Fork in the yellow brick road?
Gold is up by 20.2% after President Trump’s first 100 days in office. The metal’s prices have risen in each of the first four months of 2025. The increase in demand for the safe haven metal is a result of many converging issues including trade turmoil, unpredictable U.S. policy announcements, geopolitical tensions, concerns about recession and inflation.
U.S. Bonds have become less reliable while the huge stock market swings scare off investors and the dollar has dropped as stocks have dropped. Uncertainty has led to gold futures price up approximately 26% year-to-date. Investors can buy gold coins, bars or jewelry or attempt to buy mutual funds or stocks in mining companies. Futures contracts and options provide traders and investors a method of owning gold without the risk of taking physical delivery or scams associated with disreputable marketing companies.
Silver has not risen as much as gold and provides a much cheaper alternative for those who cannot afford current lofty gold prices. Gold did drop as the week ended on hopes that tariffs might ease and trade agreements with India, Japan and South Korea might be on the horizon as talks with China also seem more likely.
By midday Friday, gold for delivery in June was $3,240 per ounce, which was down $40 for the week.
No sugar highs in the market
Sugar prices have fallen dramatically as demand has weakened. At the same time, forecasts for large crops in Brazil, Thailand and India have kept prices down. Crude oil prices have been low, leading to sugar mills diverting more cane crushing to sugar production rather than ethanol, thus boosting sugar supplies. Though weather is a chief influencer in sugar pricing, prices also are adversely affected by tariff battles. Robert F. Kennedy Jr., secretary of health and human services, didn’t help demand this week labelling sugar as “poison” causing such maladies as diabetes, obesity and heart disease. By Friday’s close, sugar futures were down more than 5% for the week.
Grains flat, crude sliding lower
Grains and row crops remained range-bound all week while crude oil continued lower, the biggest loser of the week.
CME midday prices — Price per bushel: July Soybeans, $10.60; July Corn, $4.71; July Wheat, $5.42. June Livestock per 100 pounds: Cattle, $211.50; Hogs, $99.50. Metals per troy ounce: June Gold, $3,235; July Silver, $32.28. July Copper per pound: $4.66. June Crude oil per barrel: $58.15. The June S&P futures contract is trading at 5716.00.
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