Pessimism about where the country is headed has been a major driver in the markets for physical gold and silver. For many, Trump seems to represent the “right track.” His election in 2016 led to a couple of quiet years, and demand is subdued once again with Trump as the front-runner.

Whomever the Democrats select to replace Biden, the question will be whether they have significantly better prospects to beat Trump in November. If he or she does, expect U.S. investors to buy more gold and silver.

It is important to note that this commentary is about potential demand for physical bullion products in the U.S. and how that impacts premiums – not the direction of paper prices. There often isn’t much of a connection, at least in the short term.

Any sustained surge in demand for metal in the U.S. will likely result in higher bid and ask premiums for coins, rounds, and bars.

• Tuesday, July 23rd – Existing Home Sales. Home sales are expected to fall in the June report. Affordability and higher mortgage rates are a constraint, as is available inventory.
• Thursday, July 25th – GDP. Economists are expecting second quarter GDP to come in higher than the first quarter. The consensus is for 1.9% growth versus 1.4% in Q1.
• Friday, July 26th – Personal Income & Spending. Income growth is expected to drop from 0.5% in May to 0.4% in June. Spending, on the other hand, is expected to rise slightly – up from 0.2% growth in May to 0.3% last month.

This week’s Market Update was authored by Money Metals Director Clint Siegner.

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