Gold has all the potential to go unprecedentedly high. But silver will be gold on
Site:
Precious metals news
Gold has had a volatile month... It first dropped $40/oz in response to the July payrolls report, and then plummeted nearly another $100/oz within minutes in the flash crash that happened in the pre-market on the next trading day. In the past, that kind of trauma would have taken gold months, perhaps years, to recover from.
Sep 1, 2021 - 07:16:32 PDT
Mega investors have been talking up the merits of gold ownership lately. For example, the billionaire hedge fund manager who executed the “greatest trade ever” in 2007 is now pounding the table about the opportunity in hard money.
Gold’s rally higher has stalled around the 200-day moving average (DMA) at $1810 for now. Moves higher are still viewed as corrective only while the yellow metal remains below the $1835 region, according to Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank.
Over the last couple of months, it has become clear from conversations with friends and partners from the gold industry that there is a marked increase in retail demand for physical gold from Swiss investors.
Today we’ve published our latest central bank statistics which now includes data for July. Central banks added a net 30.1 tonnes (t) to global official gold reserves during the month, virtually in line (+0.3%) with net purchases in June. This continues the healthy level of interest in gold we have seen from central banks so far this year.
Sep 1, 2021 - 06:01:52 PDT
Investors also turned away from the greenback after US consumer confidence fell to the lowest levels seen since six months amid the spread of the delta variant of COVID-19 across the nation. This raised fears that the latest spike in infections was beginning to hurt the US economy, which could further support the Fed’s extension of its dovish stance.
The great Autumnal Bond Funding Season is upon us, but the looming taper of Central Bank Asset Purchase Schemes could well expose just how broken and dysfunctional bond markets have become. Markets always over-react to stress and panics, but when markets struggle with price discovery and liquidity the coming sell off could be magnified...
China's "Lehman Moment" Approaching: Evergrande Warns Of Default Risk From Cash CrunchSep 1, 2021 - 05:50:36 PDT
Evergrande - the largest real estate company which it over $300 billion in debt has been quietly dubbed China's Lehman - "is over-indebted and in danger of default. This could cause a crash."
Two More Factors Have Popped Up That Add to the Fed’s Inflation Worries in Years AheadSep 1, 2021 - 05:45:48 PDT
Trends in home prices and consumer confidence pointed to more inflationary issues on the horizon for the U.S. economy.
From anchorage stats to forward arrivals, ocean bookings, and inventory-to-sales numbers, all the latest data paints the same picture: The U.S. congestion crisis has never been more severe than it is now — and it’s getting worse.
At an increase of 92%, Uber and Lyft Rides Are More Expensive Than Ever Because of a Driver ShortageSep 1, 2021 - 05:35:52 PDT
The cost of a ride from a ride-sharing app like Uber or Lyft increased 92% between January 2018 and July 2021, and the recent driver shortage is to blame.
More Businesses Have Already Fled California This Year Than in All of 2020: Stanford StudySep 1, 2021 - 05:33:30 PDT
California has regulated and taxed its once-thriving economy into a coma. Major reasons for businesses leaving California include “high tax rates, punitive regulations, high labor costs, high utility and energy costs, and declining quality of life," according to a new Stanford study.
Futures Rise Toward Fresh Record High As PMIs Confirm Global Economy SlowingSep 1, 2021 - 05:32:00 PDT
To the day ahead now, and the main data highlight will be the release of the global manufacturing PMIs and the ISM manufacturing reading from the US, but there’s also the Euro Area unemployment rate for July, along with the ADP’s report of private payrolls from the US for August.
Mortgage rates have not moved much recently, but that could be about to change.
"The Job Market Recovery Is Dented" - ADP Private Payrolls Miss Huge, Only 374K Jobs Added In AugustSep 1, 2021 - 05:21:56 PDT
For the second month in a row, the ADP Private Payroll employment report has been a complete disaster, and one month after the the ADP missed by almost half printing at 330K in June (missing expectations of 683K), moments ago ADP reported that private payrolls in August rose just 374K, which while a modest improvement from July’s downward revised...
While most American investors have faith that the Federal Reserve can and will successfully tighten monetary policy to fight inflation — or have simply bought into the "transitory" inflation narrative — Germans are loading up on gold as a hedge against growing inflationary pressures.
Personal income is rising.But inflation is eating it up.Before factoring in inflation, personal income from all sources rose by 2.7% in July year-on-year. The month-on-month gain was a solid 1.1%. This includes wages, stimulus payments, transfer payments (unemployment, Social Security benefits, etc.) along with income from other sources such as interest, dividends, and rental income.
Private Payrolls Increase by Just 374,000 in August, Far Short of the 600,000 Estimate, ADP SaysSep 1, 2021 - 05:16:30 PDT
U.S. companies created far fewer jobs than expected in August as the Covid resurgence coincided with cutbacks in hiring, according to a report Wednesday from payroll services firm ADP.
U.S. Treasury yields climbed on Wednesday morning, ahead of the release of ADP's August national employment report.
Central banks continued to add gold to their reserves in July, according to the latest data from the World Gold Council.Led by Brazil's 8.5-ton purchase, central banks globally bought a net 30.1 tons of gold.