Bullion Market Update – June 27, 2025
Precious Metals Prices
Gold opened Monday morning at $3,400.70 and is currently trading around $3,278.30 as of Friday morning on June, 27th. This marks a decrease for gold of ~3.6%.
Silver had an up and down week and is currently trading around $36.00, close to where it started off on Monday morning.
Platinum opened the week trading at $1,261.40 and had a strong week until Thursday, June 26th with a high of $1,440.50. It dropped off heavily though on Friday, currently down over 5.50%.
Palladium began trading this week at $1,053.50 and has since climbed to $1,130.00 for a weekly gain of over 7%.
Gold’s decrease and silvers relatively flat week decreased the gold-to-silver ratio slightly to 91.06. The ratio is still elevated compared to historical norms.
Market Update
Federal Reserve Chair Jerome Powell delivered his semiannual testimony to both the House and Senate, reiterating the central bank’s cautious stance on interest rate policy. Powell has faced increased pressure from the Trump administration due to the Fed’s recent decisions not to cut rates. Powell emphasized that while inflation has cooled in recent months, the Fed remains concerned about the potential inflationary impact of proposed tariffs and other fiscal policies. He defended his decision by underscoring the risks of premature rate cuts, stating that missteps could have long-term consequences. For precious metals, this caution around cutting rates extends the higher interest rate environment, which increases the opportunity cost of holding non-yielding assets like gold and silver, exerting downward pressure on their prices.
Geopolitical tensions in the Middle East have taken a turn in the last week. After several weeks of heightened conflict, a ceasefire agreement between Israel and Iran was brokered midweek. The de-escalation led to a sharp drop in oil prices and a broad rally in risk assets, including equities. Precious metals, which had rallied on war-related fears, saw a pullback as investor demand for safe-haven assets eased. Gold prices dropped nearly 1% following the ceasefire announcement, while silver and platinum also retreated.
In the trade policy arena, the U.S. made modest progress in talks with China, improving sentiment in global markets. However, lingering uncertainty around Trump’s proposed tariff package and threats to reshape the Fed’s leadership kept some investors cautious. Powell again warned that broad tariffs could create fresh inflationary pressures, further complicating monetary policy decisions.
Looking ahead, markets are focused on the upcoming core PCE inflation data, expected to show a modest 0.1% monthly rise. Traders are currently pricing in about 60 basis points of rate cuts before year-end, with the first likely in September. A softer inflation print could support precious metals by strengthening the case for monetary easing, while a surprise to the upside could delay cuts and weigh on prices further.
In short, Powell’s wait-and-see mentality, easing war tensions, and trade ambiguity all played key roles in shaping market expectations. The past week in the metals market has been a tug-of-war between fading safe-haven demand and lingering inflation concerns, leaving gold and silver modestly weaker, yet still sensitive to the next data release.
