Video News/Digging Deep

Gold is trading above $3,550, and silver is pushing $41.50, but what is really driving the precious metals market? Christopher Ecclestone, Principal and Mining Strategist at Hallgarten & Company, explained why uncertainty and politics are outweighing Fed policy, speaking on Kitco Mining’s Digging Deep. “Most of the Trump tariff measures are inflationary. You can’t get around it,”. If Jerome Powell moves to cut rates in September, Ecclestone argues the impact on gold will be limited: “It doesn’t take away any of the uncertainty. It doesn’t take away any of the global tensions at the moment.” The top gold producers have reported record free cash flow, but Ecclestone warns about discipline. With “big cash piles… building up these gold companies,” he says investors should be cautious: “If you can’t buy anything cheap or accretive, then the best thing to do is to give the money back to the shareholders.” On silver, Ecclestone’s view is blunt: “they’re mining the markets rather than mining the metals.” He also dismissed Washington’s decision to classify silver as a critical mineral: “I think it’s just a joke.” Looking ahead to Beaver Creek and the Denver Gold Show, Ecclestone cautions that the sector is at risk of losing focus: “It’s like decadence. It’s decadence.”