Gold and Silver Gain as Wall Street Sets Record Highs

 

Gold and Silver Gain Amid Stellar Wall Street Performance

(Bullion News Network) – Gold regained a bit of ground on Monday, adding nearly $20 per troy ounce to its spot price after a large drop last Friday. The precious metal lost over $50/ozt on Friday as traders eyed a fresh U.S.-China trade deal with optimism. Although today saw a moderate rebound following Friday’s drop, the spot price of gold remains $60 lower than its closing price from last Monday. Silver also notched a marginal price increase after losing ground last week, but the precious metal gained less than $0.20/ozt. The lopsided price action favored gold, driving the gold-silver ratio nearly 0.40 points higher.

A weakening U.S. dollar may be behind the marginal surge in safe haven asset prices. According to the Financial Times, the United States dollar has lost more than 10% of its value so far in 2025, the worst performance since the end of the gold standard in 1973 under President Richard Nixon. Adding to the market uncertainty, the U.S. Senate is currently debating the so-called “Big, Beautiful Bill,” a large GOP spending bill that opponents say would add $3.3 trillion to the total United States national debt. 

Wall Street seemed unshaken by the large spending bill and declining USD readings. Both the S&P 500 and Nasdaq set fresh records by market close, while the Dow Jones jumped another 275 points. Traders appear confident that U.S. President Donald Trump will secure favorable trade deals with the country’s allies after levying and subsequently pausing a historic slate of tariffs earlier this year. Last Friday evening, President Trump announced on Twitter that the U.S. and Canada will cease trade negotiations following a disagreement over Canada’s taxes on American technology exports. Canada rescinded the technology tax, leading the two countries to resume talks last night. 

Investors are likely also optimistic about the prospects of a fresh trade deal between the United States and China. The world’s two largest economies have been locked in a trade war since Trump’s “Liberation Day” tariffs, which were announced in February. Last week, American markets surged after the White House announced a new trade agreement between the two countries, which was later confirmed by Chinese officials. Although the details of this agreement are not yet clear, American investors are hopeful that the deal may help avoid a potentially costly and prolonged trade war. 

Precious metals dropped last week amid a retraction in safe haven demand. Along with the announcement of a much-anticipated U.S.-China trade deal, gold futures retreated on Friday after the Iran-Israel ceasefire lasted for another day. Earlier in June, flaring tensions between the two countries sparked fears that the conflict would turn into a larger regional war. Shortly after a major American strike on Iranian nuclear facilities on June 21st, Iran and Israel agreed to a U.S.-backed ceasefire. The ceasefire continued to hold today, leading to another drop in demand for safe haven assets, including gold. 

Tomorrow morning, Federal Reserve Chair Jerome Powell will deliver a speech that could give traders more insight into where interest rates may be heading. Powell continues to face criticism from President Trump, who has repeatedly urged the economist to cut interest rates. Gold prices tend to thrive in low-rate environments, so investors should expect Powell’s speech to be the object of extensive speculation. 

Gold and silver ended Monday in the green, but both metals remain down from last Thursday’s closing price.