Precious metals news

Global business activity improved this month, especially in parts of Asia and Europe, which may delay central banks' plans to cut interest rates. Borrowing costs had been raised post-COVID to tackle inflation, and there's now speculation about when and how much they might be reduced. Politicians, facing upcoming elections in India, the US, and the UK, may welcome relief for indebted consumers. Despite previous slowdown fears, the global economy is expected to remain strong through 2025, with economists predicting persistent inflation that could influence future rate decisions.

While global petroleum production is at an all-time new high, the RED QUEEN SYNDROME continues devouring the oil industry from within.  Interestingly, the record global oil supply came from NGLs, not crude oil and condensate.  These are five must-see charts. According to the EIA - U.S. Energy Information Agency, total...

Mike Maloney has just made a change to his portfolio, and has made plans for another to come soon. What is Mike doing?

Join Mike Maloney in this in-depth analysis as he confirms a significant breakout in silver, with implications for traders and investors alike.

Copper has gone mad: Liquidated shorts from a flood of speculators, an AI bubble, a supply crisis, and a renewable energy craze have all combined with high global inflation to recently send it to historic all-time highs. While I believe there will be major corrections as some of these factors come back down to earth, the most important one — out-of-control inflation — will ultimately send copper even higher in the longer-term.

Commodities expert Jeffrey Christian dismissed the notion of de-dollarization as a "myth," asserting that there is no significant shift away from the US dollar despite increased rhetoric from countries like Russia and China. Christian emphasized that the fear of the dollar being displaced as the dominant global currency is unfounded, labeling the idea as a persistent but baseless concern.

The dollar strengthened on Wednesday as investors awaited the Federal Reserve's meeting minutes for clues on the future of interest rates, while the British pound stabilized following data showing a drop in UK inflation in April. Despite a milder U.S. inflation reading last week, Fed officials remain cautious, with Governor Christopher Waller and President Loretta Mester indicating a need for more consistent data before considering rate cuts. The upcoming Fed minutes are expected to shed light on the central bank's stance regarding inflation and potential rate adjustments.

Federal Reserve Chair Jerome Powell and other officials have shifted from providing explicit guidance on interest rate cuts to discussing various economic scenarios amid growing uncertainty in their effort to control inflation. This change highlights the Fed's current unpredictability and focuses on different potential economic outcomes rather than detailed projections. This "scenario analysis" approach is intended to address the complexity of the economic landscape and the Fed's adaptive response strategies.

Oil prices fell to near three-month lows as reports indicated rising US crude inventories, with Brent trading around $82 a barrel and West Texas Intermediate below $78. The American Petroleum Institute reported a 2.5 million barrel increase in stockpiles, contributing to market bearishness. The upcoming OPEC+ meeting will determine whether to extend supply curbs amid a contango market structure signaling increased supply. Despite geopolitical risks, such as recent drone strikes on Russian refineries, oil futures have weakened since mid-April.

Despite concerns about the U.S. economy, the junk-bond market is thriving, with the risk premium for sub-investment-grade debt narrowing to near pandemic lows. This trend, driven by cooling inflation and hopes for interest-rate cuts, has attracted $3.7 billion into junk-bond funds this year. Investors seeking high yields around 8% have fueled $131 billion in speculative-grade bond sales from companies like Block and Icahn Enterprises, significantly up from $71 billion last year.

Gold prices dipped by 0.3% to $2,413.96 per ounce on Wednesday as investors awaited the Federal Reserve's latest meeting minutes for clues on interest rate cuts. After reaching a record high earlier in the week, gold is consolidating its gains. The market remains strong with a buy-on-dip mentality, despite the potential for short-term stagnation without further support from the dollar. Recent economic data suggests a downtrend in inflation, but Fed policymakers are cautious about cutting rates until inflation targets are securely met.

Gold has surged to its highest level ever, surpassing $2,400 per troy ounce, driven by geopolitical uncertainties and significant purchases by global central banks, especially from emerging markets. Despite rising real interest rates, which typically dampen gold's appeal, central banks have bought around 2,200 tons since late 2022, accounting for over a fifth of global demand. This trend highlights gold's allure as a sanctions-proof asset amid geopolitical instability.

Governor Christopher J. Waller delivered welcoming remarks at the Third Conference on the International Roles of the U.S. Dollar, hosted by the Federal Reserve Board in Washington, D.C.

A recession appears imminent, with 19 states already showing signs of economic distress, warns economist Nancy Lazar. These states, which contribute 40% of the US GDP, have seen a 0.5 percentage point rise in unemployment over three months, historically a precursor to nationwide recessions. Lazar points to the delayed effects of Federal Reserve rate hikes and tightened credit as key factors, noting that such conditions typically lead to a hard economic landing.

Gold and silver prices continue to hover near record highs amid rising geopolitical tensions. Both gold and silver futures reached record levels last week and remain strong as global uncertainty persists. Yahoo Finance Senior Markets Reporter Jared Blikre discusses these movements and their implications for the commodity market.

The Biden administration released a memo outlining its efforts to combat inflation and blaming Republicans for hindering these actions. The memo emphasizes President Biden's focus on reducing costs and fighting corporate price gouging, despite inflation still being a concern. It highlights that while the economy and labor market are strong, Biden struggles to receive credit for economic progress, with former President Trump polling better on economic issues. The memo argues that inflation would worsen under Trump's policies, and it details steps taken to address price gouging by companies.

Amid ongoing high food prices, many Americans are accumulating debt to afford groceries. Elevated costs have led families to use savings, credit cards, buy now, pay later programs, or payday loans, as highlighted by new Urban Institute research. Although these methods provide immediate relief, they can cause financial instability. Kassandra Martinchek from the Urban Institute notes that while food price increases are slowing, households still face higher grocery bills than last year, leading them to rely on financial sources beyond their income to meet basic needs.

The recent rally in gold prices has puzzled wealth managers due to its disconnect from the typically correlated US dollar and inflation-adjusted US Treasury yields. A significant factor behind this anomaly is the unprecedented rate at which central banks have been increasing their gold reserves since early 2022 to mitigate the risk of western sanctions. With gold trading at all-time highs, investors like Chris Forgan from Fidelity are questioning whether the current price levels are justified.

Oil prices dropped by more than $1 on Tuesday as concerns over prolonged high U.S. interest rates, driven by persistent inflation, led to fears of weakened consumer and industrial demand. Brent crude fell to $82.17 a barrel, and U.S. West Texas Intermediate (WTI) slipped to $78.31 for June. The more active July contract also decreased. The decline follows statements from Federal Reserve officials indicating that more signs of slowing inflation are needed before considering rate cuts.

Federal Reserve Governor Christopher Waller stated that while recent data indicates inflation is easing and further interest rate hikes may not be needed, he requires several months of positive inflation data before supporting any rate cuts. Speaking at the Peterson Institute for International Economics, Waller noted the impact of higher rates on reducing demand and cooling the labor market, but remains cautious about reducing rates prematurely.