The Gold Market’s Wild Ride: A Tale of Tariffs and Traders

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The past week has been a whirlwind for the gold market, with prices swinging dramatically based on shifting headlines from the White House. This event offers crucial insights for investors, particularly the key difference between speculative futures trading and long-term physical gold investing.

A Rollercoaster of News

The recent volatility began on Friday when a Trump administration ruling was made public, indicating that one-kilogram and 100-ounce gold bars would be subject to new tariffs. This news blindsided dealers and sent a shockwave through the market. Gold futures contracts on New York’s Comex exchange immediately soared to a record high of over $3,514 an ounce, as futures traders sought a “safe haven” amid rising economic uncertainty. The gold price had already risen around 30% this year due to concerns about U.S. economic policy.

However, the rally was short-lived. A White House official promised an executive order to clarify the “misinformation” about the tariffs, causing prices to fall. On Monday, August 11, December gold futures dropped as much as 2.4%, or $80.50, to settle around $3,410.80 per ounce. This marked the biggest one-day percentage decline since May 12, according to Dow Jones Market Data. The announcement that gold would not be subject to tariffs was made by President Trump shortly after gold prices settled for the day.

The price action wasn’t just limited to the U.S. market. Spot gold also dropped, pushing the premium between New York Comex futures and London bullion back to a normalized level. This period of confusion highlighted how sensitive the global gold market is to official policy and the rapid reactions of speculators.

What This Means for Your Portfolio: Futures vs. Physical Gold

The dramatic swings you’ve seen in the headlines were primarily a function of the futures market. It’s crucial for investors to understand the difference between this and other forms of gold investment.

  • Gold Futures: These are financial contracts used by professional traders and speculators to bet on the short-term direction of gold’s price. They are a high-risk, high-leverage tool and are generally not suitable for long-term investors or retirees focused on wealth preservation.
  • Physical Gold: This refers to buying and holding tangible gold, such as coins or bars, as a long-term asset. This form of gold is less sensitive to the daily speculation that moves the futures market. Physical gold is often used as a hedge against inflation and a reliable store of value during times of economic uncertainty.

The purpose of your gold investment should always come before performance. Whether you’re buying it for protection against a financial crisis, as an inflation hedge, or for market exposure, the type of gold you hold and your strategy should be aligned with your goals.

How Agemy Financial Strategies Can Help

At Agemy Financial Strategies, we believe every investment decision should start with a clear purpose. Gold can play a valuable role in a diversified portfolio, but only if it’s aligned with your broader retirement strategy.

Our fiduciary advisors can help you:

  • Determine whether gold fits into your long-term plan.
  • Select the right type of gold exposure for your goals: physical, ETF, or alternative vehicles.
  • Build a balanced, income-focused plan that supports your lifestyle in retirement.

In times of market uncertainty, we’re here to help you make confident, informed decisions.

Contact us today for a complimentary Retirement Readiness Review to discuss how gold and other diversification strategies can strengthen your financial plan.

Frequently Asked Questions About Gold Investing

  1. Is gold a good investment for retirement? Gold can be a useful part of a diversified retirement portfolio, especially as a hedge against inflation or currency risk. However, it generally doesn’t generate income and should be balanced with income-producing assets.

  2. What’s the safest way to own gold? For wealth preservation, physical gold in the form of recognizable coins (like American Gold Eagles) stored in a secure, accessible location is best. If your goal is market exposure rather than physical possession, consider allocated gold ETFs.

  3. What’s the difference between allocated and unallocated gold ETFs? Allocated gold ETFs hold specific gold bars in your name, giving you direct ownership. Unallocated ETFs represent a claim on gold but aren’t tied to specific bars, meaning in a crisis, you may not receive physical gold.

  4. Are gold mining stocks a good alternative to physical gold? Gold miners can offer leverage to gold price movements and potential dividends, but they are far more volatile and can underperform badly in down cycles. They work best for short-term, cycle-based strategies, not long-term wealth preservation.

  5. How much gold should I have in my portfolio? This depends on your goals and risk tolerance, but for most retirement-focused investors, gold allocations range between 5–10% of the portfolio. Too much gold can limit your income potential and overall diversification.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.

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Is Your Retirement Strategy Built for an ‘Anything Can Happen’ Financial Landscape?

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Ongoing reports and headlines highlight a mixed economic outlook, with some sectors showing resilience while others face headwinds due to tariffs and uncertainty.

The recent contraction of the U.S. economy by 0.3% in the first quarter of 2025 may appear modest on paper, but for individuals approaching or in retirement, it can serve as a key signal. Even small shifts in economic indicators can have ripple effects across investment markets, interest rates, consumer confidence, and ultimately, your retirement income security.

At Agemy Financial Strategies, we understand that affluent retirees and pre-retirees can’t afford to make reactive decisions based on short-term headlines. Instead, it’s about strategic foresight, proper risk management, and intentional wealth preservation. Here’s what you need to know.

A Closer Look at the Q1 Contraction

The 0.3% dip in GDP followed a period of steady growth, raising concerns about the broader economic trend. Here’s what contributed to the slowdown:

While these may seem like economic metrics for policymakers, they directly relate to retirement strategies, especially for those with significant assets at stake.

Key Areas Where Economic Slowdowns Impact Your Retirement Plan

1. Investment Strategy and Portfolio Diversification

Volatility and contractions in the economy often hit equity markets first—and hardest. For retirees, the priority isn’t chasing returns, but protecting wealth while maintaining sufficient growth.

  • Evaluate your exposure to equities, bonds, and alternative assets.
  • Consider dividend-generating or inflation-hedged investments.
  • Avoid the “sequence of returns” risk by maintaining enough cash or liquid assets to help avoid drawing down principal during market dips.

Agemy Financial Strategies can help review your current allocation and stress test your portfolio against different market scenarios.

2. Interest Rates, Inflation, and Income Streams

In a cooling economy, the Fed may shift to lower interest rates to encourage spending. While this could help borrowing costs, it also has implications for:

  • Fixed-income yields (which may decline)
  • Inflation pressures, especially if supply-chain constraints persist
  • Real purchasing power, particularly for retirees on fixed incomes

It’s essential to align your income strategy with both current interest rates and inflation forecasts. Agemy helps clients integrate TIPS, laddered bonds, and diversified income vehicles to protect purchasing power.

3. Tax Planning in an Evolving Landscape

Lower GDP often prompts fiscal policy adjustments, including potential tax reforms. As your retirement income sources vary—from IRAs to pensions to capital gains—it’s important to assess how changing tax rates might impact:

Our fiduciary advisors at Agemy are experienced in proactive tax strategy to help ensure your income remains as tax-efficient as possible, no matter the economic cycle.

4. Estate Planning Amid Market Volatility

A drop in asset values might affect the total size of your estate. If this impacts your legacy goals, it may be time to:

Volatility can create estate planning opportunities, especially if you anticipate a market rebound or plan to transfer assets to heirs soon.

5. Rising Healthcare Costs and Longevity Risk

In times of economic pressure, federal healthcare funding could face cuts. Meanwhile, costs for long-term care and medical expenses continue to rise, regardless of the economic climate.

A sound retirement plan must account for:

  • Long-term care insurance
  • Health Savings Accounts (HSAs)
  • Medicare and supplemental coverage strategies

Planning for healthcare costs early can help prevent sudden financial strain later.

How to Navigate Economic Uncertainty with Confidence

1. Conduct Regular Portfolio Checkups

Just like your annual physical, your portfolio needs a checkup too. Reviewing it during times of uncertainty helps ensure you’re not overexposed to risk and that your investments are working in your favor.

2. Reaffirm Your Financial Goals

Are your current retirement strategies still aligned with your goals? As economic conditions shift, your financial objectives might need to be adjusted. Agemy’s advisors can help you identify blind spots and fine-tune your plan.

3. Maintain a Long-Term Perspective

Economic contractions, no matter how uncomfortable, are part of a normal business cycle. Staying the course and focusing on your long-term goals helps avoid impulsive decisions that can hurt your retirement outlook.

4. Work with a Trusted Fiduciary Partner

At Agemy Financial Strategies, our fiduciary duty is to put your best interests first. We offer personalized wealth planning that evolves with you and the broader market landscape.

Final Thoughts: Your Retirement Deserves a Resilient Strategy

The 0.3% GDP contraction in Q1 2025 is a reminder that even mild economic changes can have real implications for those nearing retirement. The good news? You don’t have to navigate this alone.

With over 30 years of experience guiding clients through all market conditions, Agemy Financial Strategies helps affluent families, professionals, and retirees adapt, preserve, and grow their wealth in the face of change.

How Agemy Financial Strategies Can Help

In uncertain economic times, your retirement strategy needs more than guesswork—it requires deep knowledge, personalization, and foresight. That’s where Agemy Financial Strategies comes in.

With over three decades of experience guiding affluent individuals and families, our team provides comprehensive, fiduciary-based financial planning focused on long-term security and short-term flexibility.

Here’s how we help you stay on course—even when the economy wavers:

  • Customized Retirement Income Planning: We analyze all your income streams—Social Security, pensions, investments—and structure a reliable, tax-efficient plan to help cover your expenses for life.
  • Strategic Investment Management: Our advisors actively monitor market conditions and adjust your investment mix to help protect against downside risk while capturing growth opportunities when available.
  • Proactive Tax Optimization: We build tax strategies into every part of your plan, including Roth conversions, tax-loss harvesting, and distribution planning to help you keep more of what you’ve earned.
  • Healthcare & Long-Term Care Strategy: Rising healthcare costs are one of retirement’s biggest threats. We help you prepare with smart coverage options, LTC planning, and health savings strategies.
  • Legacy and Estate Planning Coordination: Your wealth should support not only your lifestyle but also your legacy. We collaborate with estate attorneys and CPAs to help align your goals with your estate structure.
  • Stress Testing for Peace of Mind: We run your plan through multiple economic and market scenarios to help ensure your strategy holds up, even if the economy doesn’t.

A Plan That Evolves as Life and the Market Do

At Agemy Financial Strategies, we don’t believe in one-size-fits-all retirement planning. Instead, we take time to understand your lifestyle, your priorities, and your legacy goals, building a roadmap that adapts with you and the world around you.

Ready to strengthen your retirement plan with a team that puts your best interests first?

Schedule a no-obligation consultation today, and let’s build a future that’s as resilient as it is rewarding.

Frequently Asked Questions

Q: What if my retirement portfolio lost value due to the Q1 slowdown?
A: Don’t panic. Reassess your asset allocation and consult with a fiduciary advisor. Market dips can be an opportunity for rebalancing and tax optimization.

Q: Should I consider a Roth conversion now?
A: If you anticipate higher taxes later or if your portfolio temporarily dips, a Roth conversion may be advantageous. Always consult with your advisor before moving forward.

Q: How can I help protect against inflation in retirement?
A: Diversify into inflation-resistant assets like TIPS or real estate. Consider dynamic withdrawal strategies that adjust to inflation.

Q: What healthcare costs should I plan for in retirement?
A: Medicare, supplemental insurance, and long-term care expenses. Begin planning early to help ensure you can cover these costs without compromising your lifestyle.

Q: Is now a good time to gift assets to my heirs?
A: If asset values are temporarily down, it could be an ideal time to transfer wealth while minimizing tax implications. Discuss this with your financial advisor.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.

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Trade & Tariffs: How Policy Changes Could Impact Your Portfolio

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Trade policies and tariffs are pivotal in shaping financial markets in an increasingly interconnected global economy. Whether it’s new tariffs on imported goods, renegotiated trade agreements, or shifting geopolitical tensions, policy changes can have far-reaching consequences for investors. 

After a volatile week of market swings, the S&P 500 rose 9.52%, the Dow Jones Industrial Average jumped 7.87%, and the Nasdaq Composite soared 12.16%. The bounce came from President Trump’s announcement of a 90-day tariff reduction for over 75 trade partners that had not retaliated against his sweeping trade actions. Still, the relief proved short-lived.

A baseline 10% tariff remains in place for most trading partners, while key nations—particularly China—are seeing even steeper hikes. The dollar dropped 1.5% on the yen to 145.5 and 2% on the franc to 0.8402. Gold climbed toward $3,120 per ounce on Thursday, approaching record levels and building on a more than 3% gain from the previous session, driven by safe-haven demand amid rising US-China tensions.

What’s Changing?

As of April 10,  all U.S. imports will be subject to a new 10% tariff. Additionally, the White House is rolling out higher tariffs on specific nations it views as trade adversaries:

  • Japan: A 24% reciprocal tariff on Japanese goods has drawn sharp criticism from Tokyo. Foreign Minister Yoshimasa Hayashi warned the U.S. measures could harm bilateral trade and the global economy. Japan and the U.S. are set to begin ministerial talks, including addressing a separate 25% tariff on car imports.
  • European Union: New tariffs on 20.9 billion euros ($23 billion) of U.S. goods will be put on hold for 90 days to match President Trump’s move.
  • China: An additional 34% tariff, on top of existing levies—including a prior 20% fentanyl-related tariff—bringing the total effective tariff rate on Chinese goods to 145%.
  • Canada and Mexico: U.S. neighbors are exempt from the additional 10% tariff under President Trump’s revised “reciprocal tariff” policy. The current U.S. tariff structure on Canadian and Mexican imports of 25% duty on goods is not covered by the USMCA trade agreement and will remain unchanged.

As global leaders weigh retaliatory actions or push for diplomatic resolutions, understanding the investment implications of these sweeping changes is more important than ever for high-net-worth individuals and those nearing retirement.

The Role of Tariffs in the Global Economy

Tariffs are taxes on imported goods designed to make foreign products less competitive than domestically produced alternatives. They play a significant role in shaping global trade policies and economic strategies. With the Trump Administration’s second term introducing new trade measures, investors should consider how these changes may impact different sectors. Governments impose tariffs for several reasons, including the following:

  • Protecting domestic industries from foreign competition.
  • Generating government revenue.
  • Counteracting unfair trade practices such as dumping or intellectual property theft.
  • Gaining political leverage in international negotiations.

While tariffs can offer short-term economic benefits, they often trigger retaliatory measures from trading partners, potentially disrupting global supply chains and increasing market volatility.

Given these uncertainties, portfolio diversification remains a key strategy for helping manage risk. Now may be an opportune time to assess whether your portfolio aligns with your long-term financial goals. Some investors incorporate high-quality short-term bonds, higher-yielding “plus” sector bonds, and alternative investments into their risk management strategy.

However, investment strategies should be tailored to individual financial needs. Consulting a fiduciary can help ensure financial decisions align with long-term objectives.

Understanding New Developments in Trade Policies 

Trade policies constantly evolve, with administrative shifts, economic conditions, and international relations influencing decisions. Key developments that could potentially affect investment portfolios include the following:

1. U.S. & China Trade Relations

The trade relationship between the U.S. and China remains a focal point of global economic policy, with recent developments escalating tensions. President Trump has significantly escalated trade tensions with China by increasing tariffs on Chinese imports to an effective rate of 145%. 

Here are the key takeaways:

  • China’s Retaliation: In response, China has imposed retaliatory tariffs of 84% on U.S. goods, further intensifying the trade conflict.
  • Market Impact: These developments have led to heightened volatility in global markets, with significant fluctuations in major stock indices.
  • Diplomatic Efforts: Both nations are negotiating to address the escalating trade tensions, though challenges persist in reaching a resolution.

The situation remains dynamic, with ongoing developments that could have significant economic and geopolitical implications. Investors should closely monitor potential shifts in trade policy and assess risk exposure in sectors affected by these tariffs and regulatory changes. A fiduciary can provide guidance on adjusting investment strategies in response to evolving trade policies, helping investors mitigate risk and identify potential opportunities.

2. European Union Trade Policies

The EU has introduced measures to counteract U.S. tariffs, particularly on imports of steel, aluminum, and technology. As of April 10, 2025, the European Union (EU) is actively addressing recent U.S. tariff actions and adjusting its trade policies accordingly. Here’s how:

  • EU Response to U.S. Tariffs: Initial U.S. Tariffs: President Donald Trump imposed a 20% tariff on EU goods as part of broader measures targeting multiple trading partners.
  • EU’s Retaliatory Measures: In response, the EU approved retaliatory tariffs on over $23 billion worth of U.S. goods, including products like soybeans, motorcycles, meat, textiles, tobacco, and ice cream. These measures were set to be implemented gradually.
  • 90-Day Pause: Subsequently, President Trump announced a 90-day pause on the newly imposed tariffs to allow for negotiations. Aligning with this, the EU decided to suspend its planned retaliatory tariffs for the same duration, aiming to facilitate dialogue and help seek a negotiated resolution.

Investors with exposure to European equities or multinational corporations should monitor these changes closely. Working with a fiduciary can help them navigate the potential risks and opportunities these policy shifts present and help ensure their investment strategies remain aligned with long-term financial goals.

How Trade & Tariff Changes Can Impact Investment Portfolios

Trade policy changes can introduce risk and opportunity across asset classes for HNWIs and retirement-focused investors. Understanding the potential consequences can be essential to help with effective portfolio management.

1. Market Volatility & Equity Performance

Tariff announcements can trigger market fluctuations. For instance, when tariffs on Chinese goods were first announced in 2018, the S&P 500 experienced short-term volatility as investors reacted to potential profit margin squeezes. Here are some other considerations:

  • Sector-specific impacts: Due to their supply chain dependencies, industries like technology, manufacturing, agriculture, and consumer goods often react more sharply to trade policy changes.
  • International investments: Companies with significant foreign operations may see revenue declines or gains based on shifting trade agreements.

2. Commodity Prices & Inflation Risks

Tariffs on raw materials like steel, aluminum, and agricultural products can increase business costs, reduce profit margins, and affect stock valuations. Companies may raise prices to offset higher production expenses, leading to higher consumer costs, shifts in spending habits, and potential economic slowdowns.

These inflationary pressures can also affect interest rates and bond markets, with broader financial implications:

  • Interest rates and inflation: If tariffs drive inflation higher, central banks may respond by adjusting interest rates, which can impact bond performance and fixed-income investments.
  • Corporate bonds: Companies facing higher costs due to tariffs may experience credit rating changes, influencing corporate bond yields and risk levels.

By monitoring these factors, investors can better understand how trade policies may impact various asset classes.

3. Currency Fluctuations & Emerging Markets

  • Strengthening or weakening of the U.S. dollar: Trade tensions can drive capital flows into or out of the U.S. dollar, impacting foreign exchange rates and international investments.
  • Emerging market volatility: Countries reliant on exports, such as China, Brazil, or India, may experience economic slowdowns or growth spurts depending on U.S. trade policies.

Strategies to Navigate Trade Policy Uncertainty 

While predicting every trade policy shift is impossible, investors can take proactive steps to help mitigate risk and seize potential opportunities. At Agemy Financial Strategies, we support investors in navigating economic uncertainties by creating personalized financial plans tailored to their unique risk tolerance and long-term goals. Our fiduciary team can help with the following:

1. Diversification Across Sectors & Geographies

A well-diversified portfolio can help mitigate the risks of shifting trade policies by reducing reliance on any single sector or region. Allocating assets across various industries—technology, healthcare, and real estate—can help balance exposure to trade disruptions. Our team can help assess your portfolio’s risk exposure, identify opportunities for diversification, and adjust asset allocation to align with long-term financial goals in an evolving global market.

2. Monitoring Tariff-Exposed Industries

Investors should closely monitor how tariffs impact different sectors. Companies reliant on global supply chains may face challenges, while domestic suppliers or businesses in alternative markets could see opportunities. Understanding these dynamics is key to making informed investment decisions. The fiduciaries at Agemy Financial Strategies can provide guidance on navigating these shifts, helping align your investment strategy with changing market conditions.

3. Evaluating Fixed Income Positions

Rising interest rates driven by tariff-induced inflation can significantly impact bond holdings. Investors should consider adjusting bond duration, credit quality, and diversification strategies to help hedge against interest rate fluctuations. Agemy Financial Strategies can provide insights on balancing risk and return, helping you align with your long-term financial objectives.

4. Staying Informed With Ongoing Market Insights

Navigating the complexities of global trade requires staying informed about evolving economic policies and market trends. Working with a financial professional can help provide valuable insights into how trade developments may impact investment strategies. Key factors shaping the investment landscape include:

  • Geopolitical Tensions: U.S.-China relations, European trade policies, and global sanctions may continue influencing markets.
  • Supply Chain Reshoring: Companies are increasingly shifting production closer to home, which could present long-term investment opportunities in domestic manufacturing.
  • Emerging Tech & Trade: Sectors like artificial intelligence (AI), semiconductors, and green energy will be critical areas influenced by international trade policies.

For over 35 years, Agemy Financial Strategies has been committed to educating clients and providing insights on how evolving policies may impact their financial future. Our team helps investors stay ahead of market changes and adapt their portfolios to navigate shifting trade landscapes with confidence.

Final Thoughts

Trade policies and tariffs are ever-evolving factors that influence global markets, business operations, and investment strategies. While they can introduce uncertainty, they also present opportunities for those who proactively adjust their portfolios and stay informed.

Strategic diversification and a clear understanding of sector-specific impacts are key to navigating these changes for high-net-worth individuals and retirees. At Agemy Financial Strategies, we provide personalized financial education and insights to help investors make informed decisions amid shifting economic policies.

Ready to take control of your financial future? Contact us today for a complimentary consultation and discover how our team can help you manage risk and seize opportunities in an evolving global economy.

Trade & Tariffs FAQs

How do tariffs impact stock market performance?

Tariffs can introduce market volatility as companies adjust to higher costs and shifting trade dynamics. Certain sectors, such as technology and manufacturing, may experience more significant fluctuations based on tariff announcements and global trade relations.

Should I adjust my portfolio in response to new tariffs?

While it depends on your investment strategy and risk tolerance, diversification across sectors and regions can help mitigate the impact of trade policy changes. Consulting with a fiduciary advisor at Agemy Financial Strategies can help provide insight.

What industries are most affected by trade policies?

Industries such as technology, manufacturing, agriculture, and consumer goods are often highly sensitive to tariff adjustments. Additionally, companies reliant on global supply chains may experience pricing and operational challenges.

How can I stay informed about trade policy changes?

Monitoring economic reports, government announcements, and market analyses can help investors stay updated. Financial professionals at Agemy Financial Strategies can help you by providing ongoing insights and strategic guidance.

Disclaimer: This content is for educational purposes only and should not be considered financial or investment advice. Please consult with the fiduciary advisors at Agemy Financial Strategies before making any investment decisions.

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