Precious metals surged in June, with gold reaching a six-year high of just under $1,440.00 and finishing the month up 8.0%. Silver finished June up 4.7%, posting its first monthly increase since January. Platinum and palladium performed well too, finishing up 5.5% and 12.9% respectively.
The first half of June saw a modest rise in precious metals brought on by increasing global growth concerns. The U.S. and China continued to lob threats of new tariffs at each other and weak economic data out of China showed the impact tariffs were already having. The U.S. also threatened tariffs against Mexico in response to its current immigration policy which helped boost gold to a 14-month high of $1,350.00. This global tension coupled with weak jobs data that suggested U.S. growth was slowing forced the Fed’s hand in entertaining the idea of a 2019 rate cut as soon as July. The U.S. dollar plunged and metals, primarily gold, surged amid the Fed’s dovish tone. Gold reached its highest level since 2013 and had its best monthly performance since 2016.
U.S. equities had their best month in decades, propelled upwards by the increasing likelihood of a rate cut in 2019. The Dow rose about 7%, its best monthly performance since 1938 and the S&P 500 and the Nasdaq rose 6.2% and 6.9% respectively.