Precious metals news

In April 2024, the World Bank's precious metals price index climbed 9%, with gold reaching a nominal record of $2,331 per troy ounce. This rise is driven by strong demand from emerging markets and developing economies (EMDEs) amidst geopolitical uncertainties, with central banks in China, India, and Turkey leading the charge. While silver and platinum also saw price increases due to industrial demand and supply constraints, sluggish industrial activity in major economies poses a potential downside risk. Overall, gold is expected to maintain its upward trend, supported by robust central bank buying and safe-haven demand.

Base metal prices, including copper and aluminum, are climbing due to the London Metal Exchange's ban on Russian metals and growing concerns over mine supply. Copper nears a two-year high at $10,395 per ton, driven by supply issues like the closure of the Cobre Panama mine and slower production growth. However, analysts caution that these disruptions alone don't fully explain the price surge, and potential risks, such as changes in U.S. dollar strength and Chinese demand, could impact the market.

JPMorgan CEO Jamie Dimon warns that inflationary forces are poised to keep interest rates elevated longer than investors expect, citing pressures from green initiatives, military spending, and fiscal deficits. Despite stock market optimism from cooling inflation, Dimon cautions that persistent high rates and potential stagflation could stress real estate and leveraged companies, challenging the rosy outlook many currently hold.

High interest rates are disproportionately impacting low- and moderate-income families, causing more Americans to fall behind on credit card and auto loan payments. As borrowing costs rise, monthly interest expenses have soared, pushing financially strained families closer to the edge. Fed officials have indicated that they expect to keep interest rates at their current level, so these folks won't likely see any relief soon.

U.S. stocks opened higher with the Dow Jones Industrial Average approaching the 40,000 mark, driven by record highs from all major indices following a favorable inflation report. The positive sentiment is bolstered by expectations of potential interest-rate cuts from the Federal Reserve.

Federal Reserve Chair Jerome Powell indicated that the central bank is unlikely to raise interest rates despite persistent inflation, expressing cautious optimism that price pressures will soon ease. Speaking in Amsterdam, Powell emphasized the preference for maintaining the current rate rather than increasing it, though he acknowledged that his confidence in inflation cooling has diminished.

Join Mike Maloney in this enlightening discussion on “What Is Driving Gold & Silver Prices?”

While the gold price reached new highs, the costs continued to increase for the gold mining industry. In this update, I added some of the mid-cap gold mining companies, and which one I believe is the Big Winner vs the Big Loser...

U.S. Treasury yields fell on Wednesday after monthly consumer inflation data came in lower than expected. The yield on the 10-year Treasury dropped 10 basis points to 4.346%, while the 2-year Treasury yield decreased by nearly 9 basis points to 4.734%.

US wholesale inflation surged to its highest rate in a year in April, with the Producer Price Index (PPI) rising 2.2% year-over-year, surpassing March’s revised 1.8%. Monthly, prices increased by 0.5%, outpacing expectations. This trend suggests rising producer prices may soon impact consumer inflation, potentially keeping interest rates elevated for longer, as noted by Fed Chair Jerome Powell.

American car owners are facing a wall of bad debt to finance vehicles they can’t afford — especially pandemic buyers who took on huge loans to buy overpriced used vehicles that are now depreciating in value. With inflation running hot and poised to get even hotter if the Fed is forced to cut rates, it turns out that Americans can’t afford to insure those cars either. 

An increasing number of Americans are struggling to keep up with credit card payments, with 8.9% of balances falling into delinquency over the past year, according to the Federal Reserve Bank of New York. Rising costs and high interest rates are putting pressure on consumers, especially those under 30 and in low-income neighborhoods. Nearly 20% of cardholders are "maxed out," using 90% or more of their credit limit, which significantly raises the risk of falling behind on bills.

Gold prices reached a three-week high on Wednesday, driven by a weaker dollar and lower yields after the U.S. consumer price index rose less than expected in April, increasing the likelihood of Federal Reserve interest rate cuts. Spot gold rose 0.4% to $2,367.29 per ounce, and U.S. gold futures rose 0.6% to $2,372.70, as investors anticipated that cooling inflation could lead to rate cuts by September.

The Consumer Price Index (CPI) report for April showed a 0.3% increase from March, indicating that inflation is easing slightly. However, consumer prices are still up 3.4% from a year ago, matching expectations. Core inflation, excluding food and energy, was 3.6%, the lowest since April 2021.

A short squeeze in New York's copper market has driven futures prices to record highs, causing a scramble to ship metal to the US. This surge has resulted in a significant premium for July Comex futures over later months and other global exchanges, prompting traders, particularly in China, to redirect copper shipments to meet delivery requirements.

Peter recently appeared on the Bald Guy Money show for a conversation on gold’s role in American and global politics, the influence of the BRICS coalition on metals markets, and, as always these days, the disastrous monetary policy coming out of the Fed. 

FINALLY... the silver price closed above $29 for the first time in a decade and is now trading at $30.  But what does the Bearish copper chart say about what's next for silver??  While silver closed near the highs today, the copper price fell nearly 4% from its intraday highs...

This week on the Peter Schiff Show, Peter covers a week of dismal economic reports. Both jobless claims and consumer sentiment came in worse than expected last week, with both figures missing predictions by a wide margin. Peter also discusses public statements made by both Joe Biden and Donald Trump on the nature and origin of inflation.

Federal Reserve Chair Jerome Powell stated that inflation is decreasing more slowly than anticipated, necessitating that interest rates remain steady for an extended period. Speaking in Amsterdam, Powell acknowledged the unexpected persistence of inflation and emphasized the need for patience with current restrictive policies, while ruling out further rate hikes.

Gold remains a vital financial asset, especially during times of crisis, and is held by many central banks for its stability and liquidity. This article uses the latest data from GoldHub to reveal which 30 countries have the largest gold reserves as of the first quarter of 2024.