U.S. Eyes Pakistan’s $6 Trillion Mineral Wealth in New Economic Partnership

Switzerland’s gold industry has expressed skepticism about Swatch CEO Nick Hayek’s proposal to impose a 39% export tax on gold bars shipped to the United States. Hayek suggested the retaliatory measure after President Trump imposed 39% tariffs on Swiss goods, though Trump later clarified gold would not face tariffs. The Swiss Association of Manufacturers and Traders in Precious Metals warned that such an export tax would harm Switzerland economically and damage its reputation as a free trade advocate. Switzerland continues diplomatic talks to lower U.S. tariffs.

Despite a cooler-than-expected Consumer Price Index report, major Wall Street economists agree that higher inflation is coming due to tariffs. Goldman Sachs, UBS, and JPMorgan Chase predict that tariffs will push up consumer prices, with Goldman estimating consumers will bear about two-thirds of tariff costs by fall. President Trump criticized Goldman Sachs for this prediction, even suggesting CEO David Solomon should “focus on being a DJ” instead. JPMorgan’s chief economist estimates tariffs could add 1-1.5% to inflation, with some impact already visible.

Gold prices maintained modest gains after U.S. Treasury Secretary Scott Bessent urged the Federal Reserve to cut interest rates by at least 1.5 percentage points. The precious metal rose as much as 0.6% before settling near $3,365 per ounce. Lower interest rates typically benefit gold since it doesn’t pay interest, making it more attractive when yields fall. Gold has gained 28% this year, driven by geopolitical tensions and central bank purchases.

Gold continues its impressive rally in 2025, rising over 25% and heading for a third straight year of double-digit gains—a performance streak unseen since the mid-2000s. The precious metal has broken from traditional patterns, ignoring typical drivers like real yields and dollar strength. Instead, geopolitical tensions, trade protectionism, and central bank buying—particularly from China and other emerging economies seeking to diversify from the dollar—have fueled demand. While gold lacks intrinsic valuation metrics and faces potential headwinds from higher interest rates and cryptocurrency competition, Rothschild & Co maintains a strategic overweight position. They view gold as a crucial portfolio diversifier and