Silver Rises Over 120% YTD 
Gold eased slightly from Monday’s all-time high of $2,956.19 as investors took profits, though prices remain supported by changing Federal Reserve rate cut expectations and rising haven demand.
Increasing concerns about the US economy have dramatically shifted rate cut expectations, with markets now pricing in a quarter-point Fed cut in July—two months earlier than anticipated just last week. This monetary policy outlook benefits non-yielding assets like gold.
Geopolitical tensions are adding significant support, as President Trump has implemented a series of measures targeting China that could deteriorate relations between the world’s two largest economies, while also increasing pressure on Iran. Additionally, gold has benefited from falling Treasury yields following record demand at a recent two-year note auction and disappointing US business activity data last week.
These combined factors have triggered the largest inflows into gold-backed ETFs since 2022, providing additional momentum to gold’s impressive 12% rally so far this year. Investors are now looking ahead to Friday’s core PCE price index—the Fed’s preferred inflation gauge—for further clues about the central bank’s policy direction and potential impact on precious metals.
