Precious metals news

The Biden administration aims to assist 500,000 households in achieving homeownership through the Neighborhood Homes Investment Act. This initiative is part of a broader effort to reduce housing costs and increase the supply of affordable homes in the U.S.

The November jobs report, showing 199K new jobs and a drop in unemployment to 3.7%, surpassed expectations but raises accuracy concerns. Past reports have seen downward revisions, suggesting this month's figures may also be adjusted later. The report includes a significant portion of returning strikers, skewing the job growth data, and highlights a 0.4% increase in average hourly earnings. However, the overall reliability of these figures remains questionable due to the pattern of subsequent corrections.

JPMorgan forecasts that by mid-2024, nearly all Americans, except the wealthiest 1%, will be financially worse off than before the pandemic. Excess savings accumulated during COVID-19 have been largely depleted, with rising delinquencies in credit and loans signaling increasing financial strain. Despite current stability in housing, the real estate market faces challenges due to high borrowing costs and significant commercial debt.

The assertion by Treasury Secretary Janet Yellen that the U.S. economy is strong enough to fund conflicts in Ukraine and Israel starkly contradicts Treasury data, highlighting a troubling disconnect in the understanding of the nation's financial situation by those in power. This discrepancy raises serious concerns about the competence of America's ruling class in managing the country's economic affairs and their grasp on fiscal realities.

Central bankers are increasingly alarmed by the potential for surging wages to trigger a dangerous wage-price spiral, threatening global efforts to tame inflation. The forecasted higher wage increases in key economies raise fears of destabilizing economic cycles, challenging the efficacy of traditional inflation control measures and intensifying financial uncertainties worldwide.

The Federal Reserve's Quantitative Tightening has significantly reduced its balance sheet to $7.74 trillion, marking a sharp retreat from pandemic-era measures. This downsizing, involving a steep $129 billion drop in November, signals a shrinking Fed influence in the bond market amid a ballooning national debt. These changes reflect a challenging and uncertain economic landscape, with potential implications for financial stability.

The Federal Reserve's upcoming economic projections will glaringly exclude crucial details on its balance sheet strategy, reflecting a deep uncertainty within the Fed about its role and impact on the economy. This omission underlines a lack of clarity and confidence in handling quantitative easing and tightening, raising significant concerns about the Fed's grasp of its own monetary tools and their effects on the financial system.

On a day marked by a significant drop in the Japanese yen, driven by speculative news about a potential Bank of Japan rate hike, the focus shifts to Japan's larger, more troubling economic picture. According to Deutsche Bank's chief FX strategist George Saravelos, Japan's economy is trapped in a precarious situation. It faces a stark choice between hyperinflation with a currency collapse or a market crash leading to social unrest. This dilemma is rooted in Japan's massive $20 trillion carry trade, which complicates any attempts at monetary policy normalization and underscores the deep-seated challenges facing the Japanese economy.

After several weeks of highly volatile precious metals prices, investors are curious about what comes next.  While the gold price BROKE OUT above the critical $2,000 level, it has come all the way back in just a matter of days.  The next few weeks are important for the price trend of the precious metals into 2024...

After several weeks of highly volatile precious metals prices, investors are curious about what comes next.  While the gold price BROKE OUT above the critical $2,000 level, it has come all the way back in just a matter of days.  The next few weeks are important for the price trend of the precious metals into 2024...

Gold recently hit a record high, reaching $2,135.39 per ounce. But what sets this rally apart from previous gold rallies?

Gold's prices have fluctuated due to a changing dollar, with recent extreme volatility underscoring its status as a safe-haven asset amid geopolitical events. Greg Weldon of Weldon Financial suggests that, with low current investment in gold and expectations of a weakening dollar and rising inflation, now might be an opportune time to invest in gold. He predicts a significant rise in gold prices if they cross the $2,060 threshold, given its inverse relationship with the dollar and real interest rates.

Gold excelled in 2023, outshining other commodities, bonds, and stocks despite high interest rates. For 2024, while a 'soft landing' in the US economy may generally dampen gold's appeal, unique factors such as geopolitical tensions, significant elections, and central bank activity could enhance its attractiveness. Moreover, the uncertainty surrounding the Fed's handling of the economy and the risk of a global recession might drive investors towards gold as a stable hedge.

President Joe Biden was criticized for claiming "0% inflation last month," a statement fact-checked as misleading. Critics noted that, despite this claim, the actual annual inflation rate is 3.2%, with prices having risen nearly 20% under his administration, with over 6.5 million Americans remain unemployed, and the U.S. has lost nearly 40,000 manufacturing jobs.

The American Dream, once accessible to most in the U.S., is now largely unaffordable, with essential elements like education and home ownership out of reach for average earners. It's become a reality only for high-income individuals or those with inherited wealth, straying from its ideal of debt-free success from humble beginnings. Ironically, this dream is more achievable in developing economies, where living costs are lower.

The Federal Reserve's reverse repo (RRP) facility, crucial in supporting liquidity and stocks, is declining and nearing zero, signaling tougher market conditions ahead. This decrease could lead to less support for stocks and potential funding challenges, echoing issues from 2019. The situation calls for continued vigilance in financial markets as the role of RRP diminishes, marking a shift to a less favorable environment for assets.

The labor market is deteriorating, evidenced by ADP and BLS reports showing significant declines in key sectors and slowing wage growth. Job quits have plummeted, signaling a stagnant job market. This downturn is exacerbated by troubles in manufacturing, commercial real estate, and a stressed housing market with unaffordable prices. These factors paint a bleak economic picture, with the Federal Reserve facing a precarious situation and the potential for further policy missteps.

In 2017, JPMorgan Chase's CEO harshly criticized Bitcoin, likening it to tulip bulbs and threatening to fire any employee trading it. He continued this stance, calling Bitcoin a "hyped-up fraud" and likening it to a pet rock. Recently, he reiterated his negative view to the Senate Banking Committee, suggesting that the government should shut down crypto, asserting it has no legitimate use.

Join Mike Maloney and Alan Hibbard as they dissect one of the most important articles of 2023.

Gold prices increased on Thursday, driven by a weaker dollar and lower Treasury yields, as investors anticipate key U.S. payrolls data to gauge the Federal Reserve's rate path. Spot gold went up by 0.4% to $2,032 per ounce, and U.S. gold futures saw a 0.1% rise to $2,049.60. With 10-year Treasury yields near a three-month low and the U.S. dollar index dropping 0.3%, gold became more affordable for holders of other currencies.