Gold and Silver Industry & Investing News

India’s gold market showed mixed signals in May 2024, with gold prices climbing over 30% year-to-date despite a temporary pause in May. While jewelry sales slowed after the wedding season, physical gold investments remained strong, and gold-backed lending surged 120% year-over-year. Gold ETFs returned to positive territory with modest inflows after two months of outflows. The Reserve Bank of India paused its gold purchases but saw gold’s share in forex reserves grow to a record 12.3%. Looking ahead, demand is expected to recover when India’s festive buying season begins in mid-August.

Wealth management firm Brown Shipley is repositioning portfolios away from US assets, citing concerns about political uncertainty, a $1.83 trillion budget deficit, and slowing growth. The S&P 500’s 5.7% decline this year has underperformed other markets, prompting a strategic shift. The firm is now overweight in three key areas: gold (up 18.2% YTD), which benefits from uncertainty and central bank buying; emerging markets (up 4.4% YTD), which could gain from dollar weakness; and Japanese equities, which offer low valuations and benefit from corporate reforms. Chief Investment Officer Daniele Antonucci emphasizes they’re not abandoning the US entirely but recognizing it won’t...

Japan’s inflation continues to accelerate, with May’s core CPI hitting 3.7% year-over-year, surpassing both market expectations and the BOJ’s 2% target for over three years. The inflation surge is broad-based, with goods prices rising 5.3% and services inflation at 1.4%. Food costs are particularly problematic – rice prices have doubled, rice balls cost 20% more, and chocolate bars are up 27% from a year ago. The Bank of Japan faces a challenging balancing act: persistent inflation suggests the need for higher interest rates, but uncertainty around President Trump’s trade policies creates economic risks. Governor Ueda has indicated the BOJ’s commitment...

Gold has been consolidating in a healthy pattern after reaching new highs, and this pause may continue for another month or two. The article identifies gold’s current move as the third major breakout in its history, following the 1972 breakout from a 100-year base and the 2005 breakout above $500. Based on historical patterns, gold could reach $4,800-$5,300 per ounce within 12-16 months, with silver potentially hitting $50. However, a 17-20% correction is likely needed along the way to fuel the next major advance.

China’s exports of rare earth magnets plummeted by more than 50% in May compared to April, reaching their lowest point in over five years. The sharp decline stems from new export restrictions China imposed in April on rare earth products and magnets. As the world’s dominant supplier controlling over 90% of global production, China’s export curbs have disrupted supply chains for industries including automotive, aerospace, semiconductors, and military equipment. While Beijing has promised to expedite approval processes following U.S.-China trade talks, customs officials remain cautious about processing shipments, creating uncertainty for global buyers.

Canada may increase its counter-tariffs on US steel and aluminum if a broader trade deal isn’t reached with President Trump by July 21. Prime Minister Mark Carney announced new measures to support Canadian steel and aluminum companies, including changes to federal procurement rules that will favor Canadian producers. The US recently increased import duties on these metals from 25% to 50%, which could significantly impact Canada, the largest supplier of steel and aluminum to the US. Canada has already imposed 25% retaliatory tariffs on $15.6 billion worth of US steel and aluminum products.

Toronto-based Greenland Resources Inc. has received a 30-year permit to mine molybdenum and magnesium at the Malmbjerg project in east Greenland. This is significant because molybdenum is essential for steel and defense manufacturing, with only China (87%) and the US (13%) currently producing it. The Canadian company says the project could supply all of Europe’s defense molybdenum needs for decades. The permit comes as Greenland faces increased geopolitical attention from both the US and EU, who want to reduce dependence on Chinese raw materials. Greenland’s government sees the project as a step toward economic self-sufficiency and job creation, following recent...

Japan’s chief trade negotiator Ryosei Akazawa expressed uncertainty about ongoing trade talks with the United States, describing negotiations as being “in a fog.” Japan hopes to convince President Trump to eliminate a 25% tariff on Japanese cars and other import tariffs currently paused until July 9. The lack of progress raises concerns that talks may extend past Japan’s July 20 upper house elections, making agricultural concessions politically difficult for Prime Minister Ishiba. The tariffs are already impacting Japan’s economy, with exports declining in May for the first time in eight months.

Gold prices dropped 2.5% this week, heading for their worst weekly performance in over a month. The decline came after the Federal Reserve signaled fewer interest rate cuts ahead and as tensions between Israel and Iran appeared to ease temporarily. President Trump said he’ll decide within two weeks whether the U.S. will intervene in the conflict. The stronger dollar and profit-taking by traders also contributed to gold’s pullback from recent highs.