Precious metals news

Japanese Finance Minister Shunichi Suzuki expressed concern over speculative trading in the currency market, which he believes is leading to an excessive decline in the yen's value that doesn't align with economic fundamentals. During a parliamentary address, Suzuki emphasized the government's readiness to intervene in the market to counteract these excessive fluctuations, stating that all options are on the table. He attributed the yen's movements to various factors, including the Bank of Japan's shift from negative interest rates, Japan's current account balance, price changes, geopolitical risks, and market sentiment.

Inflation rates have shown a significant decrease to 3.2% in February from a peak of 9.1% in June 2022, marking a decline from the highest levels observed, as per Trading Economics data. However, this rate still exceeds the preferable sub-2% rate seen before the pandemic, indicating inflation remains a concern. Inflation's impact reduces the purchasing power of cash substantially, with a 3% rate diminishing it by about a third over ten years. This trend of inflation exceeding the 2% target has persisted since 2021, underscoring ongoing economic challenges despite recent improvements.

On the first day of Q2 trading, crude oil futures experienced a price increase following reports of a missile strike on the Iranian consulate in Damascus, Syria. West Texas Intermediate for May delivery rose by 54 cents to $83.71 a barrel, while Brent for June delivery climbed 42 cents to $87.42 a barrel. Reports indicated that the strike, attributed to Israel, resulted in casualties including Mohammad Reza Zahedi, a senior commander of Iran’s Revolutionary Guard. Analyst Leo Mariani suggested that this incident could escalate Middle Eastern conflict, potentially driving oil prices higher in the near term.

Citigroup analysts have recently indicated that the likelihood of a global recession is now almost 50%, exacerbated by rapid interest rate hikes by central banks aimed at combating inflation. This inflation spike has been attributed to the aftermath of the Ukraine conflict and the ongoing COVID-19 pandemic. The analysts warn that the path to disinflation could significantly hinder growth, reflecting a grim outlook for global economic expansion over the next year and a half. Similarly, Barclays has highlighted the fragility of the global economy, projecting a slowdown to just 1% growth for developed economies in 2023, with the euro area expected to slip into recession by the end of the fiscal year.

The price of gold reached an all-time high, fueled by anticipation of potential Federal Reserve interest rate cuts, amid ongoing geopolitical conflicts and strong demand from China. The price of bullion surged to $2,265.73 an ounce, a 1.6% increase from its previous close, continuing its streak of record-setting performances. This rally has been partly driven by the latest data on the Fed's preferred inflation measure, the core personal consumption expenditures index, which showed a decrease in February, signaling a possible easing in borrowing costs despite the Fed's cautious stance.

Gold prices soared to a new record high, as expectations for U.S. interest rate cuts gained momentum following the release of encouraging inflation data. On Monday, gold futures climbed by more than $40, reaching $2,278.30 an ounce, marking a historic peak. This surge is part of a broader trend, with gold finishing March with an 8.9% increase and closing the quarter up by 8%. The rally in gold prices is largely attributed to recent U.S. inflation figures coming in below expectations, suggesting the Federal Reserve might consider reducing interest rates as early as June. The anticipation grew after data showed the Fed's preferred inflation measure, the core deflator, slowed to 0.3% in February from 0.5% the previous month.

Welcome to the world of modern economics where the term "inflation" no longer signifies the increase in the quantity of money, but has evolved into a plethora of buzzwords. From "shrinkflation" to "greedflation," these new terms and semantic shifts are by no means harmless but a manipulation of popular sentiment. Von Mises said they play "an important role in fomenting the popular tendencies toward inflationism."

While the U.S. is bragging about being the world's largest oil producer, it is also draining its oil reserves at the fastest rate compared to the other leading countries.  Worse yet, it is exporting nearly one-third of its domestic fast-reserve-depleting oil supply overseas... BRAVO...

When unemployment and inflation cause skyrocketing incentives for thieves to steal industrial metals like copper, criminals rush for some of the biggest sources: critical infrastructure. That includes cell towers, water pipes, street lights, and rail lines. These copper heists threaten transportation, communication, municipal services, urban safety, and other essentials of modern life. 

JD and Joel discuss why gold's breakout past the $2,200 resistance level means higher highs from here on out. Higher prices are driven by a dovish Fed, weakness in the dollar, and poor economic data. This week they also discuss Peter's most recent appearance.

If the Green Energy transition couldn't get any worse... I give you the U.K. DRAX Biomass Powerplant Boondoggle.  Someone thought it was a good idea to switch the U.K.'s largest coal-fired power plant to burning wood pellets until you peel back the layers and look into the massive global supply chain...

Larry Fink, CEO of BlackRock, the world's largest asset manager, has issued a dire warning about the United States' escalating national debt, now exceeding $34 trillion. Echoing concerns raised by Jamie Dimon and Jerome Powell, Fink emphasizes the urgency of the situation, likening potential outcomes to Japan's economic stagnation during its 'lost decade.' He highlights the peril of assuming that investors will indefinitely support the U.S.'s growing fiscal deficit. Additionally, Fink points out the danger of the recent rise in U.S. Treasury yields to 4%, a result of inflation expectations and the Federal Reserve's aggressive rate hikes.

Will HSBC’s new gold token mark the start of a new era in gold investing? Or is it simply another ‘paper gold’ mirage?

Despite a buoyant market with a strong dollar and high returns from stocks and cryptocurrencies, gold prices have surged to unprecedented heights. Notably, after achieving a record peak in mid-March, the price of gold remained robust, standing at $2,195.24 per ounce as of March 28, closely following a spike to $2,222.39 just a week before. The World Gold Council explores why gold prices have been taking off...

If you ask a liberal politician who their favorite economist is, there are three likely responses. One response is a panicked change of topic. From the slightly more sophisticated politicians who skim the New York Times, you might hear Paul Krugman. From the politicians who style themselves intellectuals of the left, you’d hear Thomas Piketty.

Gold is set to achieve its most significant monthly increase since November 2022, driven by expectations of U.S. interest rate cuts, robust demand for safe-haven assets, and substantial purchases by central banks. With a 0.8% rise to $2,212.47 per ounce and heading for an over 8% monthly and a consecutive quarterly increase, gold reached a record high last week, bolstered by the Federal Reserve's forecast of three rate cuts in 2024. The precious metal remains close to its peak, as investors await further U.S. economic data that could sway the Fed's future monetary decisions.

Federal Reserve Governor Christopher Waller emphasized the need for patience in adjusting short-term interest rates amidst recent inflation data that hasn't met expectations. Speaking at the Economic Club of New York, Waller suggested maintaining the current rate to ensure inflation moves back towards the Fed's 2% target, indicating a cautious approach towards any potential rate cuts later in the year. Despite the setback in inflation, Waller remains open to adjusting rates if progress on inflation is observed, highlighting the Fed's flexibility in response to economic indicators. The stance reflects a strategic wait-and-see approach, leveraging the strong economy to justify the current restrictive monetary policy while remaining vigilant on inflation trends.

Discover the truth behind HSBC’s claim of tokenizing gold with Mike Maloney and Alan Hibbard.

While the total annihilation of the Francis Scott Key Bridge in Baltimore probably isn’t a “Black Swan” big enough to trigger a global collapse, it adds potent fuel to several fires in an already fragile global economy.

This current bullish trend in the gold market is unique due to widespread optimism among analysts, traders, and bankers, albeit with some caution. The anticipation of a rise to $2,500 per ounce is fueled by favorable financial conditions, including interest rate cuts by major central banks like the Swiss National Bank, expected similar actions by the US Federal Reserve and others, election year dynamics, and ongoing wars. Gold recently hit a record high of $2,221 but needs to consistently break through this level for sustained growth. The silence from informed dealers adds to the intrigue.