Gold and Silver Industry & Investing News

The Shanghai Gold Exchange is expanding to Hong Kong with a new vault operated by a Bank of China subsidiary. The People’s Bank of China supports this move to promote yuan-denominated benchmarks and increase China’s influence over commodity pricing. This expansion coincides with record gold prices driven by safe-haven demand amid trade tensions. China, the world’s largest gold consumer, has seen unprecedented trading volumes with heavy retail participation. Established in 2002, the Shanghai Gold Exchange is China’s primary physical gold trading platform. The Hong Kong vault will serve international clients for bullion trading and storage, strengthening Hong Kong’s position in...

Gold hit a two-week high on Tuesday, reaching $3,374.78 per ounce as investors flocked to safe havens following President Trump’s new tariff announcements. The rise comes amid ongoing trade tensions and dollar reserve currency concerns. Having reached a record $3,500.05 last month, analysts predict gold will test these heights again this year. Markets now await Wednesday’s Federal Reserve meeting, where Chair Powell’s comments will be closely watched for signals on potential rate cuts, though no immediate change is expected.

Gold prices have risen by 1.6% to over $3,387 per ounce, primarily driven by increased demand from China as markets reopened after a five-day holiday. The precious metal’s value has increased by more than 25% this year, reaching a record high of $3,500 in April. This growth is attributed to gold’s safe-haven status amid market uncertainty caused by President Trump’s trade policies, Chinese speculative buying, and central bank purchases. Investors are now watching for the Federal Reserve’s upcoming interest rate decision.

Despite warnings from top economists that tariffs could trigger a recession (with Goldman Sachs estimating 45% probability and Apollo’s economist at 90%), stock markets continue to rally. The S&P 500 recently completed its longest winning streak since 2004, erasing most losses that followed Trump’s tariff announcements. Investors appear confident based on strong economic data and expectations that trade tensions will ease. However, economists caution that tariffs, particularly on Chinese imports, could eventually lead to stagflation—rising prices with slowing growth. While consumer confidence surveys show concerns, actual spending remains robust, suggesting the real economic impact of tariffs hasn’t materialized yet.

The Federal Reserve is expected to hold interest rates steady this week despite President Trump’s calls for cuts. This decision is bolstered by April’s strong job growth of 177,000, which demonstrates labor market health. Though inflation is slowly easing, proposed import tariffs could potentially reverse this trend. In a recent NBC interview, Trump stated he won’t fire Chair Powell despite criticizing the Fed’s rate policies. Economic uncertainty persists due to potential White House trade deals that could reshape conditions. With limited economic data expected this week, analysts will focus on jobless claims for any signs of labor market weakness.

Louisiana is considering legislation that would recognize gold and silver as official currency in the state. House Bill 386, introduced by Republican Representative Raymond Crews of Bossier City, defines how precious metals would function as currency and states that the Louisiana State Treasurer would oversee implementation. The bill specifies that gold and silver currency would remain the depositor’s property and couldn’t be used for loans or investments. The legislation is designed to be cost-neutral to Louisiana’s general fund.

India has proposed reciprocal zero tariffs on steel, auto components, and pharmaceuticals for a limited quantity of US imports during recent trade negotiations. This offer aims to accelerate a bilateral trade deal before the end of Trump’s 90-day tariff pause. The US has raised concerns about India’s Quality Control Orders, which it views as non-tariff barriers. India has expressed willingness to reconsider these standards in sectors like medical devices and chemicals.

More Americans are falling behind on their mortgages, with “seriously delinquent” loans (those unpaid for 90+ days) up 14% compared to last year. This has led to the first increase in foreclosure sales in nearly two years. The situation is especially dire for veterans, as a key federal foreclosure-prevention program just ended, putting 60,000 former service members at immediate risk of losing their homes. These challenges come amid an already difficult housing market characterized by high mortgage rates, rising costs, and changing buyer preferences.

According to Goldman Sachs, gold will continue to outshine silver in the investment market. The bank attributes this to three key factors: – strong central bank purchases of gold, – slowing Chinese solar production (which affects silver demand), – and high recession risk. Gold prices have surged nearly 26% this year to a record $3,500 per ounce, driven by geopolitical uncertainty, central bank buying, and increased investment in gold ETFs. Meanwhile, silver remains around $32.40 per ounce, and Goldman doesn’t expect it to catch up to gold’s impressive performance.