Gold and Silver Industry & Investing News

President Trump has strongly urged Federal Reserve Chair Jerome Powell to cut interest rates, but economists say this won’t happen in the Fed’s upcoming meeting. The Fed is expected to keep rates steady at 4.25% to 4.5% as it aims to control inflation while the economy remains stable. Despite Trump’s criticism and political pressure, Powell remains cautious, especially with the risk that new tariffs could push prices higher.

As the Federal Reserve prepares to announce its latest interest rate decision, the U.S. economy shows mixed but mostly steady signals. The job market added 147,000 jobs in June, and the unemployment rate held steady at 4.1%. Consumer sentiment and retail sales are trending up slightly, while mortgage rates and home sales remain steady. Inflation rose to 2.7% in June, and the economy grew by 3% in the second quarter, beating expectations despite a weak first quarter. Most analysts do not expect the Fed to cut rates this week, as trade tensions and inflation continue to weigh on the outlook.

Outflows from China’s largest gold ETFs are reaching record levels as investors rotate into the stock market. Gold’s recent price rally has slowed due to new trade deals and easing tensions, while Chinese equities have rallied on hopes for stronger corporate profits. Despite this, some analysts still expect gold prices to rise in the future due to ongoing geopolitical risks and market catalysts.

Upper-income Americans are increasingly struggling to keep up with credit card and auto loan payments, signaling rising financial stress even among higher earners. Delinquencies in households earning $150,000 or more have surged nearly 20% over two years, partly due to slower hiring and higher borrowing costs. This shift highlights growing economic vulnerability as consumer spending from top earners has been a key driver of growth.

The Federal Reserve is expected to keep interest rates steady, but two Fed governors, Christopher Waller and Michelle Bowman, may dissent and push for cuts amid concerns about a slowing economy. This rare division reflects uncertainty about growth, hiring, and inflation, as well as political pressures and jockeying for the Fed Chair position in 2026. While most officials see steady rates as appropriate, others worry the job market is weakening and want to lower borrowing costs soon.

In its latest Quarterly Gold Report, Invesco analyzes how gold has performed recently alongside other investments. The report highlights the impact of major economic factors like bond yields, the US Dollar, and inflation expectations, providing insights into what drives gold prices and what investors should watch in the coming months.

U.S. economic growth rebounded strongly in the second quarter, growing at a 3.0% annual rate, but this improvement hides some weaknesses. The main boost came from a sharp drop in imports, which reduced the trade deficit, while domestic demand grew at its slowest pace in over two years. Consumer spending rose moderately, but business investment slowed, and homebuilding declined for a second straight quarter. Trade uncertainties and tariffs continue to weigh on the economy.

The Federal Reserve is expected to keep interest rates steady at this week’s meeting, but several interesting developments are unfolding behind the scenes. Two Fed governors are pushing for rate cuts, which could lead to rare dissent in the decision. Meanwhile, Fed Chair Jerome Powell faces pressure from President Trump to lower rates amid debates about tariffs’ impact on inflation. Although no cut is expected now, many see a possible rate reduction in September depending on upcoming economic data.

Gold held steady just above $3,330 per ounce ahead of the Federal Reserve’s interest rate decision. While the Fed is expected to keep rates unchanged, traders are watching closely for any hints from Chair Jerome Powell about possible rate cuts later this year. Lower rates tend to support gold prices. Despite ongoing trade tensions and geopolitical risks fueling gold’s rise this year, recent progress in U.S.-China talks has not boosted market optimism much.

Gold inched up as the dollar weakened slightly before the Federal Reserve’s upcoming decision on interest rates. Market attention is focused on whether the Fed will signal any rate cuts, which could influence gold prices. Progress in trade talks between the U.S. and China, plus deals with other major economies, has improved market confidence. Meanwhile, silver and platinum prices dipped slightly, while palladium edged higher.