Gold and silver are strong in Wednesday morning trading on a weakened dollar and slumping Treasury yields, with DG spot gold back near $3400 an ounce. The yellow metal is also getting support from the fast-approaching August 1 U.S. tariff deadline.
U.S. Commerce Secretary Howard Lutnick told CBS News on Sunday that the deadline for a tariff on the European Union is fixed. Lutnick said he was confident a trade deal could be struck with the EU, but without a deal, the 30% baseline tariff will kick in August 1. Last-ditch talks are ongoing, with the EU bloc hoping it could strike a similar pact to the U.K. that includes a 10% baseline tariff.
Investors are still closely watching the fate of U.S. Fed Chair Powell. On Sunday, President Trump disputed the Wall Street Journal report that Secretary Bessent had talking the president out of firing Powell. Removing Powell before his term is up, which would be an unprecedented move, would likely trigger a legal clash that could wind up at the U.S. Supreme Court.
August gold futures rose 0.65% Friday to settle at $3,336.70 an ounce on Comex, while the front-month contract slid 0.8% in the first two days of last week. Bullion slipped 0.2% in June after losing 0.1% in May and increasing 5.4% in April. It’s up 26% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The August contract is currently up $53.30 (+1.59%) an ounce to $3411.60 and the DG spot price is $3398.20.
Upcoming U.S. economic news this week includes opening remarks from Fed Chair Powell at a banking conference Tuesday morning, the release of existing homes sales for June on Wednesday morning, and Thursday morning brings initial jobless claims for July and June’s new home sales.
Most investors are still betting that the Fed will begin rate cuts at its September meeting, not next week’s meeting, according to the CME FedWatch Tool. The Fed kept interest rates unchanged at 4.25% to 4.50% in June, though policymakers signaled that the central bank is still factoring two interest rate cuts this year.
The Fed reduced rates three times in 2024 but has held them steady this year. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year.
On Friday, front-month silver futures settle at $38.288 an ounce on Comex, and the most-active September contract declined 2.2% in the first two days of last week. Silver increased 9.5% in June after adding 0.6% in May and dropping 5.2% in April. It rose 21% in 2024. Currently, the September contract is up $0.876 (+2.28%) an ounce to $39.340 and the DG spot price is $38.87.
Spot palladium fell 1.81% Friday to $1,265.50 an ounce but is up 4.42% so far this week. Palladium surged 14% last month after advancing 2.8% in May and falling 4.9% in April. Palladium dropped 17% last year. Currently, the DG spot price is up $7.00 to $1283.00.
Spot platinum slipped 1.59% Friday to $1,445.70 an ounce, but was up 6.92% for the week. It climbed 27% last month after gaining 8.6% in May and retreating 3.1% in April. Platinum lost 8.4% in 2024. Currently, the DG spot price is up $41.10 an ounce to $1459.70.
Disclaimer: This editorial has been prepared by Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or a recommendation regarding any particular security, commodity, or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities, or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand, and accept this disclaimer.
