Gold and Silver Industry & Investing News

Gold prices dipped 0.5% to $3,326.51 on Thursday after hitting a record high of $3,357.40 earlier in the day as investors took profits ahead of a long weekend. Despite this pause, gold has gained nearly 3% this week, supported by a weakening dollar and escalating US-China trade tensions. Gold’s rally was particularly strong on Wednesday, surging 3.6% following President Trump’s order to investigate potential tariffs on critical mineral imports. Analysts remain bullish on gold’s long-term prospects despite expectations of short-term corrections.

Gold’s record-breaking momentum temporarily slowed on Thursday, trading at around $3,325 an ounce following Wednesday’s biggest one-day gain in two years. The pause came as positive signals emerged from initial US-Japan trade negotiations, with President Trump describing the talks as “big progress.” Despite this brief interruption, gold has surged almost 27% this year—matching its 2024 performance—as investors seek security amid escalating trade tensions. The rally has been fueled by dollar weakness and Federal Reserve Chief Jerome Powell’s cautious approach to tariffs, disappointing those hoping for swift central bank intervention. Nicholas Frappell of ABC Refinery attributes gold’s strength to multiple uncertainties:...

Federal Reserve Chair Powell warned that Trump’s tariffs could force the Fed to choose between its dual mandates of controlling inflation and supporting growth. Speaking in Chicago, he stated tariffs would likely push the economy “further away from our goals” throughout this year by potentially raising inflation while slowing economic growth. Powell explained that tariff-driven inflation might be temporary or persistent, depending on their magnitude, how quickly price increases spread, and whether inflation expectations remain stable. He offered no specific guidance on interest rates, saying the Fed is “well positioned to wait for greater clarity” before making policy changes. Markets...

China is dramatically shifting its oil imports from the US to Canada amid worsening trade tensions. Chinese refiners have reduced US oil purchases by about 90% while significantly increasing Canadian crude imports through the newly expanded Trans Mountain Pipeline. In March alone, China imported a record 7.3 million barrels from Canada’s west coast port, with even higher volumes expected in April. This shift represents another economic disruption resulting from President Trump’s trade policies.

U.S. manufacturing continued its positive trend in March, increasing 0.3% for the fifth straight month, with the sector growing at a robust 5.1% annualized pace in the first quarter of 2024. The automotive industry was particularly strong, with motor vehicle and parts production rising 1.2% following February’s significant 9.2% increase. However, overall industrial production declined 0.3% in March, exceeding economists’ expectations of a 0.1% drop. This decline was primarily driven by utilities output plummeting 5.8% as warmer weather reduced energy demands. Mining output, which includes oil and natural gas production, grew moderately at 0.6%. Despite manufacturing’s recent strength, economists express...

U.S. retail sales jumped 1.4% in March, the largest increase in over two years, as consumers rushed to purchase big-ticket items, especially vehicles, before potential tariff-induced price increases. While this surge exceeded expectations, economists warn it could lead to weaker future sales and doesn’t eliminate concerns about how ongoing trade wars might fuel inflation and slow economic growth in coming months. Restaurant sales showed strong growth, suggesting consumers remain confident despite trade tensions.

Recent market volatility has highlighted concerns about the U.S. dollar’s status as both a safe-haven asset and global reserve currency. Following President Trump’s April 2 tariff announcements, traditional market correlations have broken down, with the dollar falling to a three-year low while other safe-haven currencies like the Swiss franc and Japanese yen strengthened. Analysts suggest Trump’s aggressive trade policies are undermining a financial system that the U.S. previously championed. Though any shift away from dollar dominance won’t happen immediately due to its entrenched role in global transactions, experts believe the current trajectory could lead to higher borrowing costs for Americans...

Treasury Secretary Scott Bessent is urging top CEOs to stop worrying about tariffs, promising clarity within 90 days on trade policy, taxes, and deregulation. This reassurance comes as major business leaders express recession concerns, with JPMorgan’s Jamie Dimon predicting a downturn and Goldman Sachs’ David Solomon noting increased recession risks. Even Bessent’s former mentor Stanley Druckenmiller has criticized tariffs exceeding 10%. Consumer-facing companies are already feeling the impact, with Constellation Brands reporting decreased spending on restaurants and consumer goods affecting their beer sales. Bessent has dismissed these Wall Street concerns, emphasizing the administration’s focus on Main Street over Wall Street....

S&P Global Ratings has issued a warning that it may further downgrade the United States’ credit rating from its current AA+ status, citing unsustainable debt levels and ongoing political dysfunction. In an April 14 report, S&P indicated that upcoming budget negotiations will be crucial in determining US creditworthiness. The US has already experienced credit downgrades, with S&P first reducing the rating in 2011 during a debt ceiling crisis when national debt was $15 trillion (66% of GDP). Today, that debt has ballooned to $36 trillion, with public debt now representing approximately 100% of GDP. This deteriorating fiscal outlook prompted Fitch...