Gold and Silver Industry & Investing News

Goldman Sachs’ Richard Chambers predicts the dollar will continue to weaken as foreign investors increase their currency hedges due to market volatility. The Bloomberg Dollar Index has fallen over 8% this year—its worst start ever—amid policy uncertainty. Chambers expects reduced foreign demand for US bonds as European investors focus on their home markets, forcing the US to rely more on domestic buyers. Meanwhile, gold emerges as a key beneficiary as governments worldwide increase borrowing.

Gold prices advanced on Thursday, benefiting from a weaker U.S. dollar as markets grappled with uncertainty over Federal Reserve policy direction. Spot gold rose 0.2% to $3,339.38 per ounce, while U.S. gold futures gained 0.3% to $3,352.30. The dollar’s decline made gold more attractive to international buyers, while President Trump’s public criticism of Fed Chair Jerome Powell raised questions about the central bank’s independence. Powell has indicated that Trump’s tariff plans could create persistent inflation, warranting caution on future rate cuts. Market analysts expect gold to remain range-bound between $3,000-$3,500 until there’s more clarity on Fed policy. Traders are closely...

China has opened its first offshore gold vault in Hong Kong through the Shanghai Gold Exchange (SGE), marking the exchange’s first expansion outside mainland China. The new facility will allow trading in Chinese yuan rather than US dollars, supporting China’s efforts to reduce dollar dependence. As the world’s largest gold producer and consumer, China aims to gain more influence over global gold pricing through this strategic move.

The global economic landscape is experiencing a fundamental shift, prompting central banks worldwide to reconsider their traditional investment approaches. OMFIF’s latest Global Public Investor report, surveying 75 central banks managing over $7 trillion in assets, reveals significant changes in reserve management strategies. Key findings show that 96% of reserve managers view US tariffs as a major concern, while over 80% rank geopolitics among their top three investment considerations. This marks a departure from the past decade when central banks primarily sought higher yields through riskier assets. Gold has become the standout performer, with 32% of central banks planning to increase...

Current gold market dynamics show interesting trends despite volatility from tariff discussions. Gold remains a foundational asset for central banks worldwide. The US Treasury holds 8,100 tons of gold across four locations (Fort Knox, NY Fed, Denver Fed, and West Point), valued at $42.22 per ounce on the Fed’s balance sheet, though market value is around $3,000. Gold is unlikely to face tariffs since most imports come from the UK (a trade surplus partner) and Switzerland (which refines 50-70% of global gold). Central banks have been major gold buyers for three consecutive years, purchasing over 1,000 tons annually to diversify...

Since the U.S. abandoned the gold standard in 1971, gold has delivered impressive 8.4% annual returns, nearly matching the 9.2% from global equities. Even more striking, gold has outperformed stocks since 2000, returning 10.1% annually versus 5.9% for equities. Gold’s true value lies in its diversification power – it moves independently from stocks and tends to perform best when equities struggle. During seven major stock market crashes since 1970, gold posted positive returns in six cases, averaging 17% gains. A balanced portfolio of 50% stocks and 50% gold would have outperformed either asset alone with less risk. As governments print...

According to a Defense Intelligence Agency report, US strikes on Iran’s nuclear program achieved far less than publicly claimed by President Trump and Israeli Prime Minister Netanyahu. While B-2 stealth bombers dropped 30,000-pound bunker-busters on the deeply buried Fordo facility, causing entrance collapses and infrastructure damage, the underground facilities survived largely intact. The assessment, based on sources familiar with the intelligence, indicates that Iran anticipated the strikes and moved critical highly enriched uranium out of multiple sites beforehand. With centrifuges mostly operational and only months of delay to their program, experts worry these limited results could actually accelerate Iran’s push...

The Federal Reserve is holding steady on monetary policy as it assesses the economic impact of tariffs, according to Minneapolis Fed President Neel Kashkari. Speaking at an event in Wisconsin, Kashkari acknowledged that recent inflation data has been “quite positive,” with the Fed’s preferred inflation measure dropping to 2.1% in April. However, he emphasized that the central bank needs more time to understand the full effects of tariffs on prices before adjusting interest rates. This cautious stance aligns with Fed Chair Jerome Powell’s recent testimony to Congress, where he indicated no rush to lower rates. Fed officials are currently split...