Gold has all the potential to go unprecedentedly high. But silver will be gold on
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Following a historical high level of central bank gold buying, gold continues to be viewed favourably by central banks. Our 2023 survey revealed that 24% of central banks intend to increase their holding reserves in the next 12 months. Furthermore, central banks’ views towards the future role of the US dollar were more pessimistic than in previous surveys. By contrast, their views towards gold’s future role grew more optimistic, with 62% saying that gold will have a greater share of total reserves compared to 46% last year.
In 2023, we are most likely going to see a repeat of last year, according to the Institute, which expects the market deficit to remain high at 142.1 million ounces on the back of solid demand.
This indeed has proven to be the case, for after Q1 2023 drew to a close, the World Gold Council estimated that in the first quarter of 2023, the world’s central banks had again been net buyers of gold. This is the strongest first quarter of central bank gold buying on record.
Consequently, recessions have between little and nothing to do with the general level of prices. They are driven by other factors that have more to do with changes in the purchasing power of credit when it is unanchored from sound money, which internationally is simply gold.
Powell. With the upcoming June 14 meeting just two weeks away and the current probability of no rate hike standing at 62% according to the CME FedWatch Tool, it remains to be seen whether the Fed has finally abandoned its pursuit of raising rates to “fight inflation.”
After countless predictions of economic armaggeddon and panicky entreaties to raise the debt ceiling with no strings attached, the Biden White House and Congressional Republicans agreed on a new budget deal this week that does virtually nothing at all to change the status quo.
A new Fed survey shows that banks are cutting back on lending big time. Over the past thirty-five years, this almost always predicts recession. Our economy can't survive without endless new infusions of easy money. Original Article: "Banks Are Lending Less Money, and That's a Formula for Recession"
According to some commentators, the US banking crises is over, or at least can be easily managed by the Federal Reserve System. In addition, the Fed chairman has vouched for the health of the US banking sector. However, the banking crisis is likely in its early stages.
According to the report, US banks lost $472 billion in deposits during the January-March period, marking the fourth consecutive quarter of industry outflows. The decline was primarily from uninsured funds, the FDIC said, noting that insured deposits actually increased by $255.1 billion, or 2.5%, amid the failures of several regional banks.
Jun 2, 2023 - 08:39:31 PDT
On Thursday, for instance, New York City’s Banking Commission took action against Capital One and KeyBank, major banking institutions, for failing to submit anti-discrimination plans to the city. New York City Comptroller Brad Lander announced in a press release that the commission voted to “freeze NYC’s deposits” at both banks. “The headline is a wobbly one, given the recent banking system chaos. But, the detail is oh-so NY,” Eamonn Sheridan commented on Forexlive.
As of May 19th, the index was at -4.015, up 3.364 from the previous week. This is the seventh consecutive week the index has increased and is the highest reading since the week of June 3, 2022. The index has been in negative territory for the past 53 weeks, beginning the week of May 20, 2022.
Central bank digital currencies are usually touted as a tool for improving cross-country payment systems, fostering financial inclusion, or providing a substitute for diminishing cash. But as important as these benefits may be, they are secondary to the indispensable role CBDCs could play in preserving monetary sovereignty.
Ray Dalio isn't impressed by the debt-ceiling deal – and says the tentative agreement doesn't address the problem that the heavily indebted US government keeps borrowing more and more money.
Could monetary conditions be supportive of the “soft landing” scenario? While the “recession” versus “no recession” debate rages, there is a precedent for a “soft landing” scenario. Such is where the economy slows substantially but avoids a deeper contraction. However, the problem with that is that it works against the Fed’s mission of bringing down inflation.
Hundreds of Credit Suisse 's employees are resigning each week in a sign of uncertainty gripping the lender while it is being taken over by rival UBS , two people familiar with the matter said on Wednesday.
Jun 2, 2023 - 08:13:10 PDT
Don’t kid yourself. The talking heads at The Federal Reserve (more like Feral Reserve) are only about halfway there in terms of rate hikes. There is still over $8 trillion in monetary stimulus sloshing around the economy.
Jun 2, 2023 - 08:09:21 PDT
Quits are generally voluntary separations initiated by the employee. Therefore, the quits rate can serve as a measure of workers’ willingness or ability to leave jobs.
Native-Born Workers Tumble By 369K, As Foreign-Born Workers Soar To Record HighJun 2, 2023 - 08:03:28 PDT
And so, when Joe Biden takes his daily victory lap, patting both himself and his data-fudgers at the BLS on the back, maybe someone in the press corp can ask the president: is he more focused on creating jobs for Americans, or foreigners?
Gold prices were on track on Friday for their biggest weekly rise since early April, buoyed by hopes the U.S. Federal Reserve will not raise interest rates at its policy meeting this month, which also weighed on the dollar and bond yields.
“Without a doubt, de-dollarization is accelerating and will continue for years to come,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. “The US made a calculated decision to use the dollar to inflict pain, and there’s likely to be long-term consequences.”