Global financial markets exhibited mixed performances on March 19, 2025, influenced by geopolitical tensions and investor anticipation of central bank policy decisions.

Stock Markets:

• Asia: Asian stock markets displayed muted activity. The Bank of Japan maintained its interest rate at 0.5%, leading to a slight weakening of the yen. Investors are closely monitoring Governor Kazuo Ueda's upcoming press conference and the U.S. Federal Reserve's policy announcement.

   

• Europe: European markets experienced varied movements. France's CAC 40 index saw a slight increase, while Germany's DAX and Britain's FTSE 100 recorded declines.

   

• United States: U.S. stock futures indicated modest gains ahead of the Federal Reserve's interest rate decision. Investors are particularly attentive to the Fed's forecasts concerning interest rates, inflation, and the overall economic outlook.

   

Gold Prices:

Gold prices surged to record highs, driven by heightened safe-haven demand amid escalating geopolitical tensions and economic uncertainties. Spot gold reached an all-time peak of $3,045.24 per ounce, marking the 15th record high this year.

In India, the price of 10 grams of 24-carat gold was ₹90,183 in Delhi.

Geopolitical Factors:

The escalation of conflicts, such as Israeli airstrikes in Gaza resulting in over 400 casualties, has contributed to market volatility and bolstered the appeal of gold as a safe-haven asset.

Central Bank Policies:

Investors are keenly awaiting the outcomes of central bank meetings. The Federal Reserve is expected to maintain interest rates within the 4.25%-4.50% range, with markets anticipating potential rate cuts in the coming months.

Overall, the confluence of geopolitical tensions and central bank policy expectations has led to divergent performances in global stock markets and propelled gold prices to unprecedented levels.