Precious metals news

Gold prices are showing resilience as investors await crucial US labor market data, particularly the nonfarm payrolls report due on Friday. Recent job openings data suggesting a cooling labor market has increased expectations for aggressive Federal Reserve rate cuts, which typically benefit gold. The precious metal has gained over 20% this year, driven by anticipation of monetary easing, strong over-the-counter demand, and geopolitical tensions. While trading in a narrow range around $2,500, gold remains near its recent all-time high, supported by a weakening dollar and lower bond yields.

Gold's recent surge to all-time highs is driven by a combination of factors, including geopolitical uncertainties, increased central bank purchases (particularly from China), and a weakening US dollar. Keith Lerner, a strategist at Truist, suggests that gold remains an attractive investment option for portfolio diversification, citing its positive technical trends and potential as a hedge against currency fluctuations.

Join us in this insightful discussion with Alan Hibbard, Precious Metals Specialist at GoldSilver.com, as we delve into the current state of the gold

Gas prices in the U.S. are declining significantly, with the national average reaching a six-month low of $3.32 per gallon. This drop is attributed to falling oil prices, weakening gasoline futures, and the end of the summer driving season. Analysts predict that prices could potentially reach $3 per gallon by year-end, barring any major disruptions like hurricanes. The decline in oil prices, partly due to concerns over China's economy and increased OPEC+ supply, may prompt the oil alliance to reconsider its production policies.

In July, U.S. job openings fell to their lowest level since January 2021, with vacancies dropping to 7.67 million and layoffs rising to 1.76 million, the highest since March 2023. This decline in job openings, coupled with slowing job growth and rising unemployment, indicates a softening labor market, raising concerns about a potential recession. The Federal Reserve is closely monitoring these developments and is expected to consider lowering interest rates at its upcoming meeting. The August employment data, due soon, will be crucial in determining the Fed's next steps, especially if it shows further labor market weakness.

An economist outlines six key indicators that can help predict an impending recession, offering valuable insights for individuals concerned about economic stability. The article provides expert advice on how to interpret these signs and prepare for potential economic downturns. By understanding these indicators, readers can make informed decisions about their finances and take proactive steps to protect themselves.

Many borrowers mistakenly believe they should wait for the Federal Reserve to officially lower interest rates before taking out long-term loans, hoping to secure lower rates. However, research shows that long-term rates already reflect anticipated changes in short-term rates, so waiting is unnecessary. This misconception can undermine the effectiveness of Fed policy, as borrowers rush to lock in rates before expected increases, inadvertently fueling inflation. Even sophisticated investors and corporate managers often make this error, assuming long-term rates will follow the path of short-term rate changes.

The bond market is experiencing intense conflicts, dubbed "covenant wars," as companies exploit weakening debt terms to pit creditors against each other. Over the past decade, covenants protecting lenders have eroded due to low interest rates and fierce competition to lend to riskier, higher-yielding companies. Now, with rising interest rates causing financial strain, companies are increasingly using tactics to circumvent covenants, often by favoring new creditors over existing ones. This trend is causing concern among investors about the stability of the high-yield debt market and is even spreading to the traditionally more cooperative private credit sector.

Goldman Sachs advises investors to invest in gold as the Federal Reserve is expected to cut interest rates soon. Despite a slight dip from its all-time high, gold has risen nearly 22% this year, making it the second-best performing asset after cryptocurrencies. Goldman Sachs views gold as a preferred safeguard against geopolitical and financial risks, supported by central bank purchases in emerging markets. The firm has set a target price of $2,700 per ounce for 2025, recommending a "long gold" position as the metal's upward trajectory continues.

A recent Federal Reserve Bank of San Francisco study suggests that U.S. housing inflation is expected to decrease in the coming year as housing supply and demand balance out. This decline in housing costs is likely to contribute to overall lower inflation rates. Despite the Fed's efforts to curb inflation through interest rate hikes, housing costs have remained stubbornly high. However, the researchers predict that shelter inflation could drop to around 2% by year-end, before settling back to pre-pandemic levels of about 3.3% next year.

The U.S. stock market experienced a significant selloff, driven by growing concerns about a potential recession amid weak manufacturing data and anticipation of upcoming jobs reports. This volatility has spread globally, affecting markets in Europe and Asia, particularly hitting tech stocks hard. Investors are now reassessing their optimism about potential interest rate cuts and seeking safer assets as they brace for potential economic challenges ahead.

Gold prices continued to decline on Wednesday, falling to a two-week low despite a broad market sell-off. This unexpected behavior is attributed to investors selling gold to cover margin calls in other markets, particularly equities. The precious metal's weakness persists ahead of important U.S. economic data releases, including non-farm payrolls, which could influence Federal Reserve rate cut expectations.

While there is a lot of FAKE NEWS in the media, I decided to discuss some of the Fake News that is taking place in the precious metals industry.  In this update, I cover what I believe are Two Fake News events taking place, but this is only the Tip of a massive Iceberg....

UBS predicts a bullish outlook for gold in 2024 and beyond, forecasting prices to reach $2,600 per ounce by the end of 2024 and potentially exceeding $2,800 over the next two years. This optimistic projection is based on strong central bank purchases, sustained physical demand, and ongoing macroeconomic and geopolitical uncertainties. UBS analysts believe these factors have effectively raised gold's trading range and will continue to support higher prices, even as they expect some seasonal quietness during the summer months. The bank also sees potential upside catalysts in the second half of 2024, including the U.S. elections and concerns about the U.S. fiscal deficit.

In July 2024, central bank gold demand surged, with net purchases more than doubling to 37 tonnes despite rising gold prices. The National Bank of Poland led the buying, followed by Uzbekistan and India's central banks. This marked the highest monthly total since January, indicating a strong commitment by central banks to accumulate gold. The ongoing demand is expected to continue, as central banks seek to bolster their reserves amidst economic uncertainties.

Ukrainian President Volodymyr Zelenskiy has renewed his plea for air defense systems following a devastating Russian missile attack that killed at least 41 people and wounded over 180 in Poltava. The strike, which targeted a military educational facility and a nearby hospital, is one of the deadliest since Russia's invasion began in 2022. Zelenskiy emphasized the urgent need for air defense systems and long-range strike capabilities to protect Ukrainian civilians from further Russian attacks, highlighting the human cost of delays in providing such support.

The Argentine province of La Rioja has introduced its own currency, the "chacho," to combat economic hardships resulting from President Javier Milei's austerity measures. Governor Ricardo Quintela implemented this quasi-currency to stimulate the local economy after federal funding cuts led to provincial default. The chacho, distributed to government employees as bonus payments, is accepted by local businesses at a 1:1 ratio with the peso. While the move has provided some economic relief, it also highlights the financial struggles of provinces under Milei's strict fiscal policies and raises questions about the sustainability of such local currency initiatives.

The August jobs report, set to be released on Friday, is a crucial economic indicator that could influence the Federal Reserve's decision on interest rate cuts in September. Following a volatile month in the markets, investors are eager to see if July's weaker-than-expected job growth was an anomaly or the start of a broader economic slowdown. Economists expect the U.S. economy to have added 163,000 jobs in August, with the unemployment rate potentially decreasing to 4.2%. The report will be closely watched for signs of labor market resilience and its implications for monetary policy.

Canadian stock futures declined on Tuesday due to falling oil prices and investor focus on the upcoming Bank of Canada policy decision. The energy sector faced pressure from lower oil prices linked to China's sluggish economic growth, while the materials sector was affected by easing gold prices and falling copper prices. Investors are anticipating a potential third consecutive rate cut by the Bank of Canada, with attention also on upcoming economic data including Canadian manufacturing PMI and U.S. jobs reports. These factors are influencing market sentiment and expectations for both Canadian and U.S. monetary policy decisions.

Argentina's central bank has sent a portion of its gold reserves abroad for financial validation, potentially to use as collateral for future financing. This move could provide the country with much-needed financial flexibility amid low international reserves and economic challenges. The central bank confirmed the transfer but did not disclose specific details, citing confidentiality. This action underscores the ongoing economic difficulties faced by President Javier Milei's administration, including the struggle to lift currency controls and manage debt obligations.