Gold has all the potential to go unprecedentedly high. But silver will be gold on
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If all goes according to Federal Reserve Chair Jerome Powell’s baseline forecast, the current surge in U.S. inflation will prove transitory, despite the central bank’s persistent efforts to stimulate growth and reduce unemployment. But what if people stop believing in this benign outlook? This is one of the greatest risks the Fed now faces.
Global central banks need to set out clear strategies for coping with inflation risks as the world economy experiences faster-than-expected cost increases amid an uneven recovery from the pandemic, the OECD said.
The Chinese gold market continues to show signs of recovery after it was hit hard by the coronavirus pandemic.Chinese gold demand rebounded sharply in the first half of 2021 after plummeting in 2020, and imports remained strong in July, above 2019 levels, according to the latest data from the World Gold Council.China ranks as the world's largest gold consumer.
A Reuters article by Stefano Rebaudo argued that the Federal Reserve might welcome a "bond market tantrum" that pushes bond yields higher. But does the Fed really want higher interest rates? And what would that mean for the economy?Despite the post-pandemic economic improvement and wide expectations that the Fed will begin tapering quantitative easing in the near future, bond yields have remained stubbornly low. Ten-year Treasury yields remain stuck just above 1.3%.
European Central Bank policymakers still see the recent inflation surge as temporary but a growing number appear to be acknowledging the risk that price growth may exceed their relatively benign projections.
Haruhiko Kuroda is poised to become the Bank of Japan’s longest-running governor at the end of this month, testimony to his ability to keep political and market pressure at bay despite the failure of his unprecedented monetary experiment to spark inflation.
After an unexpectedly large plunge in July, Housing Starts were expected to rebound (very modestly) in August while July's small jump in Building Permits was expected to be erased by a drop in August. In reality, both Starts & Permits beat expectations handily.
Sep 21, 2021 - 05:49:37 PDT
With the help of the European Central Bank’s endless monetary stimulus, twenty Europeans nations have negative sovereign yields. That is negative NOMINAL yields.
FOMC Preview: Fed Seeks To Downplay Rate Hike Prospects As Taper Talks AdvanceSep 21, 2021 - 05:47:44 PDT
The Fed is not expected to move on interest rates in its policy-setting meeting this week, but a round of economic projections could jolt markets if rate hikes are forecast to begin sooner than expected.
Sen. Mitch McConnell, the Senate minority leader, on Monday called out his Democratic colleagues for essentially pushing Republicans aside when it comes to legislation, and said his party will not come to their aid to raise the debt ceiling.
The bankruptcy of the Chinese real estate company Evergrande is much more than a “Chinese Lehman”. Lehman Brothers was much more diversified than Evergrande and better capitalized. In fact, the total assets of Evergrande that are on the brink of bankruptcy outnumber the entire subprime bubble of the United States.
Investors seeking hints about how Beijing plans to deal with China Evergrande Group’s debt crisis are training their crosshairs on the central bank’s liquidity management.Most Read from BloombergThe Global Housing Market Is Broken, and It’s Dividing Entire Countries Merkel’s Legacy Comes to Life on Berlin’s ‘Arab Street’Istanbul Turns Taps on Old...
China Evergrande Group slid deeper in equity and credit markets Tuesday, fueling concerns about broader contagion after S&P Global Ratings said the developer is on the brink of default.
"Not Transitory" - US CEOs Warn Inflation Is "Unprecedented" And Becoming "Structural" Sep 21, 2021 - 05:23:02 PDT
Some of the biggest names in business virtually attended the annual Morgan Stanley Laguna conference last week and warned about the complex nature of soaring inflation.
Even in the hottest U.S. housing market in more than a decade, new home construction has turned into a frustratingly uncertain and costly proposition for many homebuilders. Rising costs and shortages of building materials and labor are rippling across the homebuilding industry, which accounted for nearly 12% of all U.S.
U.S. Swap Spreads Widen, Three-Month Libor Rises As Risk Aversion SpreadsSep 21, 2021 - 05:20:16 PDT
Spreads on 10-year U.S. interest rate swaps over Treasuries hit their widest in more than six months due in part to worries about the potential fallout of Chinese property group Evergrande's financial troubles to the global economy.
U.S. Gold Bar & Coin Demand Doubling In 2021 & What Country Was Big Net Seller Of Gold In 2020?September 21, 2021
U.S. physical gold demand is on a tear this year, nearly double what it was last year. It seems as if Americans are even more concerned about the markets and financial system this year and have purchased a great deal more gold bullion. Even though gold demand picked up last year due to the Covid lockdowns and concerns for...
The point is that gold is not dead as a financial asset. In fact, the Fed’s balance sheet is actually propped up by US$470 billion of hidden gold value. But good luck finding it in the Fed’s financials.
Gold rose on Monday as fears about the solvency of Chinese property group Evergrande sparked a flight to safe-haven assets, but gains were capped by strength in the dollar ahead of the U.S. Federal Reserve's policy meeting.
If the inflation numbers leave you scratching your head, join the club. The August data was especially perplexing. The Producer Price Index came in hot, up 8.3% in the last year, inviting 1970s comparisons.