Precious metals news

The seemingly bullish economic indicators of shrinking inventories at warehouses may not be as positive as they appear. Copper traders, who regularly monitor inventories, are facing a troubling trend. Metal stockpiles in warehouses monitored by the world's major exchanges are providing increasingly unreliable signals.

Taxing authorities are attempting to tax remote workers who no longer commute, creating legal and constitutional issues. The unconstitutional actions of states like Massachusetts and Ohio in taxing nonresident workers are depriving smaller municipalities of revenue and violating due process. The Supreme Court's decision not to address the matter leaves remote workers vulnerable to unjust taxation. The outcome of ongoing cases will determine how remote workers nationwide are taxed, with potentially negative implications for their income.

The Chinese city of Tianjin hosts the first in-person World Economic Forum (WEF) event in China since the pandemic, raising concerns. Executives, officials, and media members gather, but critics question the timing amid ongoing global challenges. Chinese Premier Li Qiang acknowledges the escalating global challenges and warns that COVID-19 won't be the last devastating health crisis.

The European Union joins an international effort to explore risky climate interventions, including manipulating the Earth's weather patterns and deflecting the sun's rays. Critics argue that these interventions distract from addressing rising emissions and pose potential dangers, such as altering vital rain patterns. The EU's involvement in this debate raises concerns about power imbalances, conflicts, and ethical issues. Scientists urge for an international agreement to refrain from using such solutions.

Billionaire investor Jeffrey Gundlach warns that the ballooning US debt, currently exceeding $32 trillion, is a cause for concern. The Federal Reserve's interest rate hikes are making it more expensive to service the debt. With interest expenses rising and the debt nearing $33 trillion, Gundlach highlights the 500 basis point rate hikes as a major factor. He also points out that a significant amount of short-term debt issued at near-zero interest rates is coming due, which could worsen the situation. The US bond market's inversion, with the 2-year yield surpassing the 10-year yield, has historically predicted an economic downturn, aligning with Gundlach's warning of an imminent recession.

The United States federal debt is at its highest level since World War II and is projected to continue growing. This poses concerns as it leads to additional interest payments and less funding for productive capital assets. High debt levels can also result in financial crises and government defaults. Factors such as fiscal policies, inflation, GDP growth, and interest rates contribute to this projection. The debt-GDP ratio is expected to exceed 100 percent in the near future. The ability to stabilize the ratio depends on various factors, including interest rates, inflation, economic growth, and effective deficit-reducing policies.

The risk of a nuclear war is growing in Ukraine, with President Biden accusing Russian President Vladimir Putin of preparing to use tactical nuclear weapons. However, Russia is currently winning the war in Ukraine and has no need to resort to nuclear weapons. The suggestion by former Pentagon official Michael Rubin that the US should provide tactical nuclear weapons to Ukraine is reckless and could escalate the conflict. There is also a worrying possibility that Ukraine could stage a "false flag" attack on the Zaporizhzhia nuclear power plant, potentially spreading radiation and triggering NATO intervention. These developments increase the danger of a direct conflict between the US and Russia, bringing the world closer to World War III.

President Biden's claim of creating close to 500,000 jobs per month for the last two years is misleading, as the actual average increase in nonfarm payrolls is 458,708 per month. The inflated job creation figures conveniently ignore the rise in full-time employment, which is much less. Furthermore, the discussion highlights the detrimental impact of Biden's policies and the Fed's inept decisions on inflation and the unaffordability of homes. The attempt to credit only the positives while deflecting responsibility for the negatives is disingenuous and unlikely to change.

Apartment renters in Las Vegas are currently enjoying the upper hand, with landlords offering enticing perks such as free rent, event hosting, and reduced rents. The city has seen a decrease of 2.2% in rental rates during the first quarter of this year. Similar trends are observed in Sunbelt cities like Phoenix and Atlanta. The surge in multifamily construction, fueled by low interest rates and high rental demand, is now facing a downfall as interest rates rise and economic viability diminishes. The government's intervention during the pandemic, including shutdowns, zero interest rate policies, and fiscal stimulus, has contributed to the current state of the apartment market. The Austrian business cycle theory suggests that government intervention and subsequent market adjustments are to blame for the ongoing apartment sector depression.

The median price of new homes experienced the steepest six-month decline ever in April, but saw a slight increase in May. This decline reflects builders' response to affordability concerns caused by high prices, rising mortgage rates, and inflation. Existing home sales, on the other hand, have mostly stabilized at a low level.

Mortgage applications rose by 3.0 percent, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The Market Composite Index, which measures loan application volume, also increased by 3.0 percent. However, mortgage purchase demand is down by 45.3 percent, refinance demand is down by 91 percent, and mortgage rates have increased by 128 percent under the current economic conditions.

Global liquidity is expanding, benefiting stock markets but posing challenges for bond investors. Central banks are expected to resort to quantitative easing again. The US Fed's balance sheet reduction has been ineffective, and unconventional policies are anticipated. Financial markets heavily rely on liquidity to refinance existing debts. Advanced economies face fiscal pressures, and the US government's Treasury issuance requires increased Fed holdings. Limited alternatives to Fed QE exist, while geopolitical tensions may reduce foreign appetite for US debt. Higher interest rates aggravate fiscal deficits and debt problems. The future appears challenging with no easy solutions.

CNBC's Sara Eisen moderates a panel on monetary policy with Jerome Powell, chairman of the Federal Reserve System; Andrew Bailey, governor of the Bank of England; Christine Lagarde, president of the European Central Bank; and Kazuo Ueda, governor of the Bank of Japan, at ECB Forum on Central Banking.

Central bankers globally have hastily escalated interest rates to levels not seen in over a decade in an attempt to quell inflation. However, they admit uncertainty about the effectiveness of their measures, leaving room for doubt and concern.

Bonds rated CCC, the lowest junk tier, suffered their biggest slump since the March banking crisis, losing 0.86% from June 19-23. Investors who took on more risk are now facing a painful reversal. The belief in a central bank-controlled world without harming growth has been shattered. Bullish bets on high-yield corporate bonds unraveled as the Fed prioritized inflation control. Lowest-rated companies are vulnerable to downgrades and defaults as funding costs rise and earnings decline. The rally in CCC bonds relied on low unemployment and recession absence. The recent Fed pause on interest rate hikes and fear of missing out fueled the rally, but sentiment has shifted.

The Japanese yen faced steep declines and reached its weakest level since early November, driven by increased risk appetite and expectations of more US interest rate hikes. The Bank of Japan's dovish outlook on monetary policy further contributed to the yen's weakness. Japanese officials, including Finance Minister Shunichi Suzuki, warned of potential corrective measures to address the currency's decline.

When you buy physical gold, the price you pay will start with the "spot price."
As defined by Investopedia, the "spot price" is "the current price in the marketplace at which a given asset—such as a security, commodity, or currency—can be bought or sold for immediate delivery."
So, how is the spot price for gold determined?

US house prices continue to decline, and economist David Rosenberg has issued a warning about the market. Citing charts showing a drop in median prices for new single-family homes and existing homes, Rosenberg questioned the Federal Reserve's decision to raise interest rates further despite declining home prices, a key component of inflation. He also cautioned stock-market bulls, highlighting historical trends that indicate a recession and bear market following rate hikes. Rosenberg advised investors to play the market cautiously and ensure they have hedges and insurance in place.

The S&P CoreLogic Case-Shiller Home Price Index for the 20 cities showed a significant year-over-year decline of 1.7%, the largest drop since 2012. Despite the spring selling season typically driving up sales volume and prices, the growth this spring was not sufficient. Prices fell further compared to the prior year, indicating a negative trend. Additionally, 10 out of the 20 metropolitan areas covered by the index experienced year-over-year price declines. The housing market in several key cities, such as Seattle and the San Francisco Bay Area, saw continuous declines for multiple months. This data highlights a challenging and declining housing market with decreasing prices in various regions.

Despite elevated borrowing costs, US mortgage applications for home purchases continued to rise for the third consecutive week. The Mortgage Bankers Association reported a 2.8% increase in applications for home purchases, reaching a nearly two-month high. The overall measure of mortgage applications, including refinancing, also climbed to its highest level since early May. However, the contract rate on a 30-year fixed mortgage increased by 2 basis points to 6.75%. The survey, which covers a significant portion of retail residential mortgage applications in the US, reflects the ongoing activity in the housing market.