Precious metals news

The World Gold Council is back with gold demand trends for 2023. Last year, gold demand reached a record high, driven by strong central bank purchases and sustained jewelry demand, despite significant outflows from Exchange-Traded Funds (ETFs). The total annual gold demand, excluding over-the-counter (OTC) transactions, was 4,448 tons, slightly lower than the robust demand seen in 2022. However, including substantial OTC and stock flows, which amounted to 398 tons, the total demand for gold in 2023 escalated to an unprecedented 4,899 tons.

The Federal Reserve is signaling a cautious approach to adjusting interest rates, emphasizing the economy's resilience and the potential risks of re-igniting inflation. Despite the market's anticipation for rate cuts, the Fed's stance remains grounded in ensuring sustained economic health and stability. This decision comes amidst a backdrop of robust economic growth and consumer confidence, suggesting a strategic patience in monetary policy adjustments.

An International Monetary Fund (IMF) official highlighted concerns over potential 'disorderly' sovereign debt defaults due to delays in the debt restructuring processes for low-income countries. The G20's Common Framework, aimed at facilitating these processes, faces criticism for its slow pace and disagreements among creditors. The IMF's call for acceleration comes amid rising defaults and challenging economic conditions in several countries.

The Federal Reserve is anticipated to maintain current interest rates at its Wednesday meeting, with investors keenly observing for hints of future reductions. Speculation exists that the Fed might adjust its statement to reflect a neutral stance, potentially setting the stage for rate cuts. There's also anticipation around Fed Chair Jerome Powell's press conference, where he may begin to set expectations for easing monetary policy, while managing market predictions about the extent and timing of these changes.

Following an 8% correction at the start of 2024, silver has captured investor attention as a long-term value play. The March Silver contract is highlighted for its potential upside, attributed to China's economic recovery measures and the anticipation of U.S. interest rate cuts. With silver's high beta nature and its historically low valuation compared to gold, the metal presents a compelling case for investment ahead of potential market shifts.

Ten-year Treasury yields have dropped towards 4%, the lowest in two weeks, amid expectations of potential interest rate cuts by the Federal Reserve. This comes as the U.S. sees signs of strong economic growth, low unemployment, and inflation nearing the Fed's target. The market's optimism is also buoyed by substantial earnings from U.S. megacaps, with the S&P 500 nearing new milestones. However, contrasting fortunes are seen in China, where market sentiment wanes amidst ongoing real estate challenges.

Barry Sternlicht, the billionaire CEO of Starwood Capital, has forecasted a massive $1 trillion loss in the U.S. office market, attributing the decline to the permanent shift towards remote work post-COVID-19. According to Sternlicht, the U.S. office market, previously valued at $3 trillion, has plummeted to around $1.8 trillion. He described this downturn as an "existential crisis" for the office segment of the commercial property market and criticized the Federal Reserve for exacerbating issues within capital and real estate markets.

Amid escalating tensions in the Middle East, gold and silver prices have seen a notable surge. Gold opened on the Multi Commodity Exchange at Rs 62,397 per 10 grams, while silver started at Rs 72,418 per kg. Analysts predict gold may trade between $2,020 and $2,040, with silver following suit in its price bracket, indicating heightened investor interest in precious metals as safe-haven assets during geopolitical uncertainties.

Gold prices are on track to mark their first monthly decline in four, as expectations for early U.S. interest rate cuts wane ahead of the Federal Reserve's policy decision. Spot gold hovered around $2,037.30 per ounce, reflecting a modest drop of 1.2% for the month, amidst reduced bets for a March rate cut by the Fed. The precious metal's performance this month contrasts sharply with its record high in December, driven by previous rate cut speculations.

Central bank gold demand continued to be strong in the fourth quarter, pushing the total to over 1,000 metric tons for the year.  Compare this to the Gold ETF net outflows of 244 metric tons over the same period...

JPMorgan Chase CEO Jamie Dimon has raised an alarm over the burgeoning U.S. national debt, warning of a potential global market rebellion. As of now, the U.S. national debt stands at a staggering $34.14 trillion, roughly amounting to $100,000 per person in the country. Despite the debt ceiling being suspended until 2025, Dimon expressed grave concerns about the long-term economic implications during a panel discussion at the Bipartisan Policy Center.

In an unexpected turn, the Euro Zone managed to avert a recession in the latter half of 2023, thanks to stronger economic performance in Italy and Spain. This development counterbalanced Germany's economic difficulties, allowing the Euro Zone to narrowly escape a downturn. The Gross Domestic Product (GDP) remained flat in the last quarter of 2023, narrowly avoiding a recession following a slight decline in the previous quarter. Despite these positive signs, the Euro Zone still faces significant challenges, including high-interest rates, weak foreign demand, and ongoing geopolitical tensions. Economists had initially expected a further decline, indicating the region's persistent struggles in a complex economic landscape.

Samsung's 2024 commodity market outlook suggests a cautiously optimistic view for key commodities. The previous year, 2023, did not meet profitability expectations in the commodity sector, primarily due to more resilient supply chains than anticipated. However, for 2024, the fundamentals for most commodities appear neutral to mildly bullish. Despite concerns over slow economic growth impacting demand, the market could benefit from potentially lower interest rates. Samsung C&T Trading & Investment Group, known for its involvement in various commodities, anticipates diverse performance across its portfolio in the coming year.

The global demand for silver is on an impressive trajectory, with forecasts indicating it could reach a staggering 1.2 billion ounces in 2024. If achieved, this figure would mark the second-highest level of silver demand ever recorded. The surge is primarily driven by an increased industrial offtake, with expectations that this sector will reach new annual highs. However, the short-term outlook suggests some potential challenges. The diminishing likelihood of early U.S. interest rate cuts may exert pressure on investments across the precious metals spectrum, including silver.

Pandora, the world's largest jeweler by product volume, has made a significant shift in its production practices by moving away from mined precious metals. Instead, the company is exclusively using recycled gold and silver. This transition by the Danish company, famed for its charm bracelets priced between $65 and $95, is a sustainability-driven decision. Annually, Pandora consumes about 340 tonnes of silver and one tonne of gold. In 2022, the company's supply chain was responsible for 264,224 tonnes of CO2 emissions, as per its annual report. The switch to recycled metals is expected to reduce Pandora's indirect CO2 emissions by approximately 58,000 tonnes each year, according to Mads Twomey-Madsen, the senior vice president of communications and sustainability at Pandora.

West Texas Intermediate crude experienced a 1.5% rise in a particularly volatile trading session, primarily driven by a surge in algorithmic buying. According to Dan Ghali, a commodity strategist at TD Securities, while this aggressive algorithmic activity has propped up futures, sustaining these higher prices will require more fundamental market drivers. The recent drone attack on U.S. soldiers has escalated tensions in the Middle East, yet, so far, it has had a limited effect on oil supplies. The industry is closely watching the U.S. military's potential response, as noted by Daniel Hynes, a senior commodity strategist at ANZ Group Holdings Ltd., with expectations that it could further influence the market. Adding to the complexity, futures had initially fallen due to concerns over long-term demand, highlighted by Saudi Aramco's decision to abandon plans to increase its crude output capacity, signaling uncertainties about future oil consumption.

The International Monetary Fund (IMF) has revised its global growth forecast for 2024 upwards, now predicting a 3.1% expansion, marking a 0.2 percentage point increase from previous estimates. This optimistic adjustment stems from the resilience demonstrated by the U.S. economy, alongside the effects of fiscal stimulus in China. Additionally, robust performances from major emerging market economies have contributed to this improved global economic outlook. Despite these positive developments, the report does caution about new risks, particularly to commodities and supply chains, arising from escalating volatility in the Middle East. However, a notable silver lining is the quicker-than-anticipated decline in global inflation rates, suggesting a more stable economic environment moving forward.

As the Federal Reserve gears up for its meeting on January 31, 2024, there's a significant shift in expectations due to the improving economic landscape. Inflation rates are nearing the Fed's target, and the economy exhibits robust growth with strong consumer spending and historically low unemployment rates. This positive trend defies earlier recession forecasts, sparking debates on the durability of this economic strength. Federal Reserve officials, grappling with post-pandemic economic assessments, are cautiously contemplating rate cuts. The first cut might occur around May or June, with the exact timing being a primary discussion point at the upcoming meeting.

Valentine's Day is here and you might find yourself buying (or wishing you had remembered to buy) a Valentine’s Day present. A classic romantic present involves gold, diamonds, and sometimes both. And both diamonds and gold seem at first blush to have a lot in common.

China’s 10-Year Yield hit a two-decade low, influenced by the People’s Bank of China's unexpected reduction in the reserve-requirement ratio. This move is expected to release significant liquidity into the market and indicates a potential pivot in China's monetary policy, contrasting with previous conservative stances.