Precious Metals Soar as Tariff Jitters Return

 

Precious Metals Soar Amid Fresh Tariff Announcements

(Bullion News Network) – Gold cruised to a two-week high on Friday, crossing $3,350 per troy ounce amid another slate of tariff announcements from U.S. President Donald Trump. Silver saw an even larger surge, gaining nearly $1.50/ozt on heightened safe haven demand. This is silver’s highest price since August of 2011. The price action strongly favored silver, driving the gold-silver ratio sharply lower to just over 87:1, the lowest gold-silver ratio of 2025. Demand for copper also skyrocketed this week after Trump announced a 50% tariff on the metal, which is vital for building construction, starting on August 1st of this year.

The main impetus for the surge was a series of new tariff announcements from the White House. Earlier this week, U.S. President Donald Trump announced a new round of import tariffs on multiple U.S. trade partners around the world. Trump also threatened an additional 35% tariff on Canada, a move that spooked American markets and drove the Dow sharply lower on Friday to end the week. The S&P 500 and Nasdaq also slipped on the news, with the former dropping from a fresh record set earlier this week. Gold and silver moved opposite to Wall Street; both precious metals jumped as tariff jitters returned in the United States. Platinum and palladium also ended the week with wins. Platinum crossed $1,400/ozt, while platinum gained even more, jumping $75 to settle at over $1,225/ozt. 

Despite a great day for gold and silver bulls, copper is dominating headlines. American premiums on copper skyrocketed to a record of 138% compared to the global benchmark after President Trump announced a 50% tariff on copper exports earlier this week. The tariff, set to go into effect on August 1st, is part of the administration’s broader objective to revitalize American industry and decrease dependence on foreign commodities. Experts say that the tariff could lead to higher prices in a range of American industries that rely on large amounts of copper.

Meanwhile, markets are preparing for more controversy surrounding the Federal Reserve. Trump continues to criticize Fed Chair Jerome Powell for failing to cut interest rates, and some sources report that the White House may be planning to install a ‘shadow’ chair until Trump is able to pick a replacement for Powell next year. While inflation continues to fall, the FOMC does not yet seem poised to ease monetary policy. CME FedWatch projects only a 6.7% probability that the Fed will vote to cut rates at its July meeting, down from 18.2% last month. Despite fears that Trump’s historic slate of new tariffs would lead to rampant inflation, heightened prices appear not to have materialized, charting an uncertain path for the Federal Reserve. 

In the near term, markets are looking for more clarity on Trump’s newest series of tariffs, including a heightened import fee on Canada. On Thursday, the U.S. leader published his letter to Mark Carney, Canada’s new prime minister:

The United States imposed tariffs on Canada to deal with our nation’s fentanyl crisis, which is caused, in part, by Canada’s failure to stop the drugs from pouring into our country. Instead of working with the United States, Canada retaliated with its own Tariffs.

Carney responded, saying that Canada looks forward to “continuing to work with the United States.” The new tariff is a blanket 35% import fee on all Canadian goods. This tariff will be imposed in addition to the other duties on Canadian imports imposed earlier this year. Trump revised the trade deal deadline to August 1st. Mark Carney said in an X post that the Canadian government will continue to work to defend its economy during negotiations:

Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses. We will continue to do so as we work towards the revised deadline of August 1.

Gold and silver are set to end this week in the green. The gold-silver ratio will close at its lowest of 2025. Platinum and palladium gained ground. In the next few weeks, investors are likely to pay close attention to the copper market and Trump’s new copper tariffs, which could have major impacts on both the copper commodities market and the larger U.S. economy.