Gold and Silver Industry & Investing News

Gold prices have reached historic highs, now trading above inflation-adjusted records from 1980 and significantly exceeding its long-term trend. However, history suggests gold purchased at such elevated prices often delivers poor returns. Currently, gold appears overvalued compared to other commodities, trading at record ratios against oil, silver, and especially platinum. Meanwhile, platinum is trading 25% below its 50-year average and at its cheapest-ever level relative to gold. While gold benefits from economic uncertainty and concerns about the dollar, industrial metals like platinum face challenges from potential economic downturns and the electric vehicle transition, though recent EV slowdowns and supply constraints...

Gold prices have reached historic highs, now trading above inflation-adjusted records from 1980 and significantly exceeding its long-term trend. However, history suggests gold purchased at such elevated prices often delivers poor returns. Currently, gold appears overvalued compared to other commodities, trading at record ratios against oil, silver, and especially platinum. Meanwhile, platinum is trading 25% below its 50-year average and at its cheapest-ever level relative to gold. While gold benefits from economic uncertainty and concerns about the dollar, industrial metals like platinum face challenges from potential economic downturns and the electric vehicle transition, though recent EV slowdowns and supply constraints...

China’s Commerce Ministry has revealed it’s considering a U.S. proposal to discuss President Trump’s 145% tariffs, though Beijing warns against using talks for “coercion and extortion.” This development comes after Trump claimed discussions were already happening, which China had denied. The growing trade dispute has seen both countries implement punishing tariffs—145% from the U.S. and 125% from China—that analysts say could effectively halt trade between the world’s two largest economies. The timing is particularly challenging for China, which faces deflation, slow economic growth, and a property crisis. Despite public resistance, China has quietly exempted certain U.S. products from its retaliatory...

Silver markets remain tight as supply falls short of demand for the fourth straight year. Analyst Daniel Ghali suggests we’re in the final phase of the “silver squeeze,” with history showing potential for rapid price increases—previously, when silver broke above $35/oz, it reached nearly $50/oz in less than six weeks. The rising gold-to-silver ratio reflects gold’s strength rather than silver’s weakness. Key indicators supporting potential price increases include lease rates above 5% (signaling physical market tightness) and underpositioned discretionary traders. Combined with scarce liquidity, these conditions create what analysts call “substantial upside convexity.” Growing industrial demand from renewable energy, electronics,...

Gold prices increased by 0.8% on Friday due to bargain hunting, reaching $3,267.56 per ounce ahead of the U.S. non-farm payrolls report. Despite this daily gain, gold is down 1.5% for the week, marking its second consecutive weekly decline. Improved U.S.-China trade relations have increased risk appetite, reducing demand for gold as a safe-haven asset. However, analysts remain optimistic about gold’s long-term outlook, citing central bank buying, investment demand, and dedollarization trends as supportive factors.

Treasury Secretary Scott Bessent stated that the bond market is signaling the Federal Reserve should cut interest rates, pointing to two-year Treasury rates falling below the Fed’s benchmark rate. While traders don’t expect a rate cut at the May meeting, they anticipate cuts beginning in June. President Trump has repeatedly criticized Fed Chairman Jerome Powell and called for lower interest rates, despite recently claiming he has “no intention” of firing Powell.

McDonald’s missed Wall Street expectations in its first quarter earnings report, with revenue falling 3% compared to last year. The company saw a 3.6% drop in US same-store sales, as fewer customers visited its restaurants. According to CEO Chris Kempczinski, visits from low-income consumers fell “nearly double digits” and middle-income customer traffic declined almost as much, while high-income customer visits remained stable. The CEO pointed to the “cumulative impact of inflation” and economic anxiety affecting lower and middle-income consumers. An analyst noted these results weren’t surprising given the ongoing weakness among McDonald’s core lower-income customer base.

Gold’s recent price consolidation follows an investment-driven rally sparked by concerns over President Trump’s trade policies. Though prices have dropped 6.1% from their April peak, they’re still up 30% since Trump’s election. Q1 2025 saw gold investment flows increase 170% year-over-year, with ETF demand reversing from net selling to strong buying. Meanwhile, traditional demand drivers weakened, with jewelry fabrication falling 19% and central bank purchases down 21%. The market now questions whether this rally will continue or has run its course, as some early signs show investment demand flattening. Gold’s future performance likely depends on further developments in trade tensions,...

The Japanese yen fell after the Bank of Japan kept interest rates unchanged and lowered economic growth forecasts due to US tariffs. The BOJ pushed back its inflation target timeline by about a year, with Governor Ueda stating there’s no rush to raise rates. Meanwhile, the US dollar stabilized against most currencies after earlier losses related to Trump’s tariff threats. Markets are now awaiting US jobs data on Friday while watching for potential cooling in trade tensions, as Trump has suggested possible deals with several countries including China.