Gold Ticks Up as Dollar Loses Steam

The start of this week saw prices for gold futures increase as safe haven demand by investors, particularly from China, grows. The price of silver also increased, with a weaker dollar index favoring the precious metals markets. May silver prices rose to $32.37 while June gold prices hit $3324.60.

An analyst from Saxo Bank argues that gold’s strong retail demand from consumers in China is keeping the precious metal afloat, despite Western speculators’ increased selling. This, the analyst notes, suggests that concern among Chinese citizens about the health of the country’s economy seems to be increasing.

This comes as investors continue to wait on the Fed’s decision on interest rates, with many expecting the Federal Reserve to announce no changes to America’s monetary policy. Since December 2024, the Federal Reserve has maintained its policy rate at 4.25%-4.50%.

Projections from Goldman Sachs expect 3 twenty-five-basis-point rate cuts in July, September, and October, subject to hard data like the labor market, which could further boost gold’s allure.

Market watchers are also watching for signs of a possible tariff ceasefire between China and the United States or any changes to the impending reciprocal tariffs expected to take effect in early July after being delayed for a couple of months.

Over the weekend, President Trump revealed that new trade agreements could be announced shortly, noting that he was personally in control of the process. In a statement, Trump explained that the U.S. was negotiating with various countries, asserting that he was the one to set the deal, not the other way around.

Developments on tariffs include planned pharmaceutical levies to be announced in the coming weeks and 100% levy on movies produced overseas. Speculations show that the U.S. may have made progress on bilateral trade agreements with key partners like South Korea, Japan, and India.

U.S. economic data, including the employment trends index, the ISM report on business services, and U.S. services PMI, is also due for release in a couple of days. Last month’s jobs report showed stronger than expected job growth, with nonfarm payrolls increasing to 177,000. The rate of unemployment remains at 4.2%, which indicates that the labor market remains stable.

On the other hand, the participation rate in the labor force rose to 62.6%.

Meanwhile, prices for Nymex crude oil futures are lower, trading at roughly $57.75 per barrel. Reports show that OPEC has agreed to increase joint production of crude oil come next month.

The upward trajectory manifesting in the market for gold gives companies like Torr Metals Inc. (TSX.V: TMET) an enhanced opportunity to bolster shareholder value over the coming years.

NOTE TO INVESTORS: The latest news and updates relating to Torr Metals Inc. (TSX.V: TMET) are available in the company’s newsroom at https://ibn.fm/TMET

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