Precious metals news

The United States and the United Kingdom have imposed new sanctions targeting the illicit gold trade, which they claim funds Russian President Vladimir Putin's war in Ukraine and fosters corruption. The UK froze the assets of five individuals, including Kamlesh Pattni, a businessman accused of smuggling gold and laundering money through a global network. These sanctions aim to disrupt Russia's use of illegal gold to evade sanctions and bolster its military efforts.

Bullion prices edged higher for the third consecutive day, reaching near $2,675 an ounce, as market attention shifts to key US inflation data due this week. The reports are expected to provide insight into the Fed's final rate decision of the year, with traders anticipating a potential 25-basis point cut despite ongoing inflationary concerns.

It is no coincidence that the surge in U.S. public debt over the past decade pushed the cost of producing gold to a record high.  So, how much will the increase in U.S. debt by 2030 further impact the gold mining cost?  Good question.  In this update, I provide my analysis of this fascinating subject...

Japan's economy grew at an annualized rate of 1.2% in Q3 2024, surpassing initial estimates of 0.9%. This stronger-than-expected growth has intensified speculation about an imminent interest rate hike by the Bank of Japan. The revised data, showing a 0.3% quarter-on-quarter expansion, strengthens the case for monetary policy tightening and has contributed to the yen's recent appreciation.

Gold prices climbed as China's central bank resumed bullion purchases after a seven-month hiatus, adding 160,000 fine troy ounces to its reserves. The surge was further fueled by heightened geopolitical tensions in Syria, where President Assad's regime collapsed, potentially destabilizing the Middle East and increasing safe-haven demand for gold.

Some asset managers are reconsidering their bearish stance on the US dollar due to a robust American economy and increasing global geopolitical tensions. Institutional investors have significantly reduced their short positions on the dollar, while hedge funds have increased their bullish bets, reflecting a growing optimism in the currency's strength.

It looks like the ENERGY CLIFF is coming back to bite hard this winter.  U.S. natural gas consumption surged this week as Europe faces another dreadful winter with rising prices and possible gas shortages.  I don't think Americans realize how much power bills will increase in the future...

In 2024, even the gold bulls weren’t bullish enough. See which analysts came closest. Plus a first look at the 2025 gold price predictions

Despite threats from US President-elect Donald Trump to impose 100% import duties, BRICS nations are continuing their work on a new settlement system. Russian Deputy Foreign Minister Alexander Pankin clarified that the project is not about creating a new currency, but rather developing an alternative payment mechanism. This move signifies BRICS' determination to reduce reliance on the US dollar in international trade.

Gold prices remain stable as investors anticipate the release of the US nonfarm payrolls report, which could influence the Federal Reserve's interest rate decisions. Strong labor data might discourage aggressive rate cuts, potentially impacting gold prices. Despite recent fluctuations, gold has seen significant gains in 2024, supported by rate cut expectations and central bank purchases.

The amount of energy it now takes to mine one Bitcoin is absolutely stunning.  Ever since Bitcoin halving in April, the energy now needed to produce just one Bitcoin should shock the public.  Unfortunately, the market is unaware of the power-hungry Bitcoin Mining Industry because it is focused on the $100,000 price...

If this is a measurement of the scale of our bubble…that is saying…this is horrifying. This is absolutely horrifying.

Incrementum has released its December 2024 Gold Compass report, offering a comprehensive analysis of the gold sector. Co-authored by Ronald-Peter Stöferle and Mark J. Valek, the report examines key factors influencing gold, including real interest rates, debt, and inflation, providing investors with valuable insights into the precious metals market.

US unemployment benefit applications rose to a one-month high of 224,000 in the week ending November 30, surpassing economists' expectations of 215,000. This increase of 9,000 claims coincided with the Thanksgiving holiday, a period known for data volatility. Despite this uptick, the labor market remains relatively stable, with continuing claims dropping to 1.87 million. The rise in initial claims, coupled with recent job cut announcements from major companies, may indicate subtle changes in the job market, though overall layoffs remain low.

Wage growth at the smallest US firms accelerated in November, with businesses employing fewer than 20 people seeing a 4.2% annual rate increase. This marks the biggest jump since early 2022 and could concern Federal Reserve policymakers monitoring inflation pressures. The trend extends to firms with 20-49 employees, while larger companies saw slower or unchanged wage growth.

Macquarie Group forecasts gold to reach new heights in 2025, potentially challenging $3,000 an ounce. Analysts cite Fed rate cuts, central bank buying, and possible Chinese demand as key drivers. Despite a potential struggle in Q1 due to a strong dollar, gold is expected to rally thereafter, with ETF holdings showing room for growth.

President-elect Donald Trump has nominated Paul Atkins, a former SEC commissioner and cryptocurrency advocate, to chair the Securities and Exchange Commission. Atkins is known for favoring clearer, less restrictive regulations on cryptocurrencies and has criticized the Dodd-Frank legislation. His appointment signals a potential shift towards a more crypto-friendly regulatory environment, contrasting with the approach of outgoing SEC Chair Gary Gensler. The crypto industry has welcomed this nomination, with bitcoin surging above $100,000 following the announcement.

Mexico has announced a 12% increase in its minimum wage, raising it to 279 pesos per day starting January 1, 2025. Despite this nominal increase, the depreciation of the Mexican peso by 18% over the past year means that the wage effectively decreases in dollar terms, now equating to about $13.75 per day compared to $14.25 last year. This adjustment, decided by a commission including government, labor, and business representatives, aims to counteract domestic inflation, which is currently around 4.75%. However, the new wage still falls short when compared to U.S. minimum wages.

Major financial institutions are predicting strong economic growth for the US in 2025, with forecasts exceeding current consensus estimates. Wells Fargo leads with the highest S&P 500 target of 7,007, while Bank of America projects 2.4% GDP growth. Analysts expect a shift from tech dominance to broader market participation, favoring value stocks and GDP-sensitive sectors.

Gold prices stabilized around $2,635 an ounce as investors evaluated political unrest in South Korea and France. Despite a 5% decline from October's record high, gold remains up 28% this year, supported by US monetary easing and central bank purchases. Upcoming US jobs data and the Federal Reserve's December meeting are key factors influencing gold's near-term outlook, with a potential 25-point rate cut expected.