Precious metals news

China is facing a deepening deflationary spiral that threatens to significantly impact its economy. Consumer prices are barely growing in many sectors, and the GDP deflator is expected to continue declining into 2025, potentially marking China's longest period of deflation since records began. This situation is exacerbated by falling wages and weak demand, leading to concerns about a cycle of reduced spending, decreased corporate revenues, and further wage cuts. The scenario draws parallels to Japan's "lost decades," raising alarms about the long-term economic consequences. Despite official reluctance to acknowledge the issue, some prominent figures, including former central bank governor Yi Gang, are calling for immediate policy action to address the deflationary pressures.

Russia is significantly increasing its gold purchases, leveraging a surge in oil and gas revenue to diversify its financial reserves and reduce dependence on the US dollar. The Russian Finance Ministry plans to allocate 172.9 billion rubles ($1.9 billion) for foreign currency and gold purchases over the next month, representing a sevenfold increase in daily purchases. This move is part of Russia's ongoing strategy to strengthen the link between the ruble and gold, creating a new gold standard and insulating its economy from US dollar transactions. As the world's second-largest gold producer, Russia is well-positioned to accumulate the precious metal, with this latest announcement indicating a more aggressive approach to gold acquisition in the coming months.

Silver prices exhibit seasonal patterns that can be valuable for investors. Analysis of historical data reveals recurring trends in silver's performance throughout the year, with certain months consistently showing stronger or weaker price movements. However, recent years (2020-2024) have shown some shifts in these patterns, highlighting the need for investors to consider both long-term historical trends and recent market dynamics. While months like October and June have maintained consistent patterns over time, others like April and December have shown significant changes in recent years. This suggests that while seasonality can be a useful tool for silver investors, it should be combined with current market analysis for a more comprehensive investment strategy.

Goldman Sachs is strongly recommending gold as the top investment choice in the current economic climate. The bank cites gold's unique position as a hedge against financial instability and geopolitical risks, especially in light of expected Federal Reserve interest rate cuts. Gold prices have already seen significant gains in 2024, reaching record highs, and Goldman Sachs predicts further growth to $2,700 per ounce by early 2025. This recommendation is based on factors including global uncertainty, weakening demand for other commodities, and the anticipated return of Western capital to the gold market following potential Fed rate cuts.

The technology sector is experiencing a dichotomy where enthusiasm for artificial intelligence (AI) is masking broader weaknesses across many tech companies. While AI-focused firms like Nvidia and Microsoft have seen significant gains, many other tech businesses unrelated to AI are struggling to recover from a post-pandemic slowdown. Investors and analysts note that traditional tech areas such as software, IT consulting, and electronic equipment production are facing challenges including weak demand and inventory issues. This disparity has led to slower growth rates for many tech companies, particularly evident in small-cap indices where there's no boost from mega-cap groups. The situation highlights a complex landscape where AI excitement overshadows ongoing difficulties in other tech subsectors.

Gold prices are holding steady as investors await crucial U.S. inflation data this week, which will influence expectations for the Federal Reserve's upcoming interest rate decision. The Consumer Price Index (CPI) due on Wednesday and Producer Price Index (PPI) on Thursday are key indicators that could sway the Fed's decision between a 25 or 50 basis point rate cut. Currently, traders see a 75% chance of a 25-basis-point cut at the Fed's meeting next week. The market's reaction to these inflation figures could potentially push gold to new all-time highs if the data suggests a more aggressive rate cut, while even a 25-basis-point cut scenario is expected to maintain gold's strong position.

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Gold is trading near $2,500, attempting to overcome its historical tendency to decline in September, a pattern that's happened in 9 out of the last 10 years. Despite a recent dip to $2,470, gold has rebounded, buoyed by global economic slowdown concerns. This economic climate has increased risks for growth-dependent assets while simultaneously raising expectations for more aggressive interest rate cuts from the Federal Reserve, whose next meeting is scheduled for September 18. These factors are contributing to gold's resilience against its typical September weakness.

The stock market is experiencing its worst weekly decline since March 2023, with the S&P 500 and Nasdaq falling sharply following a disappointing August jobs report. The labor market data showed fewer job additions than expected and downward revisions for previous months, raising concerns about economic cooling. This has led to increased volatility in both stock and bond markets as investors reassess their expectations for Federal Reserve rate cuts. While the unemployment rate slightly decreased, the overall jobs report has intensified debates about the pace of economic slowdown and the Fed's potential response.

The US economy added 142,000 nonfarm payroll jobs in August, falling short of the 165,000 expected by economists. However, this was higher than July's revised figure of 89,000 jobs. The unemployment rate decreased to 4.2% from 4.3% in July. Wage growth increased to 3.8% year-over-year, up from 3.6% in July, with a monthly increase of 0.4%. While the job additions were lower than anticipated, some economists view the report as consistent with a "soft landing" rather than a recession.

Gold prices are holding steady above $2,500 per ounce as investors eagerly await US economic data, particularly the payrolls report, which could significantly influence the Federal Reserve's decision on interest rate cuts this month. Recent weak job market data has increased expectations for rate cuts, typically beneficial for gold as a non-interest-bearing asset. The precious metal has seen a substantial 20% rise this year, driven by rate cut optimism, strong over-the-counter purchases, and geopolitical tensions, with prices reaching a record high in August.

The upcoming US presidential election is creating uncertainty in the metals market, potentially limiting price gains until after November. Citigroup analysts suggest that factors like Federal Reserve rate cuts, China's economic policies, and global manufacturing sentiment will have a more positive impact on metals prices in late 2024 or early 2025, once the election is over. The election's outcome could affect global risk appetite and influence China's stimulus decisions, which are crucial for metals demand.

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Gold prices continued their upward trajectory in August, reaching a new all-time high before settling at $2,513/oz, a 3.6% increase for the month. This rise was primarily driven by a weaker US dollar and lower Treasury yields as the Federal Reserve hinted at potential rate cuts. Additionally, India's reduction in gold import duties boosted demand, while global gold ETFs saw continued inflows, particularly from Western funds. However, China's economic slowdown may impact consumer gold demand, contrasting with the positive trends seen in other markets.

Howard Marks, co-chairman of Oaktree Capital Management, predicts that US interest rates will stabilize between 3% and 4% after the Federal Reserve's upcoming rate cuts. Speaking at a conference in Melbourne, Marks suggests that while the Fed will reduce rates from their current "emergency" levels, they won't return to the near-zero rates seen in recent years. He believes the inflation emergency is over, but cautions that economic growth may slow and profit margins could erode as the economy returns to a more normal state, characterized by a mix of good and bad times.

China's young consumers are increasingly turning to gold jewelry as both a fashion statement and an investment. This trend is driven by a combination of factors, including rising gold prices, cultural resonance with traditional Chinese designs, and the perception of gold as a stable store of value. Many young buyers are attracted to gold jewelry that incorporates ancient crafting techniques and cultural elements, reflecting a broader "China chic" trend. Additionally, gold is seen as a hedge against inflation and a safer investment option compared to other assets like real estate or stocks in the current economic climate.

Gold is up 1% to near one-week highs on Thursday, driven by a weaker U.S. dollar and lower yields following signs of a cooling labor market. Investors are now anticipating a potentially larger-than-expected interest rate cut from the Federal Reserve this month. Recent data showing a decline in private sector hiring and job openings has increased expectations for a 50 basis point rate cut, with traders now seeing a 45% chance of such a move. The upcoming non-farm payrolls report on Friday is expected to provide further insight into the labor market's health and influence the Fed's decision-making.

Reporting from the Limitless conference in Dallas, Mike Maloney discusses the unsettling calm in the gold market as it reaches unprecedented highs.

Global gold ETFs experienced their fourth consecutive month of inflows in August, driven primarily by Western demand. North American funds led the charge, adding $1.4 billion, as cooling inflation, a weakening labor market, and dovish Fed signals bolstered expectations of interest rate cuts. The trend was supported by a weaker US dollar, lower Treasury yields, and heightened geopolitical tensions. European, Asian, and other regional funds also saw positive inflows, with gold prices nearing record highs and market conditions suggesting potential for further growth.