Editor’s Note
This article highlights the recent downturn in precious metals, driven by shifting market dynamics. As optimism in global trade and a robust U.S. dollar dampen safe-haven appeal, gold and silver face additional pressure from monetary policy and rising yields. Notably, demand in China is diverging, with investment interest rising even as overall consumption declines.
- Gold and silver extend losses as global trade optimism and a stronger US dollar reduce demand for safe-haven assets.
- Expectations of the Fed holding rates steady and higher real yields continue to pressure non-yielding assets like gold and silver.
- Gold consumption in China fell 3.5% in the first half of 2025, with jewelry demand down 26% and investment demand up 24%.
Gold and silver extended their losses on Monday as improving global trade sentiment and a stronger US dollar continued to erode demand for safe-haven assets. Market optimism was bolstered by the completion of the US-Japan trade deal and reported progress towards a broader agreement with the European Union.
The shift in tone has increased investors’ appetite for risk, thereby weakening the appeal of non-yielding assets like gold.
Gold and silver are also pressured by the Federal Reserve’s policy stance. With the central bank expected to keep rates unchanged this week, investors are focusing on the institution’s future guidance.