Blanchard Index

Exclusive Precious Metals Market Outlook and Recommendations

Index updated June 4, 2025

Blanchard's Monthly Index

The Blanchard Monthly Index is a roll-up of industry news and economic trends affecting the precious metals market and trading world.

Check back each month for insights and commentary from our leading experts and contributors.

High: — | Low: — | Current: —

The Blanchard Economic Report

Market Movers

  • Precious Metals

Gold climbed to a three-week high as the U.S. dollar weakened. Rising trade and geopolitical tensions boosted gold to $3,361 an ounce. Precious metals typically climb during times of economic and military upheaval.

President Trump doubled tariffs on steel and aluminum to 50% in an effort to protect steel and aluminum workers. A second round of Russia-Ukraine peace talks ended without a ceasefire or major breakthrough. Investors swiftly bought the recent gold dip to the $3,270 area in late May. Silver climbed to a fresh 2025 high at $34.53.

  • Stocks

The U.S. stock market traded quietly following news that private sector hiring hit its lowest level in over two years. Private ADP payrolls increased only 37,000 in May, significantly lower than the 110,000 consensus estimate from economists. Tariff uncertainty and high interest rates are seen as weighing on job growth, economists say. Gold benefits during times of economic weakness, recession, and uncertainty.

Technology stock strength boosted the broader stock market in recent days as traders shrugged off worries about the economy for now. Popular chip-maker Nvidia rose 3%, eclipsing Microsoft to become the world’s most valuable public company.

  • Washington Policy

The Senate is debating President Trump’s “One Big Beautiful Bill” Act. The House of Representatives passed the multi-trillion dollar piece of legislation by a razor-thin vote. The bill addresses the Administration’s tax, immigration, defense and energy priorities. Some pushback is seen by a small group of Senate Republicans who say they will not support the legislation as it increases the national debt. Gold has gained ground in recent weeks amid concerns over the rising U.S. national debt.

In the News

This Is How Much Your Home Is Worth in Gold—as Florida Recognizes 2 Precious Metals as Legal Tender

“Gov. Ron DeSantis on May 27 signed a bill into law to recognize gold and silver coins in payments in the Sunshine State, making Florida one of a dozen states to move in that direction, including Louisiana, Texas, and Utah.” Realtor.com, June 4, 2025

Goldman Urges Investors to Buy Gold and Oil as Long-Term Hedges

“During any 12-month period when real returns were negative for both stocks and bonds, either oil or gold have delivered positive real returns… The analysts, citing historical data, said 60/40 portfolio holders targeting an average annual return of 8.7% have been able to reduce risk from about 10% to just under 7% through adding gold and oil.” Bloomberg, May 28, 2025

Market Snapshot

Gold/Silver ratio: 99 oz. silver = 1 oz. gold

How to use it: This ratio reveals the number of ounces needed to buy one ounce of gold, and it measures the relative value of these two metals.

  • A ratio higher than 80:1 signals that silver is undervalued relative to gold.
  • A ratio below 40:1 suggests silver is overvalued. Market Performance Year-To Date
  • Gold: up 25%
  • Platinum up 17%
  • Silver: up 16%
  • S&P 500: up 1.79%

 

Short-term Trend (using 20-day moving average)

  • Gold: Up
  • Silver: Up
  • S&P 500: Up

 

Long-term Trend (using 200-day moving average)

  • Gold: Up
  • Silver: Up
  • S&P 500: Up

 

Monetary Policy

  • Fed funds rate: 4.25-4.50%
  • Next Fed meeting: June 17-18