Gold prices remained relatively stable on Tuesday, with spot gold trading at $3,331.85 per ounce, as investors navigated growing apprehension over U.S. trade policy counterbalanced by rising Treasury yields. The recent announcement of 25% tariffs on Japanese and Korean imports, set for August 1, triggered modest safe-haven inflows, though gains were tempered by strong bond yields (Reuters).
“Traders seem relatively unfazed by Trump’s tariff letters … gold is still just biding its time, waiting for a topside breakout,” said Tim Waterer, KCM Trade’s Chief Market Analyst.
Meanwhile, silver has emerged as a breakout star, climbing to $38.42 per ounce, the highest level in over a decade. According to Comex data, silver prices reached $35.81 on June 5, marking a 13‑year high and a 22% year‑to‑date gain. The rally is being driven by persistent supply deficits and surging industrial demand from sectors like solar, electronics, and electric vehicles (MarketWatch).
Macro strategist Tavi Costa of Crescat Capital recently drew attention to a long-term valuation signal in favor of gold via a post on X (formerly Twitter). He shared a historical chart comparing gold to U.S. equities (measured by the Gold/Dow Jones Industrial Average ratio), suggesting that gold may still be undervalued relative to stocks.
The chart highlights key turning points in the past century, 1929, 1971, 2000, and 2018, where gold was considered historically cheap compared to equities, each followed by significant multi-year rallies in the metal. The ratio appears to be rising once again as of July 2025, indicating renewed momentum.
Historical Echoes: Silver’s 2011 High
Silver’s resurgence has drawn comparisons to its performance in 2011, when it briefly touched $49.50/oz, its all-time intraday high. That year, the average annual price was $35.12, marking a 74% surge from 2010 (Silver Institute). While silver remains below that threshold, structural tailwinds—supply shortfalls, rising solar demand, and dwindling inventories - could continue to support the rally.
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