Gold and Silver 'Underpinned' by Fed Fears as Trump Wins Trade Deals
Thursday, 7/24/2025 16:54
GOLD and SILVER rallied Thursday from a steep pullback off this week's 5-week and 14-year highs as news of US trade deals with Japan and the European Union was offset by fresh fears of the Trump administration attacking the Federal Reserve's interest-rate independence.
The President will personally inspect the Eccles Building today amid a row over
the $2.5 billion cost of renovating and refurbishing the Fed's HQ.
"Trump's visit is a remarkable symbolic move on Fed independence," says CNBC, "bringing his drumbeat of criticism over Powell's refusal to lower interest rates right to the chairman's doorstep."
"This guy has got to go," said Trump's Commerce Secretary Howard Lutnick to Fox News overnight.
"He should either resign or be replaced...[US interest rates] have got to be cut."
With gold and silver rallying but trading lower for the day, global stock markets rose despite new data saying that manufacturing activity is shrinking again this month, while services sectors are expanding more quickly on July's preliminary S&P data agency PMI surveys.
Washington's longer-term borrowing costs then edged lower as bond prices rose following softer-than-expected US jobless benefit claims data.
With Trump's 1st August trade tariffs deadline fast approaching, the White House on Wednesday announced a US-Japan deal which will cut import tariffs on Japanese autos from the President's unilaterally imposed 25% down to 15%.
The White House then said overnight that it's on the verge of inking a new agreement with Brussels for the 27-nation European trading bloc, too.
"Trump's tough tariff tactics are getting results," says the BBC.
"[But because] the tariff / Fed imbroglios are still feeding uncertainty, gold is well underpinned," says precious metals analyst Rhona O'Connell at Stonex.
"Silver prices are trading above the upper bound of the bullish trend channel from 2023," says a trading note from London bullion clearers ICBC Standard, a division of the Chinese megabank.
"Liquidity conditions continue to favour further upside moves and fragmented global inventory pools add to the constructive backdrop, supporting the potential for another move higher."
Thursday however saw silver prices drop through $39 per Troy ounce after setting a new 14-year high 50 cents above that level yesterday.
Gold meantime sank as low as $3352 in London's bullion market, down 2.5% from Wednesday's
Fed fears and gold ETF-driven price spike, before rallying $20 to show a 0.5% gain for the week so far for US investors.
With the latest Fed independence fears keeping the Dollar down near 3-week lows on its DXY currency index, that saw the Euro price of gold fall as low as €2853, while
the UK gold price in Pounds per ounce fell back through £2500.
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