Gold and Silver Industry & Investing News

Richmond Fed President Tom Barkin warned that interest rates might need to go up, not down, to fight inflation. Speaking to a local club in Virginia, he explained that several economic shifts could make inflation harder to control in the future. For years, certain factors helped keep prices stable, but now the economy faces “headwinds” from problems with global supply chains, fewer working-age Americans, and higher government spending on aging populations and defense. While these challenges aren’t certain, Barkin believes the Fed should be careful about cutting rates too quickly. He reminded listeners about the 1970s, when the Fed eased...

On Wednesday, the 10-year Treasury yield dropped below the 3-month yield, creating an “inverted yield curve”—a phenomenon with a strong historical track record of forecasting economic downturns within 12-18 months. The New York Fed monitors this relationship closely, even publishing monthly updates with recession probability estimates. At January’s end, that probability was just 23%, but February’s dramatic yield relationship shift will likely increase these odds. This inversion typically occurs when investors anticipate the Fed will need to cut short-term rates to counter future economic weakness. While the previous inversion in October 2022 hasn’t resulted in a recession after 2½ years,...

Goldman Sachs analysts are forecasting a potential boom for the US dollar that could undermine BRICS’ efforts to reduce dollar dependence. According to strategists Karen Reichgott Fishman and Lexi Kanter, the tariffs expected under Trump’s administration may strengthen the dollar, making long positions on USD particularly attractive for investors. While these protectionist policies could drive inflation, they’re also likely to support US yields, further enhancing the dollar’s appeal. BRICS member nations, which have been actively working to challenge the dollar’s reserve currency status, now face significant headwinds as their local currencies continue to weaken against the USD. The report suggests...

President Trump has reaffirmed his plan to impose 25% tariffs on all goods from Canada and Mexico beginning March 4, though he suggested they might be delayed until April. This announcement comes after temporarily backing off from similar tariff threats earlier this month. The across-the-board tariffs represent Trump’s continued effort to reshape US trade policy, sparking renewed concerns about a potential trade war with America’s closest neighbors.

Inflation is once again intensifying across the US economy, with price increases affecting everything from housing to grocery staples like eggs. This renewed inflationary pressure is evident across numerous economic indicators, including input costs, wage growth, and inflation expectations. The causes mirror those of the initial pandemic inflation surge: supply-demand imbalances and labor market constraints. Additionally, the Trump administration’s planned tariffs and immigration policies are creating significant upside risks to inflation forecasts. Businesses are reporting the highest input costs since 2022, with raw materials like lumber and steel becoming more expensive. Consumer inflation expectations have reached their highest level since...

Major commodity traders like Glencore and Trafigura are rushing to ship copper to the United States following Trump’s order for the Commerce Department to investigate potential tariffs on the metal. This has created a significant price gap, with US copper prices trading up to $1,300 per ton higher than global prices, while shipping costs are only around $300 per ton. The Section 232 investigation will likely take months to complete, giving traders a window to move metal without tariffs and secure substantial profits, though this is disrupting global copper flows and potentially reducing inventory available to top consumer China.

Oil prices recovered on Thursday as supply concerns emerged following President Trump’s decision to cancel U.S. oil major Chevron’s license to operate in Venezuela. Brent crude futures rose 71 cents (0.98%) to $73.24 per barrel, while U.S. West Texas Intermediate crude gained 64 cents (0.93%) to $69.26 by mid-morning trading. Despite this rebound, both benchmarks have declined approximately 4.5% this month and had settled at their lowest levels since December 10 in the previous session. The upward momentum was tempered by developments in Ukraine, where Trump’s involvement in potential peace negotiations could lead to increased Russian oil flows if successful....

The British pound remained stable against the dollar on Thursday, trading at $1.2674 just below Wednesday’s two-month high of $1.2717, despite President Trump’s announcement of potential 25% tariffs on European Union goods. Analysts suggest sterling could outperform other currencies if tariffs are implemented because of the relatively small US-UK trade deficit. The pound is also finding support from expectations of fewer Bank of England rate cuts compared to other central banks like the ECB.

Gold prices are retreating from record highs this week, dropping 2.3% from Monday’s peak to trade near $2,880 an ounce, likely ending an eight-week rally that was the longest since 2020. This pullback comes as US 10-year Treasury yields climbed above 1% on Thursday, reducing the relative attractiveness of non-interest-bearing gold. Despite this correction, bullion continues to benefit from safe-haven demand driven by global market uncertainty surrounding President Trump’s tariff announcements, including a confirmed 25% levy on European Union imports and potential tariffs for Canada and Mexico pending a March 4 deadline. New research suggests Trump’s planned tariffs on Chinese...

The USDA dramatically revised its egg price forecast on Tuesday, now predicting a 41.1% increase in 2025—more than double January’s projected 20% rise. This sharp adjustment comes as bird flu continues to devastate commercial egg farms, with an estimated 18.8 million egg-laying hens affected in January alone. Consumers are already feeling the impact, with January’s retail egg prices jumping 13.8% month-over-month and 53% year-over-year, pushing the national average to $4.95 per dozen. The USDA warns that egg supplies remain “very light to light with little chance for improvement in the near-term.”