Precious metals markets exhibited significant volatility during today's trading session, with both gold and silver retreating from earlier gains despite initial positive momentum driven by policy announcements from the Trump administration.
Trump Tariff Announcement Drives Initial Rally
The precious metals complex initially surged following President Trump's weekend announcement of plans to impose a 30% tariff on most imports from the European Union and Mexico, effective August 1. This development sparked immediate interest among traders seeking traditional safe-haven assets amid escalating trade tensions.
However, the rally proved short-lived as profit-taking emerged and broader market dynamics shifted sentiment. The uncertainty surrounding the scope and implementation of these tariffs has created a complex trading environment for precious metals investors.
Silver Faces Unique Tariff Uncertainty
Silver markets have attracted particular attention as traders grapple with conflicting signals regarding the metal's potential inclusion in upcoming tariff measures. While President Trump has indicated that precious metals would be exempt from taxation, recent developments have cast doubt on this assurance.
The administration's decision to implement blanket taxation on all copper imports has raised questions about silver's exempt status, creating additional uncertainty for market participants. This ambiguity contributed to today's volatility, with silver reaching a new 12-year high of $39.13 before succumbing to profit-taking pressure.
As of 4:00 PM ET, silver was trading at $38.39, representing a decline of $0.55 or 1.41% for the session. Despite today's retreat, the metal has demonstrated remarkable strength over the recent trading period.
Gold Breaks Winning Streak
Gold futures ended their three-day winning streak, declining $18.20 or 0.54% to close at $3,352.10. The metal's weakness was partially attributed to renewed dollar strength, with the ICE Dollar Index rallying 0.25% during the session.
The dollar's recent performance has been particularly noteworthy, with the DXY closing higher in seven of the last nine trading sessions and gaining 1.55% over that period. This dollar strength has created headwinds for gold, though the metal has still managed to post modest gains of $14 or 0.42% during the same timeframe.
The divergent performance between gold and silver becomes apparent when examining their recent trajectories. While gold has gained a modest 0.42% over the past nine trading sessions, silver has substantially outperformed with gains of $2.21 or 6.12% during the same period.
This performance differential reflects silver's dual nature as both a precious metal and an industrial commodity, making it more sensitive to trade policy developments and economic growth expectations.
Bitcoin Reaches New Heights
Cryptocurrency markets provided a stark contrast to precious metals, with Bitcoin establishing a new all-time high of $123,200 before retreating to trade just below the $120,000 threshold at $119,990.
The digital asset's strength has been supported by substantial institutional interest, with Bitcoin ETFs recording $1.2 billion in inflows on Thursday alone—marking the largest single-day influx of 2025. This institutional adoption trend has been building momentum, with QCP Capital reporting that spot Bitcoin ETF flows exceeded $2 billion last week.
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