Precious metals news

Private payrolls growth in May fell short of expectations, with ADP reporting an increase of 152,000 jobs, lower than the downwardly revised April figure of 188,000 and below the consensus estimate of 175,000. The services sector drove most of the hiring, while goods producers only added a net of 3,000 jobs to the total. Key sectors such as trade, transportation, and utilities led in job creation, followed by education and health services, and construction.

The dollar gained ground ahead of pivotal U.S. economic indicators, as investors anticipate key data releases and the Bank of Canada's policy meeting, which could initiate a cycle of rate cuts. Eyes are on U.S. services data, with further job figures expected later in the week. Lingering concerns over a softening U.S. economy have fueled speculation for earlier Federal Reserve interest rate adjustments. Meanwhile, the Bank of Canada's meeting coincides with the European Central Bank gathering, amidst slowing annual inflation prompting expectations for a Canadian rate cut. Market sentiment suggests an 80% probability of a rate cut by the Bank of Canada, influencing broader G10 currencies like New Zealand.

Today's market sentiment reflects a broad sell-off, with silver witnessing a notable decline of over 3% as it dips below the $30 threshold. Amidst a flight to safety across various asset classes, precious metals, which have been strong performers recently, are experiencing a overdue correction. This downward movement in silver's price signals a potential pullback that has been anticipated for some time.

The recent softening of US job openings data has fueled a global bond rally, prompting Treasury yields to drop for the fourth consecutive day, hitting 4.32%, the lowest since mid-May. The decline follows a significant slide in April's JOLTS job openings, signaling a potential cooling of the US economy. Traders are now factoring in higher chances of Federal Reserve interest-rate cuts, possibly starting as early as November, with Fed officials likely to address these expectations in their upcoming meeting. Despite indications for a possible September cut, uncertainties remain as the market awaits May's employment report and inflation data. Analysts suggest that the 10-year note's yield may test its low end since April 2, currently at 4.309%, amidst cautious buyer sentiment following last week's yield surge triggered by unexpected inflation data challenging the consensus for Fed rate cuts.

According to the Bureau of Labor Statistics’ latest Job Openings and Labor Turnover Survey, the number of job openings in the US shrank for the second month in a row, setting a new three-year low. As of April, there were an estimated 1.2 available jobs for every job seeker, the lowest ratio since June 2021.

Expectations for ECB rate cuts are weakening due to strong economic data, persistent inflation, and hawkish comments from ECB officials. While some economists still predict gradual reductions, robust euro-zone output and rapid wage growth may limit monetary easing. Traders have adjusted their expectations, influenced by cautious signals from ECB members who suggest fewer cuts might be prudent.

Central banks increased their gold purchases in April, with net acquisitions totaling 33 tons, a significant rebound from the 3 tons recorded in March. The rise in gold reserves was driven by broad buying from emerging market banks, despite minimal sales. This trend follows questions about whether central banks would adjust their buying behavior amid March's rapid gold price increase.

Goldman Sachs analysts view the recent OPEC+ meeting as bearish, highlighting the plan to phase out extra voluntary production cuts as a key concern. Despite various production cut extensions, the gradual unwinding of additional cuts signals potential challenges in maintaining low production, posing downside risks to Brent crude prices within the $75-90 range.

A poll by the National True Cost of Living Coalition reveals that nearly two-thirds of middle-class Americans feel financially strained and do not expect improvement. Despite strong economic indicators, many households face financial insecurity, with 65% of those earning over $60,000 and even 25% of higher-income earners expressing concerns about their financial stability.

Minneapolis Fed President Neel Kashkari shared that through recent discussions, he has learned that people would prefer a recession over enduring high inflation. Speaking on the Financial Times podcast, Kashkari emphasized the deep aversion to soaring prices, a sentiment he noted from conversations with labor groups and workers.

Gold futures rose on Monday, reaching their highest level in over a week as they recovered from Friday's losses. The increase was supported by a weaker U.S. dollar and lower Treasury yields, which make dollar-denominated gold more attractive. August gold on Comex settled at $2,369.30 an ounce, up 1% from the previous session.

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Trading on the NYSE has just been halted due to a ”technical glitch” that sent Berkshire Hathaway to zero, and they’re claiming it’s because of issues with the limit up and limit down bands that are used to halt trading when a stock becomes too volatile. But as ZeroHedge is reporting, it may actually be due to an AI-generated analysis published to Bloomberg terminals that claimed the stock dropped 100% — causing the real-life price to respond, and manifesting the automated report’s false claims into reality:

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A technical glitch at the New York Stock Exchange (NYSE) on Monday caused Berkshire Hathaway's A-class shares to incorrectly appear down nearly 100%, halting trading in these shares as well as in Barrick Gold and Nuscale Power. The NYSE is investigating the issue, related to the limit up and limit down bands designed to control excessive volatility. The exact number of affected stocks is unclear. The Consolidated Tape Association, which provides real-time stock quotes, also reported an earlier failure. Trading in Berkshire Hathaway's B-class shares continued, with a slight decrease of less than 1%.

The Reserve Bank of India (RBI) has relocated over 100 tons of gold from the UK to its vaults in India, marking the first such move since 1991. This significant transfer is part of a plan that may see a similar quantity of gold brought to India in the coming months. Historically, more than half of RBI’s gold reserves were held overseas with the Bank of England and the Bank of International Settlements, but recent logistical efforts, involving extensive coordination with multiple government departments, have successfully returned a portion of these reserves to India.

Stocks ended May on a mixed note as investor enthusiasm for AI cooled and concerns about the Federal Reserve's interest rate policies persisted. Over the past week, the Nasdaq was flat, the S&P 500 rose slightly, and the Dow declined. This week, market attention will focus on labor market updates, including the May jobs report and data on job openings and wage growth. Reports on services and manufacturing activity are also expected. In corporate news, earnings reports from CrowdStrike, Lululemon, and Dollar Tree will be notable highlights.

Alan Greenspan warned on NBC's "Meet the Press" that a further drop in home prices could trigger a double-dip recession. This potential decline in home values, amid an already fragile economy, could erode investor and consumer confidence, further impacting the economy. The housing market is expected to remain unstable, potentially leading to prolonged economic difficulties. It's essential to manage expectations and address factors that could contribute to declining home values to mitigate the risk of a new recession.

The European Central Bank (ECB) and the Bank of Canada (BoC) are expected to cut interest rates this week, providing relief to borrowers in the eurozone and Canada. Market indicators show an 82% probability of the BoC reducing its rate from 5% to 4.75% on Wednesday, following slower-than-expected GDP growth. The ECB is also anticipated to cut its deposit facility rate from 4% to 3.75% on Thursday, with money markets showing a 93% chance of this move. These central banks would join the Swiss National Bank, which cut rates in March, as some of the first major institutions to ease policy amidst persistent inflation concerns.

Debt payments by the 50 countries most vulnerable to the climate crisis have doubled since the start of the COVID-19 pandemic, reaching their highest level in over 30 years. These nations now allocate 15.5% of government revenues to external creditors, up from less than 8% before the pandemic. Debt Justice, citing data from the World Bank and IMF, highlights the urgent need for comprehensive debt relief to enable these countries to address the climate crisis effectively. The charity's executive director, Heidi Chow, emphasized that record debt levels are hampering the ability of these countries to combat the climate emergency.