Gold and Silver Industry & Investing News

The Federal Reserve faces a difficult challenge balancing two opposing economic threats: rising prices due to new tariffs and increasing unemployment. This combination risks “stagflation” – a dangerous economic condition where inflation increases while job growth weakens. Fed Chairman Jerome Powell has chosen a wait-and-see approach for now, but history shows stagflation is extremely difficult to resolve. Similar to the 1970s crisis, today’s economy faces external price shocks (tariffs instead of oil prices) while consumers are already struggling. For investors, stagflation creates a challenging environment where both stocks and bonds typically perform poorly.

President Trump recently hinted he might fire Federal Reserve Chair Jerome Powell before his term ends next year, citing disagreements over interest rate policies. Powell maintains such a dismissal is illegal, and markets reacted negatively to the suggestion. Harvard Law Professor Daniel Tarullo, a former Fed Board member, explains there are two key legal questions: whether the Fed Chair position has “for cause” removal protection, and whether the Supreme Court would uphold presidential removal power over independent agency officials. Tarullo notes that while the Supreme Court has been expanding executive authority, several conservative justices have hinted they might view the...

Wall Street is experiencing significant volatility as President Trump escalates his criticism of Federal Reserve Chairman Jerome Powell. Trump wants immediate interest rate cuts to stimulate the economy, even threatening to fire Powell on social media before walking back those comments in an Oval Office meeting. Economic experts, including Moody’s Analytics chief economist Mark Zandi, predict no rate changes at the upcoming May Fed meeting, noting that monetary policy will likely remain unchanged until there’s more clarity on trade wars and economic policy. Investors are concerned about potential threats to Fed independence, which has historically led to inflation problems.

The US goods-trade deficit unexpectedly reached a record $162 billion in March 2025, widening by 9.6% from February. This surge was driven by companies rushing to import goods before President Trump’s new tariffs took effect. Imports rose 5% to $342.7 billion, with consumer goods reaching record levels. The widening deficit is expected to negatively impact first-quarter GDP, with some economists now forecasting a contraction instead of growth.

Apollo Global Management warns that Trump’s tariffs could trigger a summer recession, with Americans experiencing store shortages as early as May. According to their chief economist Torsten Slok, the timeline begins with April’s tariff announcements disrupting shipping from China, leading to supply chain issues by May, retail and trucking industry layoffs by June, and ultimately a recession by summer 2025. While Treasury Secretary Bessent acknowledges trade tensions with China are “unsustainable,” he doesn’t predict a full recession, and some analysts note existing inventory may delay visible impacts.

Record-high gold prices have triggered increased interest in gold investment products at Chinese banks. As demand surges, banks have raised minimum purchase amounts to manage risks while extending trading hours. This gold boom has significantly increased banks’ precious metal holdings (up 70% in 2024) and boosted their revenue from gold sales and transaction fees, making it an important growth area as interest margins narrow.

The US dollar is on track for its biggest two-month decline since 2002, falling 7.7% during March and April 2025. Two key factors drove this decline: Germany’s decision to end decades of austerity with increased public spending (boosting euro area growth expectations), and President Trump’s tariff announcements triggering a flight to safe-haven currencies like the yen, Swiss franc, and euro. Despite edging up 0.25% on Tuesday following reports that the Trump administration might soften planned tariffs, the dollar remains under pressure. Deutsche Bank notes that foreign investors are staging a “buyers’ strike” on US assets despite recovering prices. The euro,...

Gold declined 0.8% to $3,314.52 per ounce on Tuesday amid improving US-China trade relations. US Treasury Secretary Scott Bessent noted that trading partners had made “very good” proposals to avoid US tariffs, while China demonstrated willingness to reduce tensions by exempting some US goods from retaliatory measures. The Trump administration plans to ease automotive tariff impacts by reducing duties on foreign parts in domestically manufactured vehicles. Despite the short-term decline, analysts believe gold’s long-term upward trend remains intact, supported by emerging market central banks diversifying their reserves. Investors are awaiting key US economic data this week, including the personal consumption...