Gold and Silver Industry & Investing News
Today’s gold and silver market news, curated from the best of GoldSilver's team and around the web. Everything precious metals investors need to know including updates on big price swings, macro analysis, and breaking stories. Check back often or subscribe to get the highlights in your inbox. Monitor live spot prices on our charts page.
Subscribe
TOP NEWSCould Redditors Trigger the Silver Squeeze 2.0?
Could a new silver squeeze be under way, thanks to the retail traders on Reddit aiming to expose the alleged silver manipulation
What Is Driving Gold & Silver Prices?
Join Mike Maloney in this enlightening discussion on “What Is Driving Gold & Silver Prices?”
READ MORESilver Surges Past Gold, Ratio Suggests Further Gains to Come
Silver has taken the spotlight, soaring to $30 per ounce and outpacing gold's gains this year. While gold's record-setting rally grabbed headlines, silver's surge, driven by strong financial and industrial demand, has made it one of the top-performing commodities of 2024. The gold-to-silver ratio, which currently stands at about 80 ounces of silver to one ounce of gold, indicates that silver remains relatively undervalued compared to its precious metal counterpart. With industrial applications such as clean-energy technologies fueling demand, silver is expected to continue its upward trajectory, potentially tightening supplies even further and cementing its position as the more dynamic metal in the market.
READ MOREBREAKING: Silver Trades Above $30/oz First Time In Over a Decade
Silver prices have reached $30 per ounce, marking a significant milestone driven by strong industrial demand and favorable market conditions. This surge reflects investor confidence in the metal's future, bolstered by increasing applications in technology, renewable energy, and electronics. The rally is part of a broader trend in precious metals, silver is now up 5.6% this week.
READ MOREChina Unleashes Bold Measures to Rescue Property Market Crisis
In an aggressive move to revive its struggling property market, Beijing has unveiled a comprehensive rescue package, including the removal of mortgage rate floors and lowering down payments. The People's Bank of China will inject $42 billion to help government-backed firms purchase unsold homes, converting them into affordable housing. Despite this, analysts warn that the funds may fall short of what’s needed to fully address the housing glut. The market responded positively, with developer shares surging, but experts caution that a lasting recovery will require careful execution and broader financial support.
READ MOREInvestors Reap Rewards Across Markets as Dow Hits 40,000
Amid an ideal investing environment, the Dow Jones Industrial Average has surged past 40,000 for the first time, driven by resilient corporate profits, low unemployment, and easing inflation. Investors are striking gold with gains in diverse markets, including tech stocks, cryptocurrencies, and precious metals. Despite some concerns about government debt and market timing, optimism remains high, with strategists predicting continued growth fueled by advancements in AI and domestic investment. Even risk-averse investors find attractive options in high-yield bonds and CDs, adding to the widespread market exuberance.
READ MORE"AI-Fueled Equity Bubble" - Big Tech to Ignite Next Equity Market Surge
Amid improving economic indicators and anticipation of fewer Federal Reserve rate cuts, big tech companies, particularly those focused on AI, are expected to drive the next market surge. Nvidia, set to release earnings next week, is among the leaders in this trend. Capital Economics predicts that AI-driven optimism will propel tech stocks higher, despite recent cautious investor sentiment. The resilience of cyclical sectors and robust economic outlook further support the potential for an AI-fueled equity bubble, with big tech poised to regain and extend its dominance in the market.
READ MOREChina’s Gold Market Thrives in April with Record ETF Inflows
In April, China's gold market saw strong investment demand, with gold withdrawals from the Shanghai Gold Exchange rising to 131 tons. The Shanghai Gold Benchmark and LBMA Gold Price both increased, reflecting this momentum. Chinese gold ETFs experienced their largest-ever monthly inflow, and the People's Bank of China announced its 18th consecutive month of gold purchases, bringing total holdings to 2,264 tons, the highest ever.
READ MOREChina Pledges Response to Biden Administration’s Expanded Tariffs
China condemned the Biden administration's decision to increase tariffs on various Chinese imports and vowed to take unspecified retaliatory actions. The new tariffs, ranging from 25% to 100% on items like semiconductors and electric vehicles, follow a review of tariffs initially imposed by former President Trump.
READ MORECopper Short Squeeze Rocks Global Markets as US Prices Soar
A massive short squeeze in New York has sent copper prices skyrocketing, with the Comex premium over the London Metal Exchange price surging to over $1,200 per ton. This unprecedented price spread has wrong-footed major traders and hedge funds, sparking a frantic scramble for copper to fulfill expiring contracts. Despite no overall physical shortage, the squeeze highlights tight US copper supplies, exacerbated by solid demand and shipping issues. Analysts expect further market volatility as traders rush to move copper to the US, with some relief potentially coming in early June.
READ MOREPrecious Metals "Red Hot" Rally Set to Continue, Say Strategists
Gold, silver, and platinum prices have surged following softer-than-expected U.S. inflation data, which raises the prospect of Federal Reserve rate cuts. Gold reached a three-week high, silver hit its highest level in over three years, and platinum climbed to a near one-year peak. Saxo Bank strategists predict gold could soon test $2,400, silver may reach $30, and platinum has the potential to hit $1,130 per ounce. Despite some cautious forecasts, analysts from ROTH Capital Partners see gold potentially reaching $2,600 and silver climbing as high as $37.
READ MOREUS Dollar Dominates Amid Global Economic Shifts
The US dollar continues to flex its muscles in 2024, driven by strong economic data and fewer expected Fed rate cuts. Despite global growth improvements and rising oil prices, the dollar remains resilient, while the euro, pound, and yen face mixed prospects. Key factors include potential ECB rate cuts, BoE policy shifts, and the Fed's significant influence on USD/JPY dynamics.
READ MOREElite Hedge Fund's GameStop Bet Nets Millions Amid Meme Stock 400% Surge
Renaissance Technologies, an elite hedge fund, strategically acquired 1 million GameStop shares last quarter, reaping significant gains as the stock surged over 400% this week. Initially worth $13 million, the stake briefly soared to $65 million at Tuesday's high, driven by renewed interest from retail investors like Keith "Roaring Kitty" Gill. RenTech, known for its algorithmic trading, also made notable portfolio adjustments, increasing its AMC holdings and reducing stakes in Nvidia and Tesla, showcasing its dynamic investment strategy amidst market volatility.
READ MOREChina Dumps Record Amount of US Debt Amid Strategic Diversification
China sold a record $53.3 billion in US Treasury and agency bonds in Q1 2024, marking a significant shift away from American assets as trade tensions with the US escalate. Analysts interpret this move as a deliberate diversification strategy, with China increasing its gold reserves to 4.9%, the highest since 2015. This trend, coupled with rising geopolitical tensions and potential tariff hikes from both the Biden administration and former President Trump, underscores China's intent to reduce reliance on the US dollar amidst a volatile economic relationship.
READ MORESticker Shock: Buying a Car in the US is More Expensive Than Ever
Despite improved production, car prices in the US remain sky-high due to lingering pandemic effects and soaring interest rates. The average new car price hit $48,759 in December 2023, driven by pent-up demand and high loan rates, with used car prices also elevated. While supply chain issues have eased, manufacturers have been slow to replenish inventories, keeping prices inflated. Relief may come as the Fed plans to cut interest rates in 2024, potentially easing the financial burden on car buyers.
READ MORE"Russian and Chinese are brothers forever" - Putin and Xi Challenge Western Dominance
During his visit to Beijing to mark 75 years of diplomatic relations, Russian President Vladimir Putin emphasized a "brothers forever" bond with Chinese President Xi Jinping. Both leaders presented their relationship as a stabilizing force against Western hegemony, specifically targeting US-led alliances and sanctions. Xi urged a peaceful resolution to the Ukraine conflict and the Israeli-Palestinian crisis, condemning Cold War mentality and unilateral power politics. They praised their move to conduct 90% of trade in national currencies, reinforcing their commitment to a multipolar world order and opposing Western-imposed trade restrictions.
READ MORESilver's Surge: Catching Up to Gold with Strong Industrial Demand
Silver is finally catching up to gold, with a year-to-date gain of 17.6% as of April 2024, outpacing gold's 13.4%. This surge is driven by a significant supply deficit for the fourth consecutive year and robust industrial demand from sectors like photovoltaics, vehicle electrification, 5G technology, and AI applications. Despite market recalibration and interest rate expectations, WisdomTree forecasts silver to trade above $32/oz by Q1 2025, reflecting its leveraged relationship with gold and increasing industrial applications. The strong correlation between silver and gold, alongside growing industrial demand, positions silver for continued gains amid economic fluctuations.
READ MOREBitcoin Rallies on Cooling Inflation, Eyes New Highs
Bitcoin surged 6% to $66,300, breaking its stagnation and crossing above the key 50-day moving average, spurred by optimism over cooling U.S. inflation that also lifted the S&P 500 and other stock indices to record highs. This bullish move, alongside potential macroeconomic shifts and inflows to new Bitcoin ETFs, fuels optimism for a return to Bitcoin's March highs. Other cryptocurrencies like Ether, Solana, and memecoins also saw significant gains, indicating a broader market uplift.
READ MORESilver Poised for Major Breakout: Key Levels to Watch
Silver has achieved its first significant upside breakout in three years, surpassing the $27 resistance. Now, all eyes are on the $30 barrier, which if overcome, could propel prices to $45-$55. Technical analysis indicates that silver is in the final stages of a 13-year "cup and handle" formation, setting the stage for a major advance. Investors are advised to monitor for a monthly close above $31, which would signal a robust bullish phase.
READ MORERay Dalio Warns of Possible U.S. Civil War Amid Political Fracturing
The founder of Bridgewater Associates, the world's largest hedge fund, warns of a 35-40% chance of civil war in the U.S., foreseeing potential political fracturing as Americans might move to states aligning with their views, disregarding federal rules they oppose. Highlighting the 2024 elections as crucial for democracy and addressing existential risks like AI and climate change, Dalio suggests investors look to stable foreign markets and even jokingly considers Taylor Swift for president, emphasizing the need for unity and strong leadership.
READ MOREJobless Claims Drop, Indicating Steady Employment Despite Recent Surge
Jobless claims fell by 10,000 to 222,000 last week, suggesting layoffs remain low despite a recent spike tied to school spring breaks in New York. This drop reinforces the trend of minimal layoffs, reflecting a strong labor market that continues to support economic growth, with both the Dow Jones and S&P 500 rising in response.
READ MORE