Gold and Silver Industry & Investing News

Central banks have been slowing their gold purchases recently, with buying dropping 33% quarter-on-quarter in early 2024, partly due to reduced purchases from major buyers like China. However, experts don’t expect this trend to signal a permanent decline. The weakening faith in the U.S. dollar as the primary reserve currency is driving continued interest in gold, with sanctions prompting countries to seek alternatives to dollar assets. Gold has already surpassed the euro to become the second-largest global reserve asset in 2024 and is up over 25% for the year. Despite the recent slowdown, analysts believe ongoing economic uncertainty, inflation concerns,...

Federal Reserve Chair Jerome Powell is maintaining a cautious stance on interest rate cuts ahead of his congressional testimony, despite mounting pressure from President Trump and signs of division within the Fed itself. In his prepared remarks, Powell indicated the Fed will wait to better understand how trade wars affect the economy before adjusting rates, warning that tariffs are likely to push inflation higher and slow economic activity. The Fed has kept rates unchanged for four consecutive meetings, with the last cut occurring in December. This reluctance has frustrated President Trump, who took to Truth Social to urge Republican lawmakers...

Federal Reserve Governor Michelle Bowman signaled Monday that she’s ready to support lowering interest rates as early as the July 29-30 meeting, provided inflation stays contained. Speaking in Prague, Bowman suggested bringing rates closer to “neutral” levels to maintain a healthy job market. Her position echoes Governor Christopher Waller’s Friday comments supporting potential July action. Both Fed officials believe Trump’s tariffs will have limited inflation impact, noting many businesses already stockpiled inventory in anticipation. While President Trump advocates for aggressive 2-percentage-point cuts to reduce government borrowing costs, Fed officials haven’t specified cut sizes. The central bank held rates steady at...

Jerome Powell defended the Federal Reserve’s cautious approach to Congress, explaining why they’re holding interest rates steady at 4.25%-4.5% despite pressure from President Trump. The Fed Chair emphasized that officials need more clarity on how Trump’s evolving tariff policies will impact inflation and economic growth before adjusting rates. Trump criticized Powell on social media, calling him “dumb” and “hardheaded” for not lowering rates, which keep government borrowing costs high. Powell acknowledged that tariffs are likely to increase prices and potentially slow economic activity, but stressed that the actual effects remain uncertain as the administration continues to shift its trade policies....

Oil futures retreated significantly Tuesday, with both Brent and U.S. crude falling approximately 3%, as tensions between Iran and Israel showed signs of easing. The price decline came after President Trump’s warning to Israel and the announcement of a ceasefire, though implementation concerns remain. Oil had gained 10% since mid-June when hostilities escalated, driven by fears of supply disruptions from Iran (which produces 3.3 million barrels daily) and potential closure of the strategic Strait of Hormuz. Analysts note that while the strait’s closure remains unlikely, such an event could push oil prices above $100 per barrel. The International Energy Agency...

China’s Ministry of Industry and Information Technology, along with eight other government departments, has released an ambitious action plan to transform the nation’s gold industry from 2025 to 2027. The strategy focuses on four key pillars: high-end development, intelligent operations, environmental sustainability, and enhanced safety standards. The plan sets specific targets including a 5-10% expansion of gold resources and over 5% growth in gold and silver output. Major technological breakthroughs are expected, with large-scale mining operations (processing 500+ tonnes daily) projected to dominate 70% of the industry. The initiative also prioritizes green mining practices and digital transformation through AI integration....

A cease-fire agreement between Israel and Iran has been reached following 12 days of unprecedented direct conflict between the two nations. The deal, announced by President Trump who helped broker it, has been met with guarded optimism from world leaders. However, concerns about the agreement’s durability emerged quickly, as both countries accused each other of violations shortly after the cease-fire went into effect. International reactions have been measured, with leaders acknowledging both the positive development and the fragility of the situation. President Macron of France noted the situation remains “volatile and unstable,” while Qatar’s prime minister described the cease-fire as...

A survey of 75 central banks shows a major shift away from the US dollar. Following President Trump’s April 2 tariffs, central banks are rapidly diversifying their $5 trillion in reserves. Gold is the biggest winner—40% of banks plan to increase holdings over the next decade, adding to already record purchases. The dollar dropped from first to seventh place in investment preferences, with 70% of banks citing US politics as a deterrent. The euro is rebounding and could reach 25% of reserves by 2030, while China’s yuan is expected to triple its share to 6%. For the first time since...