a drawn-out economic slugfest.

Wall Street’s reaction was brutal. The S&P 500 has tumbled another 3.3%, the Nasdaq fell 4%, and the Dow dropped more than 1,000 points in a single session—moves we haven’t seen since the early COVID days. Closer to home, the ASX200 followed the lead, shedding $100 billion in value in just one trading day. Not to be outdone, the Aussie dollar slipped below 60 US cents, turning up the heat for importers and international travellers alike.

The Reserve Bank of Australia is now feeling the pressure. While the cash rate sits unchanged at 4.10%, talk of an emergency rate cut is starting to bubble. Retail heavyweight Gerry Harvey has come out swinging against the idea, saying an out-of-cycle cut could do more harm than good by spooking the market rather than calming it. But with sentiment diving and markets spiralling, it’s clear the RBA is weighing its options—emergency meeting or not.

And just to add one more layer of drama, Australia is inching closer to a federal election. Albanese and Dutton are gearing up for a campaign that’s looking more economically focused by the day. Labor will lean hard on wage growth and cost-of-living relief. The Coalition? Expect an energy-heavy pitch paired with more conservative spending measures. With markets rattled and household confidence under pressure, this election won’t just be about politics—it’ll be about who Aussies trust to steady the ship.

Gold and Silver have dropped alongside markets, especially Silver, as shown in today’s charts.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA