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Gold Surpasses Euro in Reserves

Gold has surpassed the euro to become the world’s second-largest reserve asset by market value, according to a new report from the European Central Bank. At the end of 2024, gold accounted for approximately 20 percent of global official reserves—comprising both foreign exchange and gold holdings—edging out the euro’s 16 percent share. The shift was propelled by aggressive central bank accumulation and record-breaking gold prices, the ECB said.

Central banks purchased more than 1,000 metric tons of gold for the third consecutive year in 2024, a pace twice the average annual level of the previous decade. This buying spree pushed global central bank gold holdings to 36,000 tons, nearing the all-time high of 38,000 tons set in 1965 during the Bretton Woods era. Major buyers included Poland, Turkey, India, China, and Azerbaijan’s State Oil Fund.

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What’s going on?

• Audit Finds Feds Paid ArriveCan Contractor Even With “Little To No Evidence” Of Work (theDeepDive)

• Trump says U.S.-China trade deal for rare earth minerals is ‘done’ (Globe)

• Trump Negotiates Deal With China… Or Did He? (theDeepDive)

• Pentagon launches review of Aukus nuclear submarine deal (FT)

• Western Canada Oil Sands Output Outstrips Pipelines Again as 2027 Crunch Looms (theDeepDive)

• US Makes Export Controls Negotiable as Part of China Trade Talks (Bloomberg)

• Syria Nears End of 14-Year Banking Isolation (theDeepDive)

• China Puts Six-Month Limit on Its Ease of Rare-Earth Export Licenses (WSJ)

• Second Cup Company Files for Creditor Protection — But It’s NOT the Canadian Chain You Know (theDeepDive)

• US ocean imports plunged in May on 145% tariffs on China (Reuters)

• Platinum Jumps to Four-Year High Amid Million-Ounce Supply Shortfall (theDeepDive)

• Elon Musk says he ‘regrets some’ of his attacks on Donald Trump (FT)

What’s the latest?

• Dollarama: Dollarama’s Q1 sales rose 8.2% to $1.52B, with profit up 27% despite trade uncertainty. Execs warned consumers remain fragile amid global tariff tensions. The retailer aims to hold prices steady and expand via a $233M deal to acquire Australia’s Reject Shop.

• Endeavour Mining: Endeavour Mining plans to maintain strong shareholder returns while expanding in West Africa. The company has returned $1.4 billion through dividends and buybacks over the past four years. It expects a 35% increase in gold production by 2030 and aims to produce 1.1 to 1.26 million ounces in 2025. Endeavour has completed five projects on time and on budget in the past eight years.

• Politics: The U.S. and Canada are in advanced talks on an economic and security deal, with a draft framework already exchanged. Final approval depends on U.S. President Donald Trump, with no set timeline. Progress has been made, but Trump’s unpredictability and domestic issues, including protests and a public feud with Elon Musk, are causing delays.

• Gold: The U.S. and China reached a tentative trade framework after talks in London, with China agreeing to ease rare earth exports and the U.S. pausing visa restrictions on Chinese students. Tariffs remain confusing, with Trump citing a 55% rate, though officials clarified this includes pre-existing levies. The U.S. had raised tariffs to 145% at one point, while China retaliated with 125%, before both sides de-escalated to 30% and 10% respectively. Analysts warn the truce is fragile and offers limited gains, with major supply chain and geopolitical risks still in play.

• Inflation: U.S. inflation rose 2.4% year-over-year in May, up from 2.3% in April, while core inflation held steady at 2.8%. Monthly price growth slowed to 0.1%, suggesting subdued inflation despite rising grocery and appliance costs potentially linked to new tariffs. Gas, rent, and travel prices declined, offsetting other increases. Analysts expect price hikes to kick in by July as tariff effects ripple through supply chains, with back-to-school items projected to rise 5–15%.

Mako Mining Q1 Earnings

The stock market and stuff

• Nelk Boys Sued Over $23M ‘Metacard’ NFT Rug Pull (theDeepDive)

• Disney Buys Out Hulu Remainder For Over $438M (theDeepDive)

• Google offers buyouts to more workers ahead of court decision that could break up its internet empire (Globe)

• Tether Scoops One-Third Of Elemental Altus Royalties For $122M (theDeepDive)

• Robinhood Courts Congress With $35B Proposal To Seed Trump’s $1000 Account For Each Newborn (theDeepDive)

In the juniors

• Canada Nickel Releases Initial Resource Estimate For Mann West (theDeepDive)

• Goldshore Drills 1.52 g/t Gold Over 17.7 Metres In Newly Discovered Mineralized Shear Zone (theDeepDive)

• Sitka Hits 2.00 g/t Gold Over 65 Metres At RC Gold (theDeepDive)

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