Gold and Silver Industry & Investing News

Australia’s central bank is keeping a close eye on inflation risks, even as recent data shows price growth remains within target. Reserve Bank of Australia (RBA) Governor Michele Bullock warned that high labor costs and weak productivity could still push inflation higher. While the board is aligned on direction, members were divided on timing, with some favoring an immediate rate cut. Bullock emphasized the need for more data before making further moves and highlighted global uncertainty—especially from ongoing trade tensions—as a key concern.

Hungary’s inflation rate rose to 4.6% in June, driven by higher food, energy, and service costs. While this matched economists’ expectations, it marked the highest inflation level since March. Despite government efforts to cap prices on essentials like food, energy, and telecom services, consumer prices continue to rise. Food alone saw a 6.2% increase, with staples like eggs and flour jumping over 20%. The central bank has held interest rates steady for nine consecutive months, signaling ongoing caution amid persistent inflation and weak economic growth.

Australia’s central bank surprised markets by keeping interest rates steady at 3.85% instead of cutting them as expected. Most investors had predicted a rate cut due to slowing inflation and weak consumer spending, but the Reserve Bank of Australia said it needs more data before easing. The decision sent the Australian dollar higher and bond markets lower. While the bank still sees a rate cut in the near future, likely in August, it’s treading cautiously amid global uncertainty and recent trade tensions.

President Trump has announced sweeping new tariffs: 25% on goods from Japan and South Korea, and up to 40% on imports from a dozen other countries. Set to take effect August 1, the move has reignited fears of global trade disruptions. Trump warned that any retaliatory tariffs would be met with even higher U.S. duties. While framed as a strategy to revive domestic manufacturing, the tariffs are already shaking markets, boosting bond yields, and raising recession concerns. Negotiations remain possible, but uncertainty is high.

Gold edged lower this week, driven by a spike in U.S. 10-year Treasury yields after President Trump introduced aggressive new tariffs targeting major Asian trade partners. The move—intended to force renegotiation of trade deals—raised concerns about slowing global growth and potential retaliatory moves from China. While rising yields typically reduce gold’s appeal, the economic uncertainty introduced by tariffs could support gold in the longer term. Investors are also eyeing upcoming Fed meeting minutes for hints about future interest rate paths.

A UBS survey of nearly 40 central banks reveals significant concerns about U.S. financial stability. Almost half believe a U.S. debt restructuring is possible, while two-thirds worry about Federal Reserve independence amid criticism from President Trump and White House officials. Despite these concerns, 80% expect the dollar to remain the world’s reserve currency. Central banks are increasingly diversifying into gold, with 67% viewing it as the best investment through 2030. The survey shows growing pessimism about the global economy, with many expecting stagflation rather than a soft landing.

President Trump’s trade timeline is shifting. While tariff letters were delivered Monday with a July 9 progress deadline, countries won’t actually pay tariffs until August 1. This gap has confused financial markets. Administration officials are showing flexibility with deadlines. Treasury Secretary Scott Bessent and economic adviser Stephen Miran suggest countries negotiating in good faith could get extensions, potentially through Labor Day. Despite recent political wins, major trade deals with the EU, India, and Japan remain unfinished—only the UK and Vietnam have framework agreements so far.

Gold’s 27% price surge since late 2024 has sparked massive interest in gold-backed cryptocurrency tokens. The two dominant players, Tether’s XAUT and Paxos’ PAXG, control 85% of the $2.05 billion tokenized gold market. XAUT saw explosive 172% growth in holders, jumping from 3,104 to 8,466 wallets, while PAXG grew 38% to reach 48,763 wallets. Each token represents one troy ounce of physical gold stored in professional vaults.