Gold and Silver Industry & Investing News

China has outlined several conditions for restarting trade talks with the Trump administration, including more respectful rhetoric from US officials, consistency in the US position, and addressing China’s concerns about sanctions and Taiwan. Beijing also wants a designated point person with Trump’s support who can help prepare a deal for Trump and Xi Jinping to sign. The ongoing trade dispute, with 145% US tariffs on most Chinese goods since Trump took office, threatens global economic stability and has led to broad Chinese public support for retaliation against the US.

President Trump has ordered an investigation into possible tariffs on all critical mineral imports to the US, citing national security concerns. The probe will examine market dynamics for minerals like cobalt, nickel, rare earths, and uranium. This move comes as the US remains heavily dependent on China and other countries for processed minerals essential to the economy. China recently retaliated against Trump’s tariffs by restricting rare earth exports, highlighting America’s vulnerability in this sector.

Gold prices hit a new record high of $3,317.90 per ounce on Wednesday as investors sought safe-haven assets following President Trump’s probe into potential tariffs on critical mineral imports. This move, seen as targeting China, comes alongside new export restrictions on AI chips to China. According to a BofA survey, “long gold” has now surpassed U.S. tech as the most crowded trade, with 73% of respondents believing U.S. market exceptionalism has peaked. ANZ has raised its year-end gold price forecast to $3,600.

Goldman Sachs and UBS have issued new bullish forecasts for gold prices, raising their targets significantly. Goldman Sachs analysts now predict gold will reach $3,700 per ounce by the end of 2024 and climb to $4,000 by mid-2026. UBS is similarly optimistic, forecasting $3,500 per ounce by December 2025. These upgraded forecasts follow gold’s impressive 6.6% surge last week, which pushed prices to a record high above $3,245 per ounce on Monday. Both banks had previously upgraded their outlooks in March, reflecting strong consensus on gold’s prospects amid global market uncertainty, particularly related to President Trump’s trade policies. Goldman has...

Fed Governor Chris Waller stated that if President Trump’s large tariffs remain in place, the Federal Reserve may need to cut interest rates sooner than planned. Despite potential inflation spikes up to 5%, Waller believes any tariff-induced inflation would be temporary, and the threat of economic slowdown would outweigh inflation concerns. He outlined two scenarios: a “large tariff” scenario (25% average rate) that might require immediate action, and a “smaller tariff” scenario (10% average rate) that would allow for more gradual policy adjustments.

The US has shown weakness in its trade war with China by creating carve-outs for consumer electronics from its recent 145% tariffs. While the White House defends these exceptions as strategic, critics see them as evidence of America’s vulnerable position against a well-prepared China. The US faces a difficult balance – imposing tariffs to bring manufacturing home while simultaneously hurting American manufacturers who depend on Chinese parts. China, having prepared for this confrontation, has responded with a mix of countermeasures including tariffs, export restrictions on critical minerals, and targeting American firms.

Bank of America’s recent poll shows investor sentiment has reached its most negative point in 30 years, with an overwhelming 82% of fund managers expecting weakening conditions. This pessimism has caused a dramatic shift in investment strategy. Fund managers have rapidly moved away from US stocks, swinging from a 17% overweight position in February to a 36% underweight position in April—the most significant two-month change ever recorded. Despite this gloomy outlook, BofA strategists note that “peak fear” isn’t yet reflected in portfolio allocations. Cash holdings stand at 4.8%, below the typical 6% seen during maximum bearish sentiment. The survey included...

Gold prices continued their upward trend on Tuesday, rising 0.3% to $3,219.99 an ounce after hitting an all-time high of $3,245.42 on Monday. This surge comes as investors increasingly turn to gold as a safe-haven asset amid growing concerns about US President Donald Trump’s proposed tariffs, particularly on semiconductors and pharmaceuticals. The Federal Reserve is maintaining a cautious approach until there’s more clarity on tariffs, with traders expecting 83 basis points in rate cuts this year. Gold’s appeal as a hedge against global instability has driven its value up 23% in 2025, with Chinese gold ETF investments recently surpassing US-listed...