Gold and Silver Drop After Soaring Last Week

 

Gold and Silver Pull Back After Last Week’s Run

(Bullion News Network) – Gold and silver prices declined on Monday during a relatively muted trading session. The spot price of gold dipped by around $7 per troy ounce, while silver shed about $0.07/ozt to begin a new week of trading. Monday’s price action slightly favored silver, driving the gold-silver ratio marginally lower. This movement comes on the heels of a major price bump in both metal markets, courtesy of a slew of new tariffs proposed by U.S. President Donald Trump. Gold ended last Friday over $30/ozt higher. Silver saw an even more significant jump, soaring nearly $1.40/ozt higher to $38.41 per troy ounce.

The new tariff announcements included a 50% tariff on copper and a fresh 35% tariff on Canadian goods, both of which are expected to go into effect on August 1st of 2025. Trump also published a series of letters informing other nations of new tariffs on imports. Mark Carney, Canada’s Prime Minister, responded online, saying that the country remains committed to protecting both its economy and its workers. Demand for safe haven assets jumped to end the week after the announcements dropped, driving gold and silver prices sharply higher. 

Copper continues to dominate headlines in the metals market. Last week, Trump announced a 50% tariff on copper imports. The tariff, which will go into effect on August 1st, drove copper prices 13% higher on Tuesday. That’s the biggest one-day gain for the base metal since 1989. The American copper market was especially hard hit by the surprising tariff announcement, with American copper premiums jumping to 138% compared to the global average. Mining companies are working quickly to construct new mines ahead of higher prices. Copper is a vital resource in the building construction sector, and the metal also plays a role in the growing electric vehicle industry.

Platinum group metals also pulled back on Monday after an excellent Friday showing. Platinum gained over $35/ozt Friday before losing $26 on Monday, erasing much of last week’s gains. Palladium’s Friday swing was more dramatic, with the precious metal gaining nearly $60 per ounce before shedding just around $6/ozt on Monday. The price action favored palladium, but platinum maintains a significant lead compared to the more affordable palladium. 

On Tuesday, traders will get a fresh look at consumer prices with the June Consumer Price Index (CPI). Forecasters expect inflation to grow compared to the May reading. The June Producer Price Index (PPI) will become public on Wednesday, followed by fresh jobless claims and U.S. retail sales indexes on Thursday. On Friday, traders will have access to July’s preliminary consumer sentiment reading, which could shed more light on where safe haven demand may be heading. 

These figures could factor into the Fed’s decision when it meets on July 30th. CME FedWatch projects a 5.2% probability that the FOMC will vote to cut rates this month, down from 23% last month. President Trump continues to apply pressure to Federal Reserve Chair Jerome Powell, urging the economist to cut interest rates. Given the role interest rate cut speculation played in gold’s historic 2024 price run, this week’s full slate of economic data reports could impact demand for safe haven assets, including gold.