Gold & Silver Markets Heat Up on Trump, Tariffs, and the Fed

Well, gold just broke out to a new all-time high yesterday, zooming $40 higher for the week now through this Friday morning recording to trade at $2,822 per ounce.

At the same time, silver continues to march upwards, rising nearly 90 cents here on the week to trade at $31.65 per ounce. Gold’s gain on the week is 1.4%, while silver comes in at twice that, seeing a 2.8% increase.

The high drama in the institutional markets for gold and silver – unfolding mostly in the background over the past 45 days – may finally be bleeding out into the mainstream.

Specifically, President Donald Trump's threat to impose import tariffs has led to a mad scramble at the institutional level to transport gold and silver bullion into the United States from all over the world before any potential tariffs are put into place.

A short squeeze could be unfolding at the COMEX. Some traders continue to have difficulty sourcing metal – and are therefore closing out their hedges to avoid getting caught on the wrong side of the trade.

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On Wednesday, an analyst at TD Commodities warned the market is especially underestimating the possibility of a big move in silver, writing "explosive upside convexity in silver markets remains severely underpriced, particularly with few days remaining until the proposed deadline for tariffs for Canada & Mexico."

And then just last night, Trump reiterated his tariff threats, stating that Canada and Mexico will face 25% tariffs on as-yet-undetermined goods – with plans to put them into effect this very weekend. U.S. stock markets haven't seemed to mind the news at all, though, with major indexes trading higher on Friday, along with many commodities and gold.

Meanwhile, Trump has been pounding the table for lower rates and loudly blamed the Federal Reserve on Wednesday for causing all the inflation America has seen in recent years – faulting central bankers for their preoccupation with rolling out discriminatory DEI programs, gender ideology, green energy, and global warming.

Trump's harsh criticisms came on the heels of the Fed's decision on Wednesday to pause on further interest rate cuts, at least for now.

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