Bullion Market Update – June 12, 2025

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.