Bullion Market Update – June 5, 2025

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.