Gold and Silver Industry & Investing News

The gold-silver ratio has reached 100 – meaning you need 100 ounces of silver to buy one ounce of gold. This is far above the 25-year average of 68, signaling that silver is historically undervalued. Why the gap? Gold hit record highs above $3,500 as investors sought safety amid economic uncertainty. Silver lagged behind because it’s not just a precious metal – it’s also widely used in technology and manufacturing, making it vulnerable to trade tensions and economic slowdowns. This creates both risk and opportunity. Silver is more volatile than gold, but it’s facing its fifth straight year of supply...

The Federal Reserve’s preferred inflation measure, the PCE index, is expected to show minimal growth of just 0.1% in April, potentially bringing the annual inflation rate down to 2.2% – close to pre-pandemic levels. While this appears to be good news as the Fed aims to return inflation to 2% or less, concerns remain about the impact of new tariffs and whether inflation expectations have become “unanchored.” A recent court ruling against Trump’s tariff authority offers some hope, but economists warn that rising import prices could reignite inflation, similar to the persistent inflation cycles of the 1970s.

European Central Bank President Christine Lagarde sees an opportunity for the euro to play a bigger role in global finance as confidence in the U.S. dollar wavers. Currently, the dollar dominates as the world’s reserve currency with 60% of global foreign exchange reserves, while the euro holds just 20%. With the dollar index falling over 8% this year amid Trump’s tariff policies and shifting geopolitics, Lagarde believes Europe could strengthen the euro’s position by maintaining open trade, developing deeper capital markets, and defending the rule of law.

Fed Chair Jerome Powell accepted President Trump’s invitation for a White House meeting Thursday, marking their first discussion since Trump returned to office. While they talked about economic conditions, Powell carefully avoided discussing future rate decisions, emphasizing that the Fed makes choices based on data, not politics. The meeting highlights ongoing tensions – Trump has publicly criticized Powell and even explored removing him from office. Press Secretary Karoline Leavitt confirmed Trump privately told Powell he’s making a mistake by not lowering rates, arguing it weakens America’s position against China. Despite the pressure, Powell maintains the economy is stable and the...

Tokyo’s core inflation reached 3.6% in May, marking its highest level in over two years and exceeding the Bank of Japan’s 2% target for three consecutive years. The surge was driven primarily by rising food costs, with rice prices jumping an extraordinary 93.2%. While this inflation pressure supports the case for potential interest rate increases, Japan’s factory output declined in April, creating a challenging balancing act for the central bank as it weighs inflation control against economic growth concerns amid potential U.S. tariff impacts.

Federal Reserve Bank of Dallas President Lorie Logan indicated Thursday that interest rates will likely remain at current levels for an extended period. The Fed is waiting to assess how President Trump’s policies on trade, taxes, and regulations will impact inflation and employment. Logan emphasized that monetary policy is “in a good place” with a strong labor market and inflation gradually returning to target levels. The central bank remains prepared to respond if economic conditions shift.

Germany stores one-third of its 3,352-tonne gold reserves—the world’s second-largest—at the Federal Reserve Bank of New York, a Cold War-era arrangement. Trump’s return to the White House and his confrontational approach to allies and the Fed have sparked German concerns about their gold’s safety in U.S. custody. Key developments include the German Taxpayers Federation formally requesting gold repatriation, citing Trump’s desire to control the Fed. European Parliament member Markus Ferber warned that Trump might develop “creative ideas” about foreign gold reserves. This debate, once limited to fringe groups, has now reached mainstream German media. The Bundesbank insists the New York...

Physical gold demand weakened across Asia this week, particularly in India where rising prices and the end of wedding season reduced buying activity. Indian dealers offered significant discounts of up to $31 per ounce to attract buyers, while Chinese premiums also decreased despite high import volumes. The seasonal slowdown in India coincides with monsoon season, leading jewelers to postpone new purchases as domestic prices hover near 94,900 rupees per 10 grams.

Gold experienced a pullback on Friday, falling 0.5% to $3,300.59 per ounce, with the decline driven primarily by a stronger U.S. dollar that rose 0.2%. This week has seen gold lose 1.7% of its value as markets enter a consolidation phase. The focus is now on the upcoming Personal Consumption Expenditures (PCE) report – the Fed’s preferred inflation gauge – expected to show minimal monthly change at 0.1% and annual inflation at 2.2%. San Francisco Fed President Mary Daly indicated the possibility of two interest rate cuts this year, though the Fed remains cautious about ensuring inflation sustainably reaches its...

Gold prices dropped below $3,300 per ounce this week, heading for a nearly 2% weekly decline as traders wait for important U.S. economic data. The upcoming release of inflation, consumer spending, and wage growth numbers will help investors understand how President Trump’s trade policies are affecting the economy. Technical trading factors also contributed to the decline, with gold failing twice to break above the $3,328 resistance level. Despite the recent drop, gold maintains its appeal as a safe investment amid ongoing trade uncertainties with China and new tariff concerns.