Precious metals news

The great transition to the U.S. LNG Trucking Natural Gas Super Highway has totally collapsed but is now being replaced by another FIASCO, called RNG.  The idea that we can transition the diesel transportation is hitting a BRICK WALL...

A recent survey from the World Gold Council reveals central banks plan to increase their gold purchases in the years ahead...

Gold experienced a sharp sell-off at the start of the week due to recession fears in the U.S., but it is expected to recover amid ongoing geopolitical uncertainties and potential interest rate cuts by the Federal Reserve. Despite the recent drop, gold remains up 15% for the year, driven by central bank purchases and strong demand from Asian consumers. The focus remains on the Fed's rate decisions, as lower rates could boost gold's appeal. Central bank buying continues, though China's purchases have slowed. Gold prices are projected to peak in the fourth quarter, supported by geopolitical tensions and central bank demand.

The S&P 500 has rebounded from Monday's significant losses, ending the week with gains as market volatility subsided. The recovery halted what would have been the longest streak of weekly losses for the index this year. The initial sell-off was triggered by concerns over the Federal Reserve's response to weak economic data and a rate hike by the Bank of Japan, which increased volatility in the yen and affected carry-trade investors. Despite the turmoil, the markets have shown resilience, with the S&P 500 rising 0.6% and the VIX, Wall Street's "fear gauge," calming down. Analysts remain cautious, noting that while the market conditions are challenging, they do not signal an imminent recession or the end of the current bull market.

Federal Reserve Bank of Kansas City President Jeffrey Schmid expressed skepticism about a potential interest rate cut in September, despite market anticipation. Speaking at the Kansas Bankers Association meeting, Schmid noted that while inflation is nearing the Fed's 2% target, it remains above this benchmark, and the labor market is still robust. He emphasized that future policy decisions will depend on economic data, highlighting the importance of a cautious approach given recent inflation shocks. Schmid also pointed out that the labor market's cooling is necessary for easing inflation, and despite a recent rise in unemployment, indicators suggest continued economic resilience.

Federal Reserve Bank of Kansas City President Jeffrey Schmid expressed cautious optimism about inflation nearing the Fed's 2% target but emphasized that further data is needed before supporting interest rate cuts. Despite a recent rise in unemployment, Schmid noted that the labor market remains healthy, and he underscored the importance of data-driven policy decisions. While the Fed maintained its current interest rates, Schmid suggested that future rate cuts could be possible if inflation continues to decline. However, he stressed the need for vigilance due to past inflation shocks and the importance of balancing inflation control with employment stability.

Gold prices are set for a weekly decline as recession fears in the U.S. have eased following positive jobs data, which bolstered risk appetite and strengthened the dollar. This led to a sell-off in gold, a typical safe-haven asset, as investors shifted towards riskier investments. Although gold prices fell as much as 3% earlier in the week, they slightly recovered, with spot gold down 0.1% to $2,425.34 per ounce. The anticipation of a potential interest rate cut by the Federal Reserve in September, due to cooling inflation and labor market data, continues to influence market dynamics. Other precious metals, such as silver and platinum, also experienced declines, while palladium saw a slight gain.

The Bank of Japan (BOJ) has left traders uncertain about its intentions after delivering mixed messages regarding interest rate hikes. Governor Kazuo Ueda initially signaled that the weak yen was a risk and rates might rise, causing the yen to surge and Japanese stocks to plummet. In response, Deputy Governor Shinichi Uchida later stated that rate hikes were not imminent due to market turmoil, which calmed the markets but left investors confused. The BOJ's communication challenges have increased market volatility, with investors questioning the central bank's consistency and clarity as it navigates the unwinding of its long-standing monetary stimulus.

The average rate for a 30-year mortgage has dropped to 6.47%, the lowest in over a year, providing a boost for prospective homebuyers and homeowners looking to refinance. This decline follows a decrease in the 10-year Treasury yield, driven by disappointing labor market data. While the rate drop has spurred an increase in refinancing applications, economists expect mortgage rates to remain above 6% this year. The decrease in rates could enhance purchasing power, but high home prices and limited inventory continue to challenge buyers. The recent easing of rates aligns with expectations of potential Federal Reserve rate cuts amid signs of cooling inflation and a softer job market.

In response to growing political instability, some wealthy Americans are investing in luxury doomsday preparations, such as acquiring citizenship in countries like Malta or purchasing bespoke bunkers. These high-end bunkers, offered by companies like Atlas Survival Shelters, feature advanced security measures and luxurious amenities, including granite countertops and oak flooring. The trend reflects a broader societal anxiety reminiscent of past fears, but now influenced by political rhetoric. Polls indicate a significant portion of Americans perceive an increased risk of politically motivated violence, prompting affluent individuals to seek secure alternatives like the "Survival Condo" in Kansas. This shift in preparedness strategies highlights a new level of concern among the wealthy about potential catastrophic events.

Archaeologists have uncovered a pot of gold coins in the ancient Greek city of Notion, located in present-day western Turkey. This discovery, made during an excavation led by Dr. Christopher Ratte from the University of Michigan, dates back to the fifth century BC. The coins, known as Persian darics, were found buried beneath the floor of a courtyard house and are believed to have been the life savings of a Greek mercenary. The site, which includes typical features of an ancient Greek city, offers insights into the historical conflicts between Greek and Persian forces. The controlled excavation of this rare find provides valuable context for understanding the chronology of Achaemenid gold coinage and the socio-political landscape of the era

Join Alan Hibbard as he sits down with Tavi Costa from Crescat Capital to discuss the current state of gold and silver markets

Nvidia has experienced a $900 billion decline in market value since its peak in mid-June, despite ongoing investments in AI infrastructure by major tech companies like Microsoft, Amazon, Alphabet, and Meta. The company's shares have fallen 25% due to investor rotation away from expensive tech stocks amid macroeconomic uncertainties and market volatility. While Nvidia remains a key player in AI, the lack of immediate catalysts and concerns over monetizing AI investments have contributed to its stock's decline. Analysts suggest that the current downturn may be temporary, with a focus on Nvidia's upcoming earnings report at the end of August.

U.S. stocks surged on Thursday as a drop in weekly jobless claims alleviated concerns about the U.S. economy. The S&P 500 rose 1.8%, the Nasdaq jumped over 2%, and the Dow Jones increased by 1.8%. The jobless claims fell to 233,000, down from 250,000, surpassing economists' expectations. This positive labor market update followed a period of market volatility driven by weak non-farm payroll data. Despite recent market turbulence, investor sentiment was buoyed, with notable movements including Nvidia's fluctuating stock and Eli Lilly's 8% rise due to strong earnings.

BHP Group Ltd., the world's leading mining company, is seeking to sell its Brazilian copper and gold assets acquired through the Oz Minerals Ltd. takeover in May 2023. This decision follows a strategic review of these assets, and BHP has hired Banco Santander SA to advise on the potential sale. The acquisition of Oz Minerals was BHP's largest deal in over a decade, aimed at increasing its exposure to materials essential for clean energy and electric vehicles. Despite this, BHP is focusing on developing a copper hub in South Australia and has no plans to sell its stake in Samarco Mineracao SA, an iron ore producer jointly owned with Vale SA.

China's central bank, the People's Bank of China (PBOC), refrained from purchasing gold for the third consecutive month in July, maintaining its gold reserves at 72.8 million fine troy ounces. Despite the unchanged quantity, the value of these reserves increased to $176.64 billion due to rising gold prices, which have surged 16% this year. Analysts suggest that the PBOC's pause is due to elevated gold prices, and purchases may resume if prices decline. The PBOC remains a significant player in the gold market, having been the largest buyer in 2023, but its current strategy reflects caution amid high prices.

As of the end of July 2024, London vaults held 8,651 tonnes of gold, valued at $674.9 billion, marking a 0.6% increase from the previous month. This equates to approximately 692,103 gold bars. Additionally, 26,618 tonnes of silver were stored, valued at $24.4 billion, representing a 1.8% increase, or about 887,279 silver bars. These figures highlight London's crucial role in supporting the physical over-the-counter (OTC) market. The monthly publication of these data points reflects a commitment to greater transparency and timeliness in the precious metals market.

Despite gold's reputation as a safe haven and its significant price increase over the years, most discretionary fund managers maintain minimal exposure to it. Asset Risk Consultants (ARC) found that approximately 75% of managers have either no exposure to gold or allocate less than 2.5% of their portfolios to it, with none exceeding a 10% allocation. This low exposure persists even though gold prices have surged to record highs amid geopolitical uncertainties. The positive sentiment towards gold, driven by its recent performance, is not reflected in portfolio weightings, indicating a cautious approach by fund managers.

In July, exchange-traded funds (ETFs) experienced record-breaking inflows, with investors pouring $195 billion globally, surpassing the previous monthly record of $169 billion set in December 2023. This surge was driven by optimism that the U.S. Federal Reserve would soon cut interest rates, creating a favorable market environment. U.S.-listed ETFs received $124 billion, with fixed income ETFs attracting a record $60.5 billion and equity funds $127 billion. Despite a recent market sell-off, investor confidence in ETFs remained strong, with significant inflows continuing even on the worst day of the sell-off.

The United Arab Emirates has temporarily suspended operations at 32 gold refineries, representing about 5% of its gold sector, as part of a crackdown on money laundering. This action is part of intensified inspection campaigns by the Ministry of Economy to combat financial crimes. The suspended refineries were found to have committed 256 violations, including failing to assess risks and check customer databases against terrorism watchlists. This move is part of the UAE's broader effort to improve its financial reputation amid concerns about money laundering and gold smuggling, highlighted by a report indicating that a significant portion of gold imported from Africa was smuggled.