Precious metals news

The first U.S. presidential debate between Vice President Kamala Harris and former President Donald Trump has caused ripples in financial markets. Harris' strong performance led to a dip in U.S. stock futures, a weakening dollar, and rallying bond prices as investors adjusted their expectations for future interest rates and government spending. The debate, which covered topics like abortion, the economy, and immigration, left markets cautious ahead of upcoming U.S. inflation data. European shares bucked the trend, rising on concerns about hurricane-related oil production disruptions. The debate's impact was further amplified by pop star Taylor Swift's endorsement of Harris, potentially influencing voter sentiment.

India has announced new tariffs of 12-30% on certain steel products imported from China and Vietnam, effective for the next five years. This move aims to protect and strengthen the domestic steel industry, which has been facing pressure from cheaper imports. The tariffs specifically target welded stainless steel pipes and tubes, reflecting India's ongoing efforts to balance its economic interests with its complex relationships with China and Vietnam. This decision comes amid broader tensions with China and follows a recent anti-dumping investigation into Vietnamese steel imports, highlighting India's strategic approach to trade policy in the steel sector.

The August US Consumer Price Index (CPI) report revealed an unexpected uptick in underlying inflation, primarily driven by rising shelter costs. Core CPI, which excludes food and energy, increased 0.3% from July and 3.2% year-over-year, surpassing economist expectations. Shelter prices, particularly owners' equivalent rent, saw significant gains, contradicting predictions of a slowdown. While overall inflation eased to 2.5% annually, the persistence of housing-related inflation and increases in categories like airfares offset declines in energy and used vehicle costs. This report has implications for the Federal Reserve's upcoming policy decision, with investors now anticipating a potential quarter-point rate cut.

Warren Buffett's Berkshire Hathaway continues to reduce its stake in Bank of America, selling $228.7 million worth of shares in early September. This latest sale brings the total divestment since mid-July to $7.19 billion, lowering Berkshire's ownership to 11.1%. Despite remaining the largest shareholder, Berkshire's ongoing sales have sparked speculation about the motivations behind the move. Bank of America's CEO Brian Moynihan acknowledged Buffett as a valuable investor but admitted uncertainty about the reasons for the sell-off. Some analysts suggest Berkshire may be aiming to reduce its stake below the 10% reporting threshold to avoid regulatory scrutiny.

The Federal Reserve's 2% inflation target, established in 2012, serves as a benchmark for maintaining price stability and economic health. Recent data shows inflation moderating towards this goal, with August's Consumer Price Index rising 2.5% annually. This trend, coupled with a slowing labor market, suggests the Fed may consider rate cuts soon. The 2% target provides a buffer, allowing the central bank to adjust interest rates as needed to support economic growth and employment without risking deflation. This approach gives the Fed flexibility to respond to economic fluctuations while maintaining long-term price stability.

The latest Consumer Price Index (CPI) report shows that US inflation has continued to moderate, reaching its lowest annual rate since early 2021. In August, consumer prices rose 2.5% compared to the previous year, down from 2.9% in July. This deceleration in inflation, driven by falling gasoline and used car prices, aligns with economist expectations and brings the rate closer to the Federal Reserve's 2% target. While core inflation, which excludes volatile food and energy prices, remained steady at 3.2% annually, the overall trend suggests that the Fed may consider rate cuts in the near future. However, the timing and extent of these cuts remain uncertain, as policymakers weigh the moderating inflation against other economic factors.

Former President Donald Trump and Vice President Kamala Harris engaged in their first presidential debate on Tuesday in Philadelphia, clashing on various economic issues. The candidates sparred over topics such as tariffs, inflation, and energy policies, presenting their contrasting visions for America's economic future. Their statements on these matters were subjected to fact-checking, revealing a mix of accurate claims and exaggerations from both sides as they sought to appeal to voters ahead of the upcoming election.

Brazilian authorities conducted a major operation against illegal gold mining in the Amazon, targeting a criminal organization that laundered over 3 tonnes of illegally extracted gold using fraudulent documentation. The operation, centered in Para state, involved arrests, search warrants, asset seizures, and the suspension of companies and licenses. This crackdown highlights the ongoing struggle to combat illegal mining and its associated environmental and social impacts in the Amazon rainforest.

Gold's recent strong performance, driven by a 20% year-to-date increase, is likely to continue regardless of the US election outcome due to several factors. These include fiscal concerns, safe-haven appeal during economic uncertainty, potential Federal Reserve rate cuts, geopolitical tensions, and de-dollarization efforts by central banks. Both major US political parties are expected to maintain or expand deficit spending, which could boost inflation and support gold prices. Additionally, gold's historical role as a hedge against economic instability and its consistent outperformance of inflation make it an attractive option for investors seeking to preserve wealth in an uncertain political and economic climate.

Vice President Kamala Harris and former President Donald Trump are set to face off in their first-ever debate in Philadelphia, with economic issues expected to dominate the discussion. The event promises to be contentious, with Trump likely to label Harris as a communist, while Harris is expected to criticize Trump's economic plans as potentially recessionary. Both campaigns have engaged in pre-debate tactics, with Harris's team using billboards and ads to provoke Trump, while Trump's advisors emphasize Harris's inexperience and the unpredictability of debating Trump. The debate's outcome could significantly influence voters' perceptions of both candidates' economic policies and overall fitness for office.

OPEC has revised its global oil demand growth forecast downward for both 2024 and 2025, citing recent data and economic challenges, particularly in China. The organization now expects demand to increase by 2.03 million barrels per day in 2024, down from its previous estimate of 2.11 million bpd. This adjustment reflects concerns about China's economic growth, the real estate sector, and the increasing adoption of cleaner energy alternatives. The downward revision underscores the challenges OPEC+ faces in balancing the oil market and comes amid recent price declines, with Brent crude trading near its lowest levels since March 2023.

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Bank of America has announced an increase in its minimum hourly wage to $24, effective next month, as part of its plan to reach $25 per hour by 2025. This raise, up from $23, translates to an annual salary of approximately $50,000 for full-time employees and reflects the bank's commitment to competitive pay, having raised its minimum wage significantly from $15 in 2017. The move aims to attract and retain talent amid a tightening labor market, with Bank of America emphasizing its role as a leader in employee compensation and benefits.

Gold remains steady as investors await the release of crucial US inflation data, which could influence the Federal Reserve's upcoming interest rate decision. The market anticipates potential rate cuts, with expectations of a 25 or 50 basis point reduction at the Fed's September 18 meeting. Lower interest rates typically benefit non-yielding assets like gold. Additionally, geopolitical tensions, economic uncertainties, and seasonal demand from India and China are expected to support gold prices, with some analysts projecting a rise to $2,600 per ounce by year-end.

HSBC strategists have provided insights into the current precious metals market, highlighting the interconnected dynamics of gold, silver, platinum, and palladium. They suggest that silver's recent rally may not be sustainable without support from gold prices, while palladium faces challenges due to weakening equity markets and economic concerns. Platinum, although potentially undervalued below $900 per ounce, is experiencing sluggish demand, particularly from Asian markets. The analysis emphasizes the distinct factors influencing each metal's performance and the broader economic context affecting their prices.

Gold prices are holding steady around $2,500 an ounce as investors await key US inflation data that could influence the Federal Reserve's decision on interest rate cuts. The precious metal has seen a significant 20% surge this year, driven by central bank purchases and expectations of rate cuts. Upcoming consumer and producer price index figures will be crucial in determining the Fed's next move, with lower inflation potentially encouraging a larger rate cut. Gold's appeal as a non-interest bearing asset and safe-haven investment continues to support its value amid global conflicts and economic uncertainty.

After China added a record amount of new solar and wind power capacity to the grid last year, something strange happened this year.  China stopped reporting data that showed falling renewable power usage.  How odd... No???

The Federal Open Market Committee (FOMC) is expected to cut interest rates in its remaining three meetings of 2024, responding to easing inflation and a softening labor market. FOMC policymakers, including Chair Jerome Powell, have signaled a shift towards less restrictive monetary policy. Markets anticipate steady rate cuts through 2025, potentially ending around 3%, though medium-term projections remain uncertain. The key questions now focus on the magnitude of rate cuts and the level at which the FOMC would consider policy no longer restrictive.

Donald Trump, the Republican presidential nominee, has proposed a new economic policy aimed at maintaining the US dollar's global dominance. At a rally in Wisconsin, Trump pledged to impose a 100% tariff on goods from countries that move away from using the US dollar in international trade. This proposal is part of his broader protectionist trade agenda and follows discussions with his economic advisers on ways to penalize nations seeking alternatives to the dollar. Trump argues that the dollar has been "under major siege" for years, despite it still accounting for 59% of official foreign exchange reserves in early 2024.

The Federal Reserve is facing a critical decision on whether to implement a quarter-point or a larger half-point interest rate cut at their September meeting, as recent economic data shows a slowing labor market and cooling inflation. The debate centers on balancing the risk of falling behind the curve and potentially triggering a recession against moving too aggressively. Chair Jerome Powell appears open to a larger cut, while some officials favor a more cautious approach. The decision is crucial for achieving a "soft landing" for the economy and maintaining Powell's legacy. Recent job reports and declining job openings have heightened concerns about the labor market's health, adding urgency to the Fed's deliberations.