Precious metals news

Turkey continued its trend of investing heavily in gold in January, purchasing 23 tonnes and maintaining its position as the world's leading gold buyer among central banks for that period. This recent purchase has brought Turkey's gold reserves to an all-time high of 565 tonnes. Globally, central banks have increased their gold reserves by a net total of 31 tonnes in January, marking a 16% rise from December's figures. Following Turkey, the People’s Bank of China and the National Bank of Kazakhstan were significant buyers, adding 15 tonnes and 4 tonnes to their gold reserves, respectively.

Speaking to the Investing News Network, Joe Cavatoni, market strategist at the World Gold Council, reminded investors that it's important to hold the yellow metal during tough times.

U.S. weekly jobless claims have dipped, showcasing the labor market's robustness even as the tech sector announces significant layoffs. Last week saw a decrease of 9,000 in jobless claims, settling at 218,000, against a backdrop of anticipated layoffs predominantly in the technology industry. This development suggests not only the absence of widespread job losses but also a strong economic growth momentum carrying into early 2024, potentially impacting the Federal Reserve's interest rate decisions.

Global creditors engaged with major ratings agencies such as Moody's, Fitch, and S&P Global Ratings to discuss the impact of debt relief provided to some of the world's poorest nations. The focus was on how these actions affect credit ratings, particularly in light of the Debt Service Suspension Initiative (DSSI) which has been crucial since the COVID-19 pandemic. Countries seeking relief faced increased borrowing costs due to downgrade warnings, highlighting the need for a balanced approach to sovereign debt distress.

Companies around the world are starting to buy back their own shares at a fast pace as 2024 begins, thanks to strong earnings that were better than many expected. After being cautious with their money in 2023 due to high borrowing costs, businesses are now expected to increase their share buybacks this year. In the United States alone, companies have announced plans to buy back $105 billion of their own shares just in the first week of February, a record start to the year. This is seen as a big support for stock markets, which are already hitting new highs, with the S&P 500 Index reaching new records nine times this year.

Jerome Powell's 60 Minutes portrayal of the national debt crisis as a distant concern starkly contrasts with the urgent reality we face. Peter Schiff doesn't mince words in his most recent podcast when he highlights the immediate threat:

There's a Major Disconnect today between the Broader Stock Markets and the silver price.  The primary silver miners struggle to produce silver with non-existent profit margins while the S&P 500 hit a new high today.  Something has to give, and the better fundamental value is in silver...

The United States is making a big change to how fast stock trades happen, cutting down the time to just one day for a transaction to be completed, known as T+1. This change, happening in less than four months, is causing a lot of work for CLS, the biggest company in the world for settling foreign-exchange trades. Since the currency market usually takes two days to settle trades, this new faster stock trade time could lead to problems, especially for international investors who need to get their hands on dollars quickly to buy US stocks.

In the last quarter 2023, credit card debt in the U.S. hit a new high, reaching $1.13 trillion. This marks a $50 billion increase, or 4.6%, from the third quarter, as reported by the New York Federal Reserve Bank's quarterly analysis on household debt and credit. Not only did credit card balances spike, but overall household debt also went up by 1.2%, totaling $17.5 trillion.

China's economy is facing challenges as consumer prices have fallen at the quickest rate in nearly 14 years, signaling a tough road ahead for its economic recovery. In January, the consumer price index, which measures the average change in prices paid by consumers for goods and services, decreased by 0.8% compared to a year earlier, marking the most significant drop since September 2009. This decline in consumer prices, more than what economists had anticipated, suggests China is under deflationary pressure, meaning prices are decreasing across a wide array of goods and services.

One year since the collapse of Silicon Valley Bank and Signature Bank, the bank that acquired Signature Bank's assets is showing signs of collapsing.

In Egypt, the soaring prices and a declining currency have shifted a long-standing tradition. Traditionally, Egyptian women receive a gold jewelry set during their engagement, known as "shabka." However, due to economic difficulties, with inflation over 30% and the currency losing half its value against the dollar, many are now receiving silver instead.

Goldman Sachs is sticking to its positive outlook on gold, predicting it will hit $2,175 in the next year. This confidence is driven by ongoing demand and global political tensions.The market's hesitance, influenced by the Federal Reserve's tough stance and the postponement of interest rate reductions till June 2024, hasn't dampened Goldman Sachs' optimism. They believe that solid demand for physical gold and geopolitical concerns will keep gold's price from falling too much, keeping their $2,175 target firmly in view.

The U.S. deficit is expected to significantly increase over the next decade, according to the Congressional Budget Office (CBO). Interest payments on government debt are set to consume an unprecedented portion of the budget. This year's deficit of $1.6 trillion is projected to jump to $2.6 trillion by 2034, despite a slightly more optimistic outlook than earlier predictions. The deficit as a percentage of GDP is forecasted to rise from 5.6% this year to 6.1% in 2025, maintaining that level through 2034, a situation typically only seen during economic crises. With projected low unemployment rates, these large primary deficits are notably concerning.

The Congressional Budget Office (CBO) has issued a warning that the cost of servicing the US government's debt will reach a new high next year and will continue to increase. This situation raises concerns about the government's borrowing pace. US debt held by the public is expected to reach $45.7 trillion, or 114% of GDP by 2033, according to the CBO’s latest forecasts. That’s actually down from the 118% projection for 2033 released a year ago.

To help you stay ahead of potential trouble in the markets, we're closely monitoring the commercial real estate sector, which is under stress from decreasing demand and soaring lending costs. Banks supporting the sector, including NYCB, are on the brink -- will it be an isolated event or a contagion that could infect the financial system?

New York Community Bank is in the midst of a financial storm, and we've got you covered with a dedicated website at GoldSilver.

While broader macroeconomic trends are always what’s most significant for the gold price during any given election, some interesting trends emerge when you look at the numbers. And when an election is contentious, historic, or chaotic as 2024’s promises to be, the outcome is all the more significant for gold.

As forecasted, the U.S. Natgas price has now fallen below the $2 level and will likely continue even lower.  Unfortunately, the ENERGY CLIFF is impacting the Natgas Market the most as the U.S. Henry Hub price is now falling below the total cost of production...

In response to declining sales driven by increased menu prices, McDonald's CEO Chris Kempczinski has announced a strategic pivot towards affordability in 2024. The announcement comes after the fast-food giant faced backlash for pricing a Big Mac combo meal at nearly $18, a move that alienated its core customer base. Despite achieving a 3.4% growth in global same-store sales for the latest quarter, McDonald's fell short of the anticipated 4.7% growth, a shortfall attributed to both the price hikes and impacts from Middle Eastern conflicts on overseas franchisees. This resulted in a nearly 4% drop in McDonald's stock price to $285.97.