Market Update

Dear reader, welcome to the latest GoldRepublic newsletter! In just five minutes, we’ll bring you fully up to date with the current precious metal prices and the most relevant news affecting your precious metal investments. Don’t miss these valuable insights!

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1. Ceasefire Between the United States and Iran Under Pressure Again

​The fragile ceasefire between the United States and Iran is once again under significant pressure. Over the past week, several military incidents occurred, involving countries such as Bahrain and Kuwait.

The United States reported attacks on American targets after it had struck an empty oil tanker en route to Iran. Iran subsequently responded with missile and drone attacks on U.S. military bases in the region. At least one person was killed during an attack on Kuwait Airport.

Although both sides officially continue to speak of negotiations, these incidents highlight how fragile the situation remains. A lasting solution still appears to be a long way off.​

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2. Israel Also Complicates a Resolution

​Tensions escalated further due to developments in Lebanon. Israel intensified its operations against Hezbollah and threatened to target parts of Beirut.

Iran responded angrily and once again threatened stricter restrictions on shipping through the Strait of Hormuz. Statements regarding possible actions around the Bab el-Mandeb Strait also added to nervousness in energy markets.

Notably, Trump openly expressed frustration with the stance of the Israeli government. According to reports, he delivered a stern message to Prime Minister Netanyahu. This underscores how complex the geopolitical landscape has become.​

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3. Oil Prices Rise Again

​The latest escalation immediately pushed oil prices higher. Investors fear that a prolonged conflict could once again disrupt global energy supplies.

Equity markets reacted negatively, while bond yields continued to rise. This reflects the same pattern seen in recent months: geopolitical uncertainty leads to higher energy prices, rising inflation expectations, and increased pressure on financial markets.

For central banks, this makes policymaking even more challenging.

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4. U.S. Economy Continues to Show Mixed Signals

Despite all the uncertainty, the U.S. economy remains surprisingly resilient. The services sector expanded more strongly than expected in May. The ISM index rose to 54.5, its highest level in three months.

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New orders and overall economic activity continued to improve, suggesting that consumers are still willing to spend. At the same time, business costs are rising sharply. The survey’s price index even reached its highest level since 2022.

As a result, many companies ultimately face a choice between absorbing higher costs themselves or passing them on to consumers.

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5. French Economy Contracts Slightly

The French economy had a difficult start to the year in the first quarter. Household consumption declined by 0.2%, while business investment fell by 0.4%. Foreign trade also weighed on growth, as exports decreased by 3.5%.

According to French Finance Minister Roland Lescure, political uncertainty surrounding the delayed budget played an important role. Both businesses and consumers postponed investments and major expenditures while awaiting greater clarity on economic policy.

6. Inflation Continues to Rise in Europe

Inflation in the euro area increased from 3.0% to 3.2% in May. Core inflation also came in higher than expected. Higher energy costs and rising services prices appear to be driving renewed upward pressure.

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The timing is noteworthy. The inflation figures were released shortly before the next European Central Bank meeting and reinforce expectations that an interest rate hike has become almost unavoidable. The debate now focuses primarily on how many additional rate increases may follow later this year.