Precious metals news

Is the world's largest silver mining company's future supply in jeopardy?  And, when I say in jeopardy, is growth over with further declines on the horizon?  I was quite surprised by what I found, which now seems to confirm why Fresnillo PLC's share price continues to underperform...

Chicago Federal Reserve President Austan Goolsbee stated that the central bank is prepared to address any signs of economic weakness, emphasizing the Fed's commitment to maximizing employment, stabilizing prices, and maintaining financial stability. He noted that interest rates might currently be too restrictive but did not commit to an emergency rate cut. Goolsbee's comments came amid market turmoil triggered by a disappointing July jobs report, which raised recession fears and led to significant stock market declines. Despite the weak job numbers, Goolsbee expressed that the economy is not yet in a recession but highlighted the need for a forward-looking approach in policymaking.

The Bank of Japan's June policy meeting minutes reveal a growing hawkish sentiment among board members, with at least two calling for an early interest rate increase. Discussions focused on the yen's weakness pushing up inflation and the need for close attention to currency movements in monetary policy decisions. These concerns led to the BOJ's July decision to raise interest rates to 15-year highs. However, the recent sharp appreciation of the yen to a 7-month high may influence future rate hike decisions. Markets are now looking to Deputy Governor Shinichi Uchida's upcoming speech for clues on the pace of future rate increases, with some economists expecting a more gradual approach to tightening.

The CBOE Volatility Index (VIX), often called the "fear index," surged to its highest level since March 2020, reflecting intensifying anxieties in global markets. This spike was triggered by a weaker-than-expected U.S. jobs report, which raised concerns about a slowing economy. The VIX climbed 142% to $56.55, nearly doubling its previous 52-week high. This volatility was mirrored in global stock markets, with Japan's Nikkei 225 experiencing its worst day since the 1987 Black Monday crash, and U.S. futures showing significant declines across major indices. The market reaction highlights growing fears about economic stability and potential recession risks.

Jeremy Siegel, a professor at the Wharton School, is advocating for aggressive interest rate cuts by the Federal Reserve. He suggests an immediate 75 basis point emergency cut, followed by another 75 basis point reduction at the September meeting. Siegel argues that the target federal funds rate should be between 3.5% and 4%, significantly lower than the current 5.25% to 5.5% range. This recommendation comes in response to current economic conditions and suggests a dramatic shift in monetary policy.

Gold prices fell by as much as 1.2% in early Asian trading on Monday, driven down by a global stock market selloff that overshadowed concerns about rising tensions in the Middle East. Spot gold dropped towards $2,425 an ounce as Asian shares tumbled, reflecting fears of a deepening U.S. economic slowdown and potential delays in Federal Reserve interest rate cuts. Despite the drop, gold remains one of the top-performing commodities this year, bolstered by central bank purchases and expectations of rate cuts. However, the current market volatility has led investors to liquidate gold positions to cover losses in other assets.

Global stock markets experienced a significant sell-off, triggered by concerns about a potential slowdown in the U.S. economy and uncertain global monetary policy. The Nasdaq, S&P 500, and Dow Jones Industrial Average all saw substantial declines, with tech stocks particularly hard hit. This market turmoil followed disappointing U.S. jobs data and an unexpected interest rate hike in Japan. Investors are worried that the Federal Reserve may have delayed rate cuts too long, risking a recession. The sell-off has spread across Asian and European markets, reflecting growing anxiety about global economic growth and monetary policy directions.

Silver prices plunged more than 5% on Monday, falling below $28.00 per ounce, due to fears of a global economic slowdown. Weaker-than-expected US employment and manufacturing data have heightened concerns about a recession, prompting investors to liquidate silver positions to cover stock market losses. Despite expectations of Federal Reserve rate cuts, which usually support precious metals, the pressure from the broader market selloff overshadowed these factors. The decline in US bond yields and the dollar also failed to lift silver prices, which reached their lowest level in nearly three months.

Gold prices experienced a significant drop on Monday, falling as much as 3.2%, in response to a major global stock market selloff. The decline is attributed to traders liquidating gold positions to cover margin calls on stock losses. Despite this setback, gold remains up about 15% for the year, supported by factors such as central bank buying, Asian consumer demand, and geopolitical tensions. Analysts suggest that this drop is likely temporary, with investors expected to repurchase gold once market volatility subsides.

Gold prices have reached record highs in 2024, with spot gold ending at $2,443.29 an ounce on August 2. While overall demand has increased, the surge in prices may be impacting consumer buying patterns. The World Gold Council's quarterly report shows a significant rise in institutional investor demand, but a decline in jewelry consumption and official coin purchases. This shift suggests that while gold remains attractive for portfolio diversification, high prices may be deterring traditional consumer demand, potentially leading to a slowdown in overall demand in the coming quarters.

Global financial markets experienced a significant selloff as investors grappled with mounting concerns about the U.S. economy and other potential risks. The downturn affected stock markets worldwide, with U.S. futures, particularly the Nasdaq, showing substantial declines. Asian markets were hit hard enough to trigger circuit breakers, while European markets also saw losses, albeit less severe. The heightened uncertainty led to increased bets on central bank rate cuts and caused the Cboe Volatility Index, known as Wall Street's "fear gauge," to surge to levels not seen since the early days of the pandemic.

With the U.S. unemployment rate finally rising, it looks like the recession has finally arrived.  This will likely lead to a broader market selloff, which will bring down other assets with it, especially Bitcoin, as the carnage continues this weekend...

The much-awaited "Whistlin Diesel" Tesla Cybertruck durability Test was released yesterday... and what an absolute "Riot."  The Host of Whistlin Diesel put the Tesla Cypertruck & Ford F-150 pickup up against some brutal bone-crushing tests.  This is a MUST-WATCH. I have heard about this Tesla Cybertruck vs. Ford 150 Durability...

CME Group reported a record average daily volume (ADV) of 24.8 million contracts for July 2024, a 24% increase from the previous year. The surge in trading activity reflects robust demand for risk management tools amid global economic uncertainties.The report indicates that there was a significant increase in gold options trading, which suggests that many investors are feeling optimistic (or "bullish") about gold prices rising.

Americans are adjusting their dining habits in response to ongoing inflation, with many opting to cook at home rather than eat out. While grocery prices have increased by 1.1% in the past year, restaurant meal costs have risen by 4.1%. This disparity has led to a decline in sales for fast-food chains and restaurants, with McDonald's reporting its first sales drop since the 2020 pandemic shutdowns. Consumers are now more likely to splurge on groceries for home-cooked meals rather than dining out, prompting restaurants to offer more deals and meal combos to attract customers. This shift in consumer behavior reflects the cumulative impact of price increases since mid-2020, with grocery costs up 19% and restaurant prices up 24%.

The Dow Jones Industrial Average plummeted 760 points on Friday, driven by recession fears and disappointing earnings reports, following a 494-point drop on Thursday. Intel's stock, in particular, plunged 28.8% after a poor earnings report, contributing significantly to the Dow's decline. This marked Intel's largest one-day drop since 1974, shaving about 55 points off the Dow's total. The broader market selloff reflects growing concerns about the economic outlook and potential recession.

Morgan Stanley predicts that gold prices will soar to $2,600 per ounce by the fourth quarter of 2024, driven by central bank purchases, increased retail demand, and global geopolitical turmoil. Despite a 50% rise from 2022 lows and a 25% increase since mid-February, gold's appeal as a safe-haven asset continues to grow. Factors such as central banks from developing nations increasing their reserves, robust retail and institutional investment, and ongoing global conflicts are expected to propel gold prices higher. Additionally, economic uncertainties and potential US rate cuts further support this bullish outlook.

Gold prices have resumed their upward trajectory, reaching the anticipated target of $2,483.40. This level is crucial, as breaking through it could propel the price to the next significant milestone of $2,500.00. However, if the current bullish trend fails to maintain momentum, it could trigger substantial sell-offs, potentially pushing the price down to $2,420.00 or even $2,380.00. Investors and traders are closely monitoring these key levels to determine the precious metal's next move in this volatile market.

China's sluggish economic recovery, marked by a protracted property market downturn and high job insecurity, is impacting global corporate growth. Major companies like Starbucks, General Motors, and various tech firms have reported challenges due to weak consumer spending and ineffective stimulus measures. China's economy grew slower than expected in Q2 2024, with retail sales hitting an 18-month low. Despite government efforts to stimulate consumption, concerns persist about prolonged stagnation and deflation risks, making the Chinese market less reliable for global businesses.

China's bond yields have fallen to record lows, with the 10-year bond yield dropping to 2.13% and the 30-year note yield to 2.37%, despite repeated warnings from the People's Bank of China (PBoC) about a potential bubble in the sovereign bond market. Investors are responding to deflationary pressures and weak economic indicators in China, including slowing growth, declining manufacturing activity, and near-zero inflation. The PBoC is struggling to convince traders that the market is overheating and has indicated its readiness to intervene, but investors continue to bet on further yield declines as they anticipate more economic stimulus measures.