Gold and Silver Industry & Investing News

Gold prices fell over 2% on Friday, marking its worst weekly performance since November 2024 with total losses exceeding 4%. The decline stems from the dollar’s fourth straight weekly gain and reduced safe-haven demand following a temporary U.S.-China trade agreement. This drop comes after gold reached an all-time high of $3,500.05 per ounce last month, driven by central bank buying and trade war concerns. Recent signs of slowing U.S. inflation and weaker economic data point to potential Federal Reserve rate cuts, which typically favor gold. Other precious metals also declined, with silver down nearly 2% and platinum and palladium showing...

This year’s In Gold We Trust report by Incrementum introduces what the authors call the “new gold playbook”, driven not by Western financial markets, but by surging demand from central banks and emerging markets, especially China. The gold market’s center of gravity is shifting East, away from ETFs and Wall Street sentiment, toward sovereign strategies and personal savings preferences in Asia and the Middle East.

US inflation hit its lowest point since February 2021, dropping to 2.3% in April. However, economists warn this is likely the “low point in 2025” due to recently implemented tariffs whose effects weren’t fully captured in April’s data. Even with some tariff reductions, trade restrictions remain at their highest levels since World War II. The Federal Reserve is closely monitoring the situation, as rising inflation could complicate their plans for potential interest rate cuts. While most economists don’t expect stagflation, they anticipate inflation rising above 2.5% in the coming months.

Major financial institutions including Goldman Sachs, JP Morgan, and Barclays have reduced their U.S. recession forecasts following a 90-day tariff truce between the U.S. and China. Goldman Sachs lowered its recession probability from 45% to 35% and increased its 2025 U.S. GDP growth forecast to 1%. The banks have also adjusted their Federal Reserve rate cut predictions, with all three now forecasting just one rate cut in December 2025 instead of earlier timelines. Goldman Sachs also raised its year-end S&P 500 target to 6,100 points.

Markets are concerned the Trump administration wants a weaker dollar through trade deals, triggering currency volatility. However, an insider claims US officials aren’t including currency pledges in negotiations, with Treasury Secretary Bessent being the only person authorized to discuss such matters. While the dollar has dropped 8% since Trump took office, Bessent consistently maintains the “strong dollar policy is intact” and recently confirmed no currency discussions occurred during China talks. Markets remain skeptical due to Trump’s history of criticizing Asian currency manipulation and his appointment of advisers who’ve explored reducing the “burdens” of the reserve currency. Traders believe the administration’s...

Walmart’s stock fell 5% despite reporting better-than-expected earnings in Q1, as the company warned about the impact of Trump’s tariffs. CEO Doug McMillon stated that Walmart has already had to increase some prices and will continue to do so throughout the year due to the “magnitude of the tariffs” and “narrow retail margins.” The tariffs are affecting not just Chinese imports (estimated at 15% of Walmart’s US sales) but also products from countries like Costa Rica, Peru, and Colombia, including bananas, avocados, coffee, and roses. While Walmart projects 3.5-4.5% sales growth for Q2, it’s not providing specific earnings guidance due...

US producer prices unexpectedly fell 0.5% in April, the largest drop in five years, primarily due to shrinking profit margins. This suggests companies are absorbing costs from higher tariffs rather than passing them to consumers. Many businesses report being unable to fully pass on increased costs, with fewer than one in five firms saying they could transfer a 10% cost increase to customers. While some automakers are offering discounts or freezing prices, retailers like Walmart warn that price increases are coming soon due to tariffs and economic uncertainty.

Gold prices dropped more than 3% on Monday following eased trade tensions between the US and China. Despite this significant decline, experts like Peter Grant from Zaner Metals suggest that the long-term outlook for gold remains positive. Analysts at Ned Davis Research recommend holding rather than selling gold positions, noting that while the market is showing signs of being overbought, economic uncertainty and geopolitical tensions continue to support gold prices. Grant expects gold to consolidate between $3,200-$3,500 with potential to retest the recent record high of $3,509.90 within weeks.

Fed Chair Jerome Powell warned that future supply chain and commodity shocks could make inflation more volatile than in the 2010s. At a research conference, he noted that long-term interest rates are now much higher than after the 2007-09 financial crisis, with the current Fed benchmark at 4.25%-4.5%. As part of its five-year policy review, the Fed is reconsidering its 2019 framework, which allowed inflation to exceed 2% to compensate for previous undershooting—timing that economist Sal Guatieri suggests may have contributed to record inflation. Unlike the previous review that worried about rates hitting zero, this update will incorporate lessons from...