Gold and Silver See Weekly Gains Despite Trade Optimism
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Last week, gold declined while U.S. equities saw gains, as trade tensions appeared to ease between the U.S. and several trading partners. Although this week’s economic calendar was relatively light, investors remained focused on the two-day Fed policy meeting beginning Tuesday, as well as ongoing trade developments.
On Monday, traders reacted to comments from President Trump suggesting a potential 100% tariff on foreign-made films. Stocks slipped in response (S&P -0.6%, Dow -0.3%, Nasdaq -0.8%), snapping their longest winning streak in two decades. As tariff uncertainty rattled equities and pushed the dollar index lower, gold rebounded with a nearly 3% gain, closing at $3,376 and erasing the prior week’s losses.
Equities fell again on Tuesday as the Fed kicked off its policy meeting. While markets were nearly certain that interest rates would remain unchanged, investors remained uncertain about the Fed’s outlook on the economic effects of tariffs. Meanwhile, gold climbed to a two-week high near $3,391, supported by trade concerns and continued dollar weakness. Silver, however, was little changed, ending the session at $33.07.
As expected, Fed Chair Powell announced Wednesday that rates would remain unchanged at 4.25%–4.50%. Markets exhaled after Powell’s press conference, where he adopted a “wait and see” approach regarding the economic impact of broad tariffs and the ongoing trade dispute with China.
Powell also signaled caution toward any potential rate cuts, noting that more time would be needed to evaluate the uncertainty surrounding tariffs. This stance supported the dollar and pressured both gold and silver. Despite a 0.6% rise in the dollar index, geopolitical tensions between India and Pakistan helped limit the downside, with gold and silver ending modestly lower at $3,374 and $32.83, respectively.
On Thursday, gold extended losses from the previous session following President Trump’s announcement of a framework for a U.S.–U.K. trade deal. Market sentiment further improved on reports that the U.S. and China were preparing to begin preliminary talks in Switzerland.
Gold tumbled on the back of easing trade tensions, shedding 1% to close at $3,313, while silver approached a one-week low of $32.28. As metals declined, trade optimism lifted Wall Street, with the Nasdaq leading gains among the major indexes, rising more than 1%.
Despite improving sentiment, equities traded slightly lower this morning as investors looked ahead to the weekend’s trade talks between the U.S. and China. Still, U.S. markets appear poised to notch another winning week. At the time of writing, the Nasdaq is tracking a 0.58% weekly gain, while the S&P 500 and Dow are eyeing respective gains of 0.09% and 0.19%.
This morning, gold was supported by a 0.3% decline in the dollar index and continued uncertainty surrounding U.S.–China trade talks. The yellow metal rose more than 1%, setting up for a 2.3% weekly gain at $3,338. Silver is also on track for a 0.5% weekly increase, trading at $32.79 an ounce.
