Precious metals news

While demand for silver bullion continues to be very weak, the long-awaited Silver Breakout finally occurred.  So what's next?  It was surprising to see how quickly the Silver price hit $27, but what happens when it reaches the next important level? IMPORTANT UPDATE:  Due to visiting and assisting a very...

JPMorgan suggests that the anticipated U.S. recession might be postponed until 2025, as indicated by stronger-than-expected manufacturing activity in March. The ISM manufacturing index, which measures the health of the manufacturing sector, rose above the pivotal 50-point mark for the first time since September 2022, signaling expansion and ending a 16-month period of decline. This resurgence in factory activity, driven by sustained demand for goods and a rebound in production, is seen by JPMorgan analysts Ellen Wang and Andrew Tyler as further proof of a global manufacturing recovery.

Nobel laureate economist Paul Krugman acknowledges that while the U.S. dollar's preeminent position as the primary global reserve currency won't last indefinitely, concerns about its imminent replacement are overstated. Currently, there are no viable alternatives to the dollar, which sustains its dominance in the financial markets. The speculation about rapid de-dollarization, according to Krugman, is largely exaggerated, as the greenback continues to be the preferred currency due to the lack of comparable options.

Federal Reserve officials, typically seen as having different views on monetary policy, agree that three interest rate cuts this year would be reasonable. Despite stronger economic data casting doubt on such moves among investors, Cleveland Fed President Loretta Mester and San Francisco Fed President Mary Daly support the idea, following their votes to maintain rates between 5.25%-5.5% to control inflation. Daly notes that there is no rush to adjust rates given the current state of the economy, with inflation gradually declining, and persistent strength in the labor market and overall growth. Fed projections from March indicate a consensus towards three rate cuts, although nearly half of the officials anticipate two or fewer reductions this year.

This week Peter returned from vacation, and he was just in time for a surge in the price of gold. He discusses the factors contributing to gold’s record prices, the similarities between today and the 1970s, and data pointing to future inflation in America.

Even the mainstream is starting to acknowledge the massive problem of vacant office buildings littering American cities, slowly turning them into post-Covid wastelands. While a few pundits are claiming (in somewhat Orwellian fashion) that the surge in empty commercial real estate is actually a chance for a utopian turnaround in the ashes of Covid weirdness, the potential for an “Urban Doop Loop” triggered by CRE is now being widely acknowledged as a possible trigger for a broader economic meltdown.

Join Mike Maloney and Tavi Costa from Crescat Capital as they delve into the silver market’s explosive breakout and its implications for investors.

Gold prices have surged to a record high, marking their seventh consecutive day of gains and defying the broader market slump. On Wednesday, continuous-contract gold futures rose by 0.5%, reaching an all-time peak of $2,308.80 per troy ounce. This year alone, gold has climbed 10.5%, with a 3.5% increase over just the past five days, contrasting sharply with declines in the stock and bond markets where indices like the Dow Jones and S&P 500 have retreated from their peaks. Analyst Achilleas Georgolopoulos from XM highlights gold's "unprecedented strength," noting its ability to rally under various market conditions, including those that would typically hinder its performance. This phenomenon raises concerns among some analysts, suggesting caution after such an extended period of gains.

Gold prices reached a new zenith on Monday, continuing their upward trajectory fueled by expectations of a U.S. Federal Reserve rate cut and the enduring allure of gold as a haven during uncertain times. The spot price of gold climbed 0.6%, reaching $2,245.79 per ounce, while U.S. gold futures surged over 1% to $2,266.39 per ounce. Joseph Cavatoni, a market strategist at the World Gold Council, described this as a thrilling time for gold, attributing the rally to growing investor confidence in the anticipated Federal Reserve cuts. Market observers are keenly anticipating rate reductions by the U.S. Federal Reserve, possibly in May or June, further stoking the bullish sentiment in the gold market.

Peter Spina from Goldseek.com reports an unprecedented surge in the silver futures market, marking the highest daily trading volume in two years. A staggering 650+ million digital ounces of silver exchanged hands, translating to approximately $17 billion in liquidity across 130,000 contracts. This significant uptick in trading activity raises the question: Is silver poised for a major move in the near future?

The Biden administration has decided against proceeding with its plan to replenish the Strategic Petroleum Reserve (SPR) due to the current high oil prices. This decision was influenced by the desire to prioritize taxpayer interests, particularly in not purchasing up to 3 million barrels of oil for the Louisiana SPR site as previously planned for August and September. This change of course comes as oil prices have surged, with the US benchmark West Texas Intermediate exceeding $85 a barrel for the first time since October. Despite aiming to buy oil at or below $79 a barrel to refill the reserve, the administration's most recent acquisition cost an average of about $81 per barrel. The Energy Department stated it would delay further purchases, waiting for more favorable market conditions, and continue to monitor the situation closely.

In February, central banks globally continued to increase their gold reserves, adding 19 tonnes (t) to their stockpiles, marking the ninth consecutive month of growth. However, this was a 58% decrease from January's addition of 45t, primarily due to a mix of slower purchases and increased sales. Despite this slowdown, the year-to-date figures show a significant accumulation of 64t in the first two months of the year. While this is 43% less than the same period in 2023, it represents a fourfold increase compared to 2022. Emerging market banks, particularly in China and India, are the main drivers of this demand. The slight dip in February's accumulation pace has not significantly altered the overall upward trend of central banks bolstering their gold reserves.

In March climbed to unprecedented highs over $2,200 per ounce. But this milestone wasn't solely attributed to geopolitical tensions, which historically have spurred such surges. This deviation suggests a unique bull market for gold, indicating broader economic forces at play beyond the usual conflict-driven rallies. This situation hints at a deeper, more structural shift in the gold market, potentially heralding a new era for gold investing that’s driven by factors beyond immediate geopolitical crises.

Discover the hidden dangers lurking in today’s stock market and learn essential strategies to safeguard your investments.

In China, several gold shops have suddenly vanished, along with the gold they were supposed to deliver to customers, sparking a frantic search by both police and the affected clients to locate the missing stores and recover the vast amounts of gold.

Gold prices have soared to a new all-time high of over $2,250 an ounce, marking a 38% increase from its 2022 low. Some experts, like Tim Hayes of Ned Davis Research, say this surge in gold prices is seen as even more bullish than the current positive trends in stocks. However, others advise that gold should serve as a diversification tool rather than a primary investment in portfolios. Notably, Warren Buffett, a prominent investor, traditionally avoids gold, underscoring its distinct role compared to stocks or bonds.

Gold prices have continued to rise for the sixth consecutive day, nearing the record highs set just the day before, around $2,265-$2,266. This surge is happening against a backdrop of increasing doubts about the Federal Reserve's potential to lower interest rates three times within the year, spurred by positive U.S. manufacturing data. Additionally, escalating geopolitical tensions in the Middle East are dampening investors' willingness to engage with riskier assets, further boosting gold's appeal as a safe-haven asset amidst a stronger U.S. dollar and a generally softer risk sentiment in the market.

The discrepancy between the Federal Reserve's favored inflation metric, the Core Personal Consumption Expenditures (PCE) index, and the more commonly followed Consumer Price Index (CPI) has reached one percentage point difference, largely due to divergent approaches in calculating housing costs. This gap widens to 1.5 percentage points when focusing solely on shelter expenses, although this is partially balanced out by other factors. A recent analysis by Wells Fargo's economists, Sarah House and Aubrey George, delves into these variances, highlighting the significant impact of how shelter costs are factored into these crucial economic indicators.

U.S. crude futures reached $85 for the first time since October, driven by a mix of OPEC+ production cuts, sustained strong demand, and rising geopolitical tensions. The surge saw West Texas Intermediate (WTI) futures climb by up to 1.8% in New York, with the global Brent benchmark closely approaching $89 a barrel. This price jump is attributed to the effective market tightening by OPEC and its allies, alongside enduring high global consumption levels.

Silver, often dubbed the "poor man's gold," is on the brink of a significant technical breakout, mirroring the momentum gold has recently experienced. The recent surge in gold prices, achieving new highs, sets a compelling backdrop for silver's potential breakout. The extended consolidation period silver has undergone hints at a significant upside once it overcomes resistance. This could not only propel silver towards the $30 mark again but, more ambitively, drive it towards its historic high of $50, catalyzed by technical buying reflective of its prolonged accumulation phase.