Gold has all the potential to go unprecedentedly high. But silver will be gold on
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‘Although many economists and investors have been encouraged by slower headline inflation, the reality is that inflationary pressures are still rising.’
By owning gold, investors are not necessarily hedging against a government default but ironically betting the Fed will increasingly misuse monetary policy to help the government avoid defaulting. That may not be the exact thesis gold investors signed up for, but there is ample evidence linking gold prices to Fed behaviors, as we will share.
The bottom line is speculators’ gold-futures trading that dominates gold price action has been stealthed in recent weeks. A major futures clearing firm suffered a ransomware cyberattack, taking down automated data systems. That missing is increasingly distorting gold prices.
Gold prices rose marginally on Wednesday, as investors awaited minutes of the U.S. Federal Reserve's latest policy meeting to assess prospects of further interest rate hikes.
The chairman of the Board of Directors of the second largest Swiss bank is under investigation by the Swiss authorities.
Bernie Sanders and Elizabeth Warren’s Bold Tax Hike to Shore up Social Security: MWFeb 22, 2023 - 06:04:08 PST
We are entering into what could be a prolonged battle over the future of Social Security and Medicare.
Quantitative easing has developed a certain resemblance to the Eagles’ “Hotel California” — you can check out any time you like, but you can never leave. We should pay more attention to quantitative tightening, suggest former Reserve Bank of India governor Raghuram Rajan and others in a recent paper. Commercial banks change their behaviour when there are plentiful reserves, making QT far more volatile and difficult to pull off than expected.
In the grip of the worst day for stocks in two months, traders in the hyper-liquid world of ETFs ditched equities and corporate bonds and headed for the safety of government debt as yields broke out anew.
‘Goldilocks’ Is Dead, Warns Morgan Stanley. The Risk of an Economic ‘Hard Landing’ Is GrowingFeb 22, 2023 - 05:51:51 PST
“With consumption and inflation reheating, risks of a hard landing resembling a boom/bust are growing,” Lisa Shalett, Morgan Stanley Wealth Management’s CIO, warns.
Investors are betting the European Central Bank will raise interest rates to all-time highs, spurred on by the eurozone economy’s resilience and signs that inflation could prove tougher to rein in than expected.
Bank of Japan (BOJ) board member Naoki Tamura on Wednesday warned of the risk of an overshoot in inflation and said the timing of an end to ultra-loose monetary policy will depend on economic, price and wage developments ahead. He also said the central bank will weigh the pros and cons of its current policy framework, in deciding whether to take additional steps...
Federal Reserve officials could shed light on how many policymakers saw the case for a larger interest-rate increase at their last meeting and whether they anticipated the need to take rates higher than previously thought to tame persistently high inflation.
Shares of Domino’s Pizza Enterprises Ltd. plummeted the most on record in Sydney after the pizza chain operator said its first-half earnings fell as customers spurned price increases meant to offset inflationary pressures.
A gauge of US home-purchase applications tumbled last week to the lowest level since 1995 as the highest mortgage rates in three months hammered a housing market struggling to stabilize.
Expensive US equities are flashing a warning sign that could see the S&P 500 sliding as much as 26% in the first half of this year, according to Morgan Stanley strategists.
Fixed-income assets have gone into reverse as central banks around the world have stood by their intention to keep raising interest rates to tame inflation, defying bond bulls who piled into debt last month betting on a pivot. US Treasuries tumbled Tuesday on further signs the world’s biggest economy is proving resilient despite almost a year of policy tightening.
The yield curve is indicating a US recession could begin as early as June. The likely rapidity of its onset means the Fed will have to loosen policy sooner and by more than the market is currently pricing.
Minutes from the U.S. Federal Reserve's latest meeting out Wednesday are expected to detail the breadth of debate at the central bank over how much further interest rates may need to be raised to slow inflation and cool an economy that has remained stronger than expected despite tighter Fed policy. The two-day meeting ended on Feb. 1 with the central bank raising its target interest...
After suffering their biggest one-day drop of 2023, US futures rebounded in muted trading on Wednesday, boosted by a drop in rates (the 10Y just hit a session low of 3.92% after rising as high as 3.97%) and weakness in the dollar, even as investors awaited further clues on the direction of monetary policy from the Federal Reserve’s minutes due out at 2pm today.
MSCI's broad index of global shares fell 0.4% to head for its lowest since Jan. 20, while the index's broad gauge of Asia-Pacific shares outside Japan fell 1.3% to its lowest since Jan. 6. Europe's STOXX 600 share index fell 0.4% in early trade. Wall Street futures markets indicated the S&P 500 share index would drift 0.2% higher after dropping 2% in the previous session.