Gold and Silver Industry & Investing News

For the first time since early 2022, the US economy has experienced negative growth. According to the Bureau of Economic Analysis, GDP contracted at a 0.3% annual rate in the first three months of 2025, underperforming economists’ predictions. The downturn follows a strong fourth quarter in 2024 when the economy grew at 2.4%. A major factor in the decline was increased imports, which count against GDP measurement.

Gold prices fell 1.3% to $3,274.10 an ounce on Wednesday, marking the second consecutive day of decline. This drop is attributed to a stronger dollar and reduced US-China trade tensions. Despite this dip, gold is on track for its fourth straight monthly gain, up nearly 5% in April. Market analysts suggest gold may be entering a consolidation period after recently hitting a record high of $3,500.05 on April 22. Investors are now focusing on upcoming US economic data, including personal consumption expenditures and non-farm payrolls, which could influence Federal Reserve interest rate decisions.

Consumer debt has reached an all-time high of over $18 trillion nationally, with the average family owing more than $100,000. The situation has become so dire that services like DoorDash now offer “buy now, pay later” options for meals. Default rates are climbing, particularly among vulnerable populations. While federal relief seems unlikely, some states are addressing medical debt through legislation, and some localities are using COVID funds to buy up medical debt. More ambitious solutions like the Poor People’s Campaign’s “Jubilee Platform” to cancel various debts for low-income Americans face significant political hurdles but could become important in upcoming elections.

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.