Gold and Silver Industry & Investing News

Gold is heading toward its eighth consecutive weekly gain, trading around $2,927 per ounce, driven by strong haven demand and growing ETF holdings. Trading near $2,927 an ounce, the precious metal has benefited from multiple tailwinds, including robust ETF inflows exceeding 16 tons this week alone, marking the largest weekly increase since 2023. The rally has been fueled by geopolitical uncertainties, particularly concerns over President Trump’s potential meeting with Vladimir Putin regarding Ukraine, which could sideline European allies. After gaining 27% in 2024, gold’s appeal has been further enhanced by a weakening US dollar and Goldman Sachs’ bullish outlook, with...

In a Fox News interview with Sean Hannity, President Trump has conceded that “inflation is back,” contrary to his campaign promise of immediate price control, but firmly places responsibility on his predecessor’s policies. January’s inflation report showed the biggest monthly increase since August 2023, with prices rising 3% year-over-year for the first time since June 2024. While Trump accurately notes that Biden held office for most of the period covered in the latest inflation report, his attribution of inflation to Biden’s “Green New Scam” and claims of $9 trillion in spending are contested. Economists remain divided on the causes of...

February was a good month for metals with the Global Precious Metals Monthly Metals Index rising 7.36%. Gold continued its record-breaking run, reaching $2,942.70 per ounce, prompting major institutions to raise their forecasts – UBS now projects a peak of $3,200, while Goldman Sachs targets $3,100 by year-end. Silver has also shown significant strength, climbing to $32.80 per ounce on combined safe-haven and industrial demand. Palladium led percentage gains with a 9.17% increase to $976 per ounce, despite facing market uncertainty from Trump Administration tariffs and production changes at Sibanye Stillwater. Platinum maintained steady growth with a 6.63% increase to...

China’s gold market showed mixed signals in January 2025, with the People’s Bank of China adding another 5 tonnes to its reserves, bringing total holdings to 2,285 tonnes. While gold prices saw their strongest January in years, with LBMA and Shanghai benchmarks rising 8% and 5% respectively, retail demand remained subdued. Despite a 3% monthly increase in SGE withdrawals to 125 tonnes, overall demand stayed below historical levels, and Chinese gold ETFs experienced outflows of US$399 million.

Analysis of 1,127 records from Elon Musk’s DOGE commission reveals $8.5 billion in claimed federal budget cuts across 39 agencies in its first month. USAID has been hit hardest with $6.5 billion in cuts, followed by the Department of Education at $502 million and Social Security Administration at $232 million. However, questions remain about the commission’s reporting accuracy and the timeline over which these “savings” would actually occur.

President Trump’s unexpected focus on auditing Fort Knox, mentioned multiple times during an Air Force One press briefing, has raised eyebrows among market watchers. While Treasury Secretary Scott Bessent has confirmed that the gold is regularly audited and “all present and accounted for,” the president’s interest might signal a more significant financial maneuver. The key lies in the dramatic disparity between Treasury’s official gold valuation of $42 per ounce and current market prices approaching $3,000. A revaluation to market prices could instantly generate approximately $750 billion in Treasury assets, though Bessent has dismissed suggestions this might lead to creating a...

Gold jewelry demand in India has fallen significantly since January, with the weakness continuing into February. Meanwhile investment interest remains robust through bars, coins, and ETFs, which saw record inflows in January. The Reserve Bank of India has returned to gold buying, adding 2.8 tonnes to its reserves after a December pause. The market is seeing structural changes in consumer behavior, with many buyers choosing to exchange old gold for new jewelry or sell existing holdings to lock in profits. This shift has created challenges for retailers, leading to a liquidity crunch in the industry and causing domestic gold prices...

Research by Duke University’s Campbell Harvey and former TCW manager Claude Erb suggests gold’s current rally may be setting up investors for disappointment. Their analysis shows gold’s price-to-CPI ratio is now at 9-to-1, even higher than the 7-to-1 ratio that preceded gold’s 50% price drop after 2012. The researchers challenge two popular arguments for gold investment: its effectiveness as an inflation hedge and its role as protection against geopolitical risks. While gold has outperformed inflation for the past 20 years, the study found that gold only maintains its purchasing power over very long periods – perhaps a century – and...

Markets are grappling with renewed stagflation fears as stubborn 3% inflation combines with concerns over President Trump’s aggressive trade policies. While investors remain generally optimistic about Trump’s pro-growth agenda, a Bank of America survey shows fund manager worry about stagflation has reached a seven-month high. The threat of new tariffs on autos, semiconductors, and pharmaceuticals, along with existing trade measures, could simultaneously slow growth and fuel inflation, creating conditions reminiscent of the 1970s economic challenge.

JP Morgan forecasts gold prices will reach $3000 per ounce in 2025, driven primarily by continued central bank purchases and ETF inflows. Following a 27% rally in 2024, the outlook remains strong with central bank buying up 54% year-over-year in late 2024, including renewed purchasing by China’s central bank. The bank identifies two scenarios – either increased trade tensions and inflation, or a Federal Reserve easing cycle – both of which could push gold prices higher. Adding to the bullish outlook, JP Morgan notes that with over $6 trillion currently in money market funds and ETF holdings 6% below 2020...