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Precious Metals Prices

Gold had a small sell-off this week despite the geopolitical risk stemming from the growing Israel and Iran conflict. Gold began trading early Friday morning around $3,371.40/oz.

Silver experienced a slight correction later in the week after its large gains last week and early this week. It began trading early Friday around $35.80/oz.

Platinum demand has surged recently, with China importing 12.6T of the metal in May alone. Prices recently reached their highest level since 2014, currently trading close to $1,260/oz.

Palladium prices softly edged downward this past week with the spot price decreasing ~0.8%, settling around $1,042/oz.

Gold and silver had mild sell-offs for the week with the price of silver declining slightly more than the price of gold per ounce. As of Friday morning, the gold-to-silver ratio was around 94:1.

Market Overview

Israel and Iran Conflict

Over the past week, tensions between Israel and Iran exploded into open warfare following Israel’s launch of a major preemptive air campaign against key Iranian targets, including nuclear enrichment facilities and military infrastructure. The strikes began late on June 12 and were immediately followed by Iranian retaliation, including drone and missile attacks that reached deep into Israeli cities. The campaign, dubbed “Operation Rising Lion” by Israeli officials, has escalated into one of the most dangerous confrontations between the two countries in decades, with ripple effects across global markets and diplomatic channels.

From a more interventionist American perspective, aligned with voices like Ben Shapiro, the Israeli strikes were not only justified but overdue. This view argues that Iran, a state sponsor of terror with a long record of proxy warfare, has been emboldened by Western appeasement and is dangerously close to acquiring nuclear weapons. Allowing Iran to continue unchecked, in this view, would lead to far greater instability down the road. Proponents of this stance point to Iran’s support of Hezbollah and its threats against both Israel and the U.S. as evidence that a decisive blow to its capabilities is necessary. For these commentators, Israel is not only acting in self-defense but also doing what the United States should be willing to do: confront threats before they materialize on a catastrophic scale.

On the other hand, the isolation-leaning side, represented by figures like Tucker Carlson, views the escalation as reckless and contrary to American interests. From this standpoint, the conflict is seen as a regional war that the U.S. should avoid entangling itself in, particularly when American citizens are still recovering from two decades of costly Middle East interventions. Critics question whether this conflict truly poses an existential threat to the U.S. and warn that further involvement could drag the nation into another endless war. They also raise concerns about the humanitarian impact, the risk of global oil supply disruptions, and the potential for broader regional destabilization, particularly if Syria, Lebanon, or Gulf states are pulled into the fray.

Markets responded swiftly. Oil prices surged to above $80 per barrel amid fears of supply disruptions through the Strait of Hormuz, a vital shipping route. This, in turn, has fueled inflation fears. Gold, traditionally a haven, also jumped, briefly crossing $3,400 per ounce, as investors sought shelter from volatility and geopolitical risk. If the conflict deepens or draws in additional players, both commodities could climb even higher.

Precious Metals Prices

Gold kicked off Friday, June 6 at about $3,310 and ended the day on Thursday above $3,400 at $3,461/oz, riding a steady rally boosted by safe-haven flows and a weaker dollar.

Silver followed last week’s massive increase with another increase. It began Friday around $35.98 and climbed to about $36.70 by the end of Thursday: overall a moderately volatile week with a slight upward push.

Platinum began the week around $1,163 on June 6 and surged to roughly $1,282 by today, a volatile upswing to new four-year highs on tight supply and strong demand.

Palladium started Friday near $1,072 and ended Thursday at approximately $1,063, slipping slightly as automotive demand pressures weighed in, though it is still well above recent lows.

Market Overview

The precious metals market tends to be sensitive to both macroeconomic conditions and geopolitical tensions. This past week was marked by rising economic uncertainty and significant geopolitical escalation, particularly in the Middle East.

Israel Strikes Iran

Late Thursday night, Israel launched airstrikes on Iranian nuclear targets, further escalating regional tensions. Israeli defense officials stated they have intelligence indicating that Iran is running a secret nuclear program that is far more advanced than previously believed. They have positioned the strikes as “preemptive.” Iran is expected to respond to the Israeli attack within the next few days. The event has raised major concerns about a potentially uncontrollable escalation. In response, gold and oil futures spiked, while equity futures turned red almost immediately. Volatility increased across commodity and currency markets as investors reacted to the growing uncertainty.

U.S. Secretary of State, Marco Rubio, claimed late Thursday night that the attack was unilaterally launched by Israel. He states clearly that the U.S. was not involved with the strikes in any way.

Inflation Slows, Jobless Claims Rise

On Wednesday morning, June 11, the Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose just 0.1% month-over-month in May, with core CPI also showing a modest 0.2% increase. Year-over-year inflation eased to 3.3%, continuing its decline from earlier 2024 levels. The data came in slightly below market expectations and signaled ongoing disinflation.

This was followed by a rise in weekly jobless claims, released Thursday morning, which hit 242,000, the highest level since October 2023. Continuing claims also edged higher, suggesting further signs of cooling in the labor market.

As expected, the Federal Reserve held its benchmark interest rate steady during its Wednesday afternoon FOMC meeting. However, new projections now indicate only one expected rate cut in 2025, down from three forecasted earlier this year. While Fed Chair Jerome Powell acknowledged progress on inflation, he emphasized the need for additional data before initiating rate cuts. Still, in response to softer economic indicators, market pricing has shifted slightly, with futures markets now reflecting the possibility of a rate cut as early as September.

Precious Metals Prices

Gold had a strong week, rising 2.2%. They closed Thursday at $3,361.82 after briefly surpassing $3,400.00 earlier that morning.

Silver experienced a breakout week, posting daily gains of 2.6% and 4% on two different days. It reached an intraday high above $36 for the first time in over 13 years and closed Thursday at $35.73, marking a weekly gain of 8.3%.

Platinum closed Thursday at $1,086.40, up from $1,060.30 on Friday, May 30th.

Palladium also ended the week higher, closing Thursday at $1,014.00—a 1.7% weekly gain. All four major precious metals finished the week in positive territory.

Silver’s sharp rally led to a narrowing of the gold-to-silver ratio, despite gold’s own weekly increase. The ratio ended Thursday near 94:1, retreating from the 100:1 range where it had hovered for the past several months.

Market Overview

President Trump’s “Big Beautiful Bill”

As of June 5, 2025, President Trump’s “Big Beautiful Bill” has passed in the House of Representatives and is now under review in the Senate. The legislation seeks to make Trump’s 2017 tax cuts permanent while introducing new reductions—including the elimination of taxes on tips and overtime pay. It also designates substantial increases in funding for border security and military defense.

The bill has drawn sharp criticism in recent days from Elon Musk, owner of X and former Special Government Employee under the Trump administration. Musk, who joined the White House to root out government waste, fraud, and abuse, publicly expressed disappointment with the bill’s projected impact on the federal deficit. His concerns have added intensity to an already contentious debate in the Senate. With a slim majority at stake, Republican lawmakers now face the challenge of defending the bill’s political appeal while responding to growing alarm from fiscal conservatives.

According to projections from the Congressional Budget Office (CBO) and independent fiscal analysts, the bill, if enacted in its current form, is expected to increase the federal deficit by an estimated $2.3 trillion over the next decade. This projection reflects both the cost of making the 2017 tax cuts permanent and the introduction of new tax exemptions, including the elimination of federal income tax on tips and overtime. It is important to note that if the bill is not passed, it will effectively enact some of the largest tax hikes in U.S. history due to the 2017 tax cuts set to expire without the bill.

Silver’s Huge Week

Over the last twelve months, gold has risen nearly 44%, while silver is up only 20%. Silver’s outperformance this week may indicate that gold’s higher price is beginning to price out some retail investors, who are now favoring silver. Silver is also experiencing growing industrial demand, particularly in the solar and electronics sectors, which, combined with geopolitical uncertainty, has driven it to its highest price since 2012.

The overall precious metals market benefited this week amid rising geopolitical tensions, persistent inflation, and uncertainty regarding central bank policy paths. Both gold and silver have gained traction in response, seeing historically large increases so far in 2025. Some analysts view the combination of the high gold-to-silver ratio and silver’s strong performance this week as a signal of potential short-term upside for silver prices.

Gold and Silver Prices 

Gold prices experienced modest volatility this week, ending the day on Thursday, May 29, at $3,312.40.  

Silver prices increased by 0.82% from the close on Friday, May 23, to Thursday, May 29, ending the week at $33.37. 

Platinum traded at $1,088.00 at the close on Thursday, reflecting a weekly gain of 0.37%.  

Palladium prices declined slightly over the week, ending Thursday, May 29, at $976.00. 

The gold-to-silver ratio once again hovered around 100:1 this week, closing at 99.28. The ratio has remained consistently within the 90:1–100:1 range in recent months, reinforcing the narrative that silver may be undervalued relative to gold in the current market environment. 

Market Overview 

The precious metals market this week reflected a cautious and mixed environment shaped by a combination of legal, economic, and geopolitical developments. 

U.S. Court Ruling and Political Policy  

On Wednesday, May 28, the U.S. Court of International Trade in Manhattan ruled that President Trump exceeded his authority by imposing broad tariffs on imports from countries with trade surpluses against the United States. The court determined that Trump’s justification—preventing fentanyl from entering the U.S. and rebalancing international trade—did not meet the threshold of an “unusual and extraordinary threat” as required by the International Emergency Economic Powers Act (IEEPA) of 1977. 

The Trump administration immediately appealed the ruling. By the end of the day on Thursday, May 29, the U.S. Court of Appeals for the Federal Circuit issued an emergency administrative stay, temporarily overturning the lower court’s decision. This allows the tariffs to remain in effect while the legal challenge proceeds. 

Despite the legal reversal, U.S. stock markets closed higher on Thursday and showed mixed performance in Friday morning futures trading, indicating that investors are not overly concerned by the news. Analysts noted that while the legal battle adds to ongoing uncertainty around U.S. trade policy, new tariff developments are being received with significantly less market fear than in early April. 

There has also been considerable attention on Trump’s proposed “big, beautiful bill”, a phrase he uses to describe large-scale federal spending legislation, particularly aimed at infrastructure and border security. Economists project the bill would increase federal spending by $1.2 to $1.5 trillion over the next 10 years. The administration has cited tariff revenue, which is still in legal jeopardy, as a key funding mechanism for the proposal. The bill is expected to go to a Senate vote in early June, around the same time the legal process over the tariffs continues. Although a final court ruling is unlikely before the vote, the risk that the tariffs could eventually be ruled unlawful may still factor into the decisions made on Capitol Hill.  

Macro-Economic Data & Central Bank Policy 

On Wednesday, the Federal Reserve released minutes, a detailed record of what was discussed in their most recent policy meeting, from its May 6–7 policy meeting. The document highlighted growing concerns about persistent inflation and the potential for rising unemployment: a stagflation scenario. Policymakers signaled a cautious, wait-and-see approach regarding future interest rate cuts. The Fed’s stance, combined with the uncertainty stemming from the trade court ruling, added to market volatility, including within the precious metals space. 

Gold and Silver Prices 

Gold prices hit a two-week high on May 22 of $3,346.80 and ended Thursday at $3,295.65. 

Silver prices have almost mirrored gold’s upward trajectory, with a weekly high of $33.697, and an ending price on Thursday of $33.05. 

Platinum prices traded at a weekly high on Thursday of $1,089.90 and ended Thursday at $1,083.00. 

Palladium prices traded at a weekly high on Wednesday of $1,055.00 and ended Thursday at $1,047.10 

The gold-to-silver ratio has hovered around 100:1 this past week, closing at 97.80. Bullion investors have been anticipating a reversion of the ratio to its historical mean between 50:1 and 70:1—but it has remained persistently high. 

Market Overview 

The precious metals market was relatively volatile for the week of 5/19–5/22. This was driven by a confluence of geopolitical tensions, fiscal uncertainties, and shifting investor sentiment.  This demand has been largely attributed to growing concern from investors about the U.S. national debt. On May 16, 2025, Moody’s downgraded the U.S. government’s credit rating from Aaa to Aa1, meaning they believe the government’s creditworthiness has weakened. This is largely due to the fear of increasing U.S. national debt, which is reaching the investor market as President Trump’s tax bill is set to go to the Senate for approval after it was passed in the U.S. House of Representatives by one vote. 

It is important to note that the other two main credit rating agencies, Standard & Poor’s Global Ratings and Fitch Ratings, have not downgraded the U.S. national debt since President Trump’s term began. 

The U.S. Treasury had a $16 billion auction of 20-year bonds on May 21, 2025. The bonds were sold at a yield of 5.047%, marking the highest yield since November 2023. When yields rise at an auction like this, it typically means that investors were not eager to buy the bonds, so the U.S. government had to offer higher yields to attract interest. This reflects a lack of confidence in the long-term fiscal direction of the U.S. 

The uncertainty of investors over the past few months, stemming from rising fiscal deficits, the U.S. credit downgrade, global geopolitical tensions, and tariffs, has led investors to take safety in assets such as gold and silver.