Gold and Silver Industry & Investing News

The dollar strengthened by 0.30% today following President Trump’s announcement of a comprehensive trade deal with the UK, which eased global trade tensions. Supporting this rise were better-than-expected US jobless claims data and increased Q1 unit labor costs. Meanwhile, gold prices fell 0.84% to $3,366.13 per ounce due to reduced safe-haven demand and the stronger dollar. Silver prices, however, increased slightly by 0.21% after strong German industrial production data boosted industrial metals demand. Both precious metals found some support from ongoing geopolitical tensions in South Asia and the Middle East, as well as the Bank of England’s interest rate cut.

In a recent Bloomberg TV interview on ‘The Pulse with Francine Lacqua,’ Grace Peters, global Head of Investment Strategy at JPMorgan Private Bank, advised investors to focus on geographic diversification amid increasing market uncertainty and volatility. She specifically recommended buying Indian, European, and Japanese stocks while adding gold as a hedge against geopolitical risks.

Costco has implemented a purchase limit of two gold bars per transaction within a 24-hour period due to overwhelming demand for its 24-karat, one-ounce gold bars. Initially introduced in 2023 at around $1,950-$1,980 per bar, these precious metal products have consistently sold out within hours of restocking. A Bloomberg survey found that approximately 77% of Costco stores across 46 states reported sellouts within the first week of October 2024. Wells Fargo analysts estimate that Costco’s gold bullion sales generate between $100-200 million monthly, though financial experts caution about the volatility of precious metals investments.

Major central banks are taking divergent policy paths as U.S. tariffs create different challenges across the global economy. While the U.S. Federal Reserve holds rates steady due to inflation concerns, the Swiss National Bank is considering negative rates to combat currency strength, and the Bank of Japan maintains a potential hiking bias despite growing caution. The article outlines the current positions of ten developed-market central banks, with many European and Pacific nations cutting rates or signaling future cuts while dealing with the disinflationary effects of stronger currencies against the dollar and the broader impact of trade tensions.

China’s central bank has approved foreign exchange purchases for commercial banks to fund increased gold import quotas, according to two sources familiar with the matter. This move comes alongside other stimulus measures, including interest rate cuts and liquidity injections, as China works to offset economic damage from the U.S. trade war. The increased gold imports could help meet growing demand for the precious metal while simultaneously slowing the yuan’s appreciation, which has been rising as investors move money out of U.S. assets. Gold recently reached an all-time high of $3,500 per ounce amid trade tensions, with China’s central bank also...

The British pound strengthened on Thursday after the Bank of England cut interest rates by 0.25 percentage points to 4.25%, with an unexpected split among policymakers where two voted to maintain current rates. Sterling gained 0.24% against the U.S. dollar to $1.33215. The currency was also boosted by news that the U.S. and Britain will announce a trade deal to lower tariffs on some goods, as confirmed by President Trump who described it as a “full and comprehensive” agreement.

Gold prices fell on Thursday, dropping 0.4% to $3,352.63 an ounce, as President Trump’s announcement of a comprehensive trade deal with Britain eased market tensions. The deal, which Trump described as one that will “cement the relationship” between the two nations, reduced investor interest in gold as a safe-haven asset. Markets are also watching upcoming U.S.-China trade talks in Switzerland. In other developments, China’s central bank has approved foreign exchange purchases for gold imports under increased quotas, which analyst Han Tan says should support bullion demand. Additionally, escalating tensions between India and Pakistan, with Pakistan reporting it shot down 12...