Precious metals news

Kristina Hooper, Invesco's chief global market strategist, believes multiple rate cuts could be possible in 2024. Despite disappointing existing home sales data, Hooper remains optimistic about potential rate cuts in 2024, suggesting the possibility of two or even three cuts. Hooper attributes the current tech sector rotation to anticipation of these rate cuts, which could prevent an economic downturn and lead to re-acceleration, benefiting cyclically sensitive stocks.

Despite higher prices due to inflation, global demand for Coca-Cola's beverages remained robust, with unit case volume up 2% and pricing up 9%. Coca-Cola reported strong second-quarter results, beating Wall Street estimates with a 3% revenue growth to $12.4 billion and a 7% increase in earnings per share to $0.84. CEO James Quincey attributes the success to strong strategy execution and notes that inflation is normalizing in most markets. As a result, Coca-Cola has raised its full-year guidance, expecting organic revenue growth of 9% to 10%.

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Goldman Sachs remains bullish on gold, driven by expectations of potential Federal Reserve rate cuts and strong, consistent demand from China. Despite rising U.S. interest rates, which typically lower gold prices, structural changes in the Chinese market and significant gold purchases by China's central bank are creating a robust outlook for gold. Goldman Sachs forecasts gold prices to reach $2,700 by 2025, supported by central bank buying and anticipated Western capital inflows due to potential rate cuts.

Gold has been outperforming the S&P 500 in recent months, defying its traditional role as a hedge against market downturns. This unusual behavior is attributed to bearish bets against a concentrated market, central bank actions, and increased interest from sovereign wealth funds and countries seeking alternative stores of value. Despite its atypical performance, gold remains an attractive investment option due to its diverse appeal beyond traditional hedging purposes, making it a useful tool in investment portfolios.

Global markets have stabilized following Joe Biden's withdrawal from the U.S. presidential race, with investors shifting their focus to corporate earnings and economic data. While Biden's exit has introduced uncertainty about a potential Republican victory under Donald Trump, markets are now in a holding pattern as they await further developments. Investors are particularly interested in upcoming earnings reports from major tech companies and how polling data might affect market volatility and equity performance.

Rising prices of feminine hygiene products, outpacing even food inflation, are forcing many American women to make difficult choices between purchasing menstrual supplies and other essential items. This price increase has led to a significant decline in sales of pads and tampons since 2020, with unit sales dropping by 12% and 16% respectively. Major manufacturers like Procter & Gamble have reported decreased sales volumes due to price hikes, highlighting the growing challenge for women to afford these necessary products and the lack of affordable alternatives in the market.

Russia's crude oil exports have declined for the third consecutive week, reaching a seven-month low. The four-week average exports have dropped by 620,000 barrels per day since April's peak, with Baltic port shipments decreasing by 41% since mid-June. This reduction is likely due to Russia's improved compliance with OPEC+ output targets and increased domestic refining activity. However, a recent Ukrainian drone attack on a refinery and scheduled maintenance at Ust-Luga port may further impact export volumes in the coming weeks.

The US economy is showing signs of stabilization despite a sluggish first half of the year. While certain sectors like manufacturing and housing are struggling, consumer spending remains resilient. The recent rise in unemployment is largely due to increased labor supply rather than job losses. Inflation is decelerating, which should support real disposable income and consumption. Although near-term recession risks remain low, challenges persist in consumer sentiment and building permits. Overall, the economy appears to be transitioning to a more sustainable growth rate, albeit with some bumps along the way.

Restaurants in Turkey's holiday towns are struggling this summer as soaring inflation, reaching 91% in some areas, drives both locals and tourists away. Social media posts highlight exorbitant prices in Turkish resorts, while a fast-track visa program has facilitated a significant increase in Turkish visitors to Greek islands. The devaluation of the Turkish lira has eroded purchasing power, leading to a decline in business for many eateries, despite some restaurants seeing a shift in clientele from higher-income segments.

CrowdStrike's recent outage, affecting 8.5 million Windows devices, has caused widespread disruptions across industries, particularly in air travel. The company warns of hackers exploiting the situation by distributing malware disguised as a fix. As CrowdStrike works to resolve the issue, its stock has plummeted, and the company faces scrutiny from lawmakers. The incident has severely impacted airlines, especially Delta, leading to thousands of flight cancellations and ongoing travel disruptions.

India has significantly reduced import duties on gold and silver from 15% to 6%, aiming to boost retail demand and combat smuggling in the world's second-largest bullion consumer. This move is expected to create a more level playing field for industry stakeholders and potentially increase global gold prices. However, it may also widen India's trade deficit and pressure the rupee. The decision led to an immediate drop in local gold prices, which could stimulate demand that had been suppressed by record-high prices earlier in the month.

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Gold prices dipped on Monday as traders processed President Joe Biden's decision to withdraw from the 2024 presidential race. Spot gold fell below $2,400 an ounce, as the uncertainty surrounding the election boosted gold's appeal as a safe-haven asset. Meanwhile, concerns about declining demand in Asia and potential liquidations also weighed on prices. Despite these fluctuations, gold has surged over 15% this year, supported by expectations of U.S. interest rate cuts and geopolitical tensions.

Global bond markets are facing increasing pressure due to a combination of rising government debt loads and unpredictable election-year politics. Recent events, such as Macron's surprise election call in France and Trump's strong performance in the US presidential debate, have triggered bond market tremors. These incidents highlight the growing concern about governments' ability to manage their expanding debt, which is expected to reach a record $56 trillion this year.

Hedge funds have significantly increased their bullish positions on gold, reaching a four-year high, as reported by Bloomberg. This surge in gold investments is driven by growing concerns over the upcoming U.S. presidential election and uncertainty surrounding the timing of interest rate cuts. The trend is further evidenced by gold prices hitting an all-time high of $2,483.73 per ounce on Wednesday, as investors seek safe-haven assets amid geopolitical risks and anticipate more aggressive monetary easing by the U.S. Federal Reserve.

Oil prices fell on Monday following President Joe Biden's announcement that he will not seek re-election. Brent crude and U.S. West Texas Intermediate crude futures both saw declines, with market analysts suggesting that the potential for rate cuts could impact oil demand. Despite Biden's exit not being a major factor for oil markets, the broader economic implications of high interest rates and potential recession risks continue to weigh on investor sentiment.

The possibility of a recession in the United States remains a concern, despite efforts by the Federal Reserve to stabilize the economy through increased interest rates. While there are no immediate signs of serious recession risk, concerns persist about consumer spending's ability to sustain economic growth. Despite expectations of a soft landing with slow GDP growth, factors such as stubborn inflation, high interest rates, increasing debt delinquencies, and rising unemployment rates (4.1% as of June 2024) make it difficult to predict the economy's ultimate trajectory.

Zambia, Africa's second-largest copper producer, aims to increase its annual copper production by over 40% to reach 1 million tons by 2027, according to the country's Finance Ministry. This growth strategy is part of a larger plan to capitalize on the anticipated global copper supply shortage driven by increasing demand from the energy transition sector. Despite facing recent challenges that led to a 14-year low in production in 2023, Zambia plans to resolve issues at major mines, develop new projects, and expand existing facilities to achieve this goal. The country's long-term vision includes quadrupling copper output to 3 million tons by 2031.

Jamie Dimon, CEO of JPMorgan Chase, has advised the Federal Reserve to hold off on cutting interest rates, expressing concerns that inflation could resurge. Dimon's stance contrasts with the Fed's current trajectory, which suggests a potential rate cut in September 2024. Dimon believes that while inflation has been decreasing, the risk of it rising again remains significant, and premature rate cuts could destabilize the economy.