Sweet . Bring on some news Tim . Gold and Silver
After a period of consolidation, the precious metals—both gold and silver—have firmed up, snapping back into a position of strength. Silver is now solidly back above the $30 level (a mid-session 30-minute intraday silver chart snapshot on Wednesday, July 3).
Those with a technical bias say this price action represents a clear breakout.
Talk of a potential Trump victory has raised concerns about a renewed trade war between the U.S. and China, a row that could trigger multiple geopolitical /economic shocks and a rush into the precious metal - Trump 2.0 could drive global investors to gold, both silver and gold prices will benefit from trade wars – Heraeus.
Precious metals analysts at Heraeus: "While the Biden administration preserved many of Trump's China tariffs and raised tariffs on only a small basket of Chinese cleantech imports, a second Trump administration could escalate the trade war unprecedentedly. Trump has proposed two significant trade policy agendas: imposing a 10% across-the-board tariff on all imports from all countries and imposing tariffs of 60% or more on all Chinese imports."
Earlier today, both metals surged higher after the Institute for Supply Management said its Services Purchasing Managers Index dropped to 48.8% in June, compared to May’s reading of 53.8%. Analysts expected a less dramatic slump (to 52.6%) - Gold prices test fresh session highs as ISM Services PMI drops to 48.8.