Gold and Silver Industry & Investing News

South African mining company Gold Fields has agreed to buy Australian miner Gold Road Resources for A$3.7 billion ($2.4 billion), offering a 14.5% premium over Gold Road’s previous closing price. This acquisition will give Gold Fields complete ownership of the Gruyere gold mine in Western Australia, which the two companies currently operate together as a joint venture. The deal is part of a broader trend of consolidation in the gold mining sector, fueled by record-high gold prices and geopolitical uncertainties. Other recent major acquisitions in Australia include Northern Star’s purchase of De Grey Mining and Ramelius Resources’ takeover of Spartan...

Gold prices jumped over 2% on Monday due to a weakening dollar and investors seeking safe-haven assets following President Trump’s announcement of new tariffs. The metal reached $3,313.21 per ounce as markets await the Federal Reserve’s upcoming decision on interest rates. Goldman Sachs predicts gold will continue to outperform silver, citing slowing Chinese solar production, U.S. recession risks, and strong central bank gold purchases in 2025.

Gold prices have bounced back above $3,300 per ounce after experiencing their first consecutive weekly losses this year. Investors are watching closely as the Federal Reserve prepares for its meeting this week, where rates are expected to remain unchanged despite President Trump’s calls for cuts following strong job data. Gold has risen nearly 25% this year, reaching a record high above $3,500 in April, driven by safe-haven buying amid Trump’s disruptive trade policies, Chinese speculation, and central bank purchases. Meanwhile, trade tensions continue as Trump indicated he has no plans to speak with his Chinese counterpart this week.

March 2025 saw central banks around the world continue their gold buying trend, with net additions of 17 tonnes. While countries purchased 35 tonnes in total, this was partially offset by 18 tonnes in sales. Poland emerged as the month’s biggest buyer, adding 16 tonnes to its reserves, with Kazakhstan and China also making significant purchases. For 2025’s first quarter, Poland dominates buying with 49 tonnes added, while Uzbekistan has been the most active seller, reducing holdings by 15 tonnes.

The April jobs report showed stronger-than-expected growth with 177,000 new jobs and steady 4.2% unemployment, supporting Fed Chair Powell’s cautious approach to interest rates. President Trump, however, is pushing for rate cuts, citing low inflation and decreasing costs in gas, groceries, and mortgages. While inflation has slowed to 2.6% in March, it remains above the Fed’s 2% target. Market traders now see June rate cuts as less likely, especially as economists warn that Trump’s tariffs could significantly impact the economy in coming months.

Chinese investors sold nearly 1 million ounces of gold before China’s Labor Day holiday, causing gold prices to drop to their lowest in two weeks (around $3,200/oz). According to Goldman Sachs trader Adam Gillard, this reversed almost all positions bought the previous week and reduced China’s total gold holdings by 5%. Despite this selloff, China still holds about 40% of global open interest in gold. Gold remains a top-performing asset this year, up about 23% overall.

Morgan Stanley forecasts a steady decline in mortgage rates through 2026 as treasury yields are expected to drop. The housing market has stalled since 2022 when rates doubled from 3.5% to nearly 7%, remaining above 6.5% despite recent interest rate cuts. While the Federal Reserve influences mortgage rates, they’re more directly tied to 10-year treasury yields, which lenders use as pricing benchmarks. Treasury Secretary Scott Bessent has committed to lowering these yields to provide housing relief, potentially stimulating economic growth by revitalizing the long-dormant market.

Japan’s Finance Minister Katsunobu Kato made notable comments stating that Japan’s massive US Treasury holdings (the largest of any foreign nation at $1.13 trillion) could potentially be used as a “card” in trade negotiations with the United States. While Kato didn’t suggest Japan is actively considering selling these holdings, his remarks represent an unusual public acknowledgment of this economic leverage. Financial experts called this “a very serious tactic to discuss publicly” that could impact markets, though initial market reaction was calm. These comments come during ongoing trade negotiations between Japan and the US, with talks expected to intensify in mid-May.

The April jobs report showed strong resilience in the US labor market despite President Trump’s recent “Liberation Day” tariff announcements. The economy added 177,000 jobs (exceeding the expected 138,000), while unemployment remained steady at 4.2%. Wage growth was slightly lower than expected. Transportation and warehousing sectors saw significant job increases, while federal government employment decreased. The Federal Reserve is unlikely to cut interest rates soon, as the job market appears stable. However, economists note this report may not fully reflect potential impacts from the April 2nd tariff announcements, as the data collection period largely preceded them.