Gold and Silver Down During Wall Street Slide

 

Gold and Silver Down As Wall Street Slides

(Bullion News Network) – Gold and silver both logged a third consecutive loss today, with the price action slightly favoring gold to drive the gold-silver ratio marginally higher. The spot price of gold pulled back just over $15 per troy ounce, while silver prices dropped $0.25/ozt. Wall Street pulled back on Wednesday as well. The S&P 500, Nasdaq, and Dow all pulled back during a volatile day ahead of a much-anticipated Nvidia earnings call. Meanwhile, markets might be showing a bit of resistance to the Trump-fueled swings that dominated Q1 2025. 

President Trump was asked on Wednesday about the “TACO” meme, an acronym making rounds on Wall Street which stands for “Trump Always Chickens Out.” The phrase was first referenced in an article by the Financial Times, and it may provide a bit of insight into how traders have managed to navigate a news cycle dominated by aggressive economic policy shifts and subsequent course reversals. Trump bristled at the reference, which he called “the nastiest question.” The American leader argued that his choice to back down from his February tariff threats was actually part of a larger negotiating tactic. Traders on Wall Street may be taking the president’s rapid policy swings in stride, though. 

CNN’s Fear and Greed Index maintains that markets are being motivated primarily by greed. Safe haven demand remains elevated, although the difference in returns between stocks and bonds is lower than its May 16th peak, which was a recent high. Market momentum is still in “extreme fear” territory, according to the index, but momentum appears to be recovering compared to the significant dip in March. Safe haven demand for gold and silver may be declining, analysts say, amid increasing optimism surrounding American trade. 

Geopolitical uncertainty remains a major price motivator, particularly for gold. Earlier this week, Russia launched its largest-ever air strike and drone attack on Kyiv. Trump criticized Putin following the attack, calling the Russian president “crazy” before saying that he may be “playing with fire.” Meanwhile, NATO has stepped up its fortifications, with plans in place for Germany to increase its brigade contribution to the alliance as the Russia-Ukraine war rages on. In the Middle East, Israeli Prime Minister Benjamin Netanyahu claims that the IDF has killed Mohammed Sinwar, a major leader in the Hamas military force and brother of Yahya Sinwar, who was assassinated last October.

Today’s relatively muted price action in the precious metals market precedes several major economic data reports scheduled for release on Thursday and Friday. Thursday will see the release of the U.S. GDP (first revision). Following the first declining GDP reading in years during Q1, this report could prove important for traders looking to assess the trajectory of the U.S. economy. Friday’s April Personal Consumption Expenditures (PCE) index will give traders fresh insight into consumer prices, which are slated to be a major topic of discussion when the FOMC meets again in June. The week will end with another consumer sentiment reading, this time for May. This report, combined with the GDP and inflation readings, should give traders a fresh look into the trajectory of the American economy.