Gold and silver prices reached record highs while European stock markets fell due to rising geopolitical tensions. The surge in precious metals, with gold hitting $4,689.39 an ounce and silver reaching $94.08, was a result of investors seeking safe-haven assets amidst concerns over potential new tariffs imposed by the US on eight European countries. This followed US President Donald Trump’s announcement of tariffs on goods from these countries, which sparked fears of a trade war and led to declines in major European indices, particularly in the automotive, tech, and luxury goods sectors. The situation comes as the US Supreme Court is poised to rule on the legality of Trump’s tariff policies, which could further impact market movements and compound existing concerns over trade and global economic growth.
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Gold and silver prices surged to record highs on Monday, driven by escalating geopolitical and economic uncertainties and expectations of U.S. interest rate cuts. Gold reached above $4,600 per ounce, while silver hit a fresh peak as investors sought safe-haven assets amidst the Trump administration’s scrutiny of Federal Reserve Chair Jerome Powell. This rally was also fueled by the anticipation of further rate cuts later in the year, as well as rising geopolitical tensions, including Trump’s response to events in Iran and other international developments. These factors led to strong gains in platinum and palladium as well.
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Central banks globally now hold more gold than US Treasuries, a shift not seen since 1996, signaling a significant global rebalancing. This surge in gold holdings is driven by substantial purchases in recent years, with record-breaking acquisitions in 2024, significantly outpacing previous decades. Gold has become the second most significant foreign exchange reserve asset, surpassing the euro. Despite a recent easing in buying activity, central banks still plan to increase their gold reserves, likely due to concerns about the US dollar’s dominance as the global reserve currency.
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Everyone is pulling their money out of U.S. markets as they diversify away. Maybe permanently. This assertion certainly sparks some thought, doesn’t it?
One of the most immediate red flags seems to be the feeling that the U.S. market is overpriced. The value seems inflated, and when combined with a sense of uncertainty coming from the political landscape, it’s understandable why investors might look elsewhere. The removal of the head of the Bureau of Labor Statistics (BLS) for what some perceive as releasing unbiased numbers creates an environment where trust is eroded. If the data is questioned, the foundation of investment decisions crumbles, and there isn’t a good way to recover from that without creating a great deal of suspicion.… Continue reading
Almost 30% of German companies postpone US investments, survey shows, and this paints a complex picture of international business in a time of economic and political uncertainty. It seems that a significant chunk of German businesses are hitting the pause button on their plans for expansion and investment in the United States. This hesitation could eventually translate into cancelled investments, essentially drying up funding for projects that could have boosted the American economy.
The data indicates a substantial shift in sentiment. Approximately 29% of German companies have reduced their investments, alongside the nearly 30% postponing new ones. When we add the 15% that have cancelled investments outright, we see a large portion of German companies are taking a more cautious approach to the U.S.… Continue reading
President Trump’s executive order doubling steel and aluminum tariffs to 50% temporarily excludes the UK due to a May 2025 US-UK economic prosperity deal. This deal, not yet in effect, aims to eliminate these tariffs entirely but could be revoked if the UK fails to comply with its terms. Until the deal’s parliamentary implementation, UK steel exporters remain subject to the 25% tariff. The UK government is working to finalize the agreement and protect British businesses.
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Wall Street traders have nicknamed President Trump “TACO” (Trump Always Chickens Out), reflecting his pattern of issuing tariff threats, causing market drops, then retreating. This nickname, however, may backfire; one expert predicts Trump will maintain tariffs to counter the perceived insult. Trump’s furious reaction to the nickname underscores its impact and his sensitivity to criticism of his trade tactics. The ongoing legal challenge to his reciprocal tariff policy adds further economic uncertainty.
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Following a phone call with European Commission President Ursula von der Leyen, President Trump has delayed the implementation of 50% tariffs on EU goods from June 1st to July 9th. This postponement allows for further negotiations between the US and the 27-member EU bloc to reach a trade agreement. The delay comes after Trump previously threatened the tariffs, citing stalled talks and describing the EU as difficult. Von der Leyen requested the extension, expressing a commitment to serious negotiations aimed at avoiding a trade war.
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Following June’s announcement of a potential 50% tariff on European goods, President Trump declared he is not currently pursuing a trade agreement with the European Union. However, he indicated a willingness to alter or postpone these tariffs contingent upon European firms committing to establish manufacturing facilities within the United States. This suggests a potential pathway to avoiding the tariffs, albeit one dependent on specific actions from European businesses. The President’s statement leaves the future of US-EU trade relations uncertain.
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President Trump announced a proposed 50% tariff on all European Union imports, effective June 1, 2025, citing stalled trade negotiations and unacceptable trade deficits exceeding $250 billion annually. This decision follows Trump’s recent threats against Apple and reverses a trend of recent trade deal announcements that had calmed investor concerns. Treasury Secretary Bessent hopes the tariff announcement will pressure the EU into more favorable negotiations. The announcement caused immediate negative reactions in both U.S. and European stock markets.
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John Q. Hosedrinker 
Matt Underwood