Precious metals news

China's central bank injected 210 billion yuan (approximately $29.52 billion) into the market through seven-day reverse repos at a 1.8% interest rate. This intervention, aimed at stabilizing liquidity in the banking system, reflects ongoing concerns about financial stability towards the month's end.

The Federal Reserve's Vice Chair for Supervision announced that the central bank is considering changes to its regulatory and supervisory guidelines for liquidity management. This reassessment is due to concerns that existing measures may not effectively handle the rapid pace of modern bank runs.

Gold surged to a new record high of $2135 early Sunday morning before pulling back sharply Monday. In this video, Peter Schiff explains why this is a buying opportunity.
After setting the record, gold quickly sold off and consolidated, dropping over $100 back to around $2,020. Some people see the quick selloff as a bearish sign. Peter said he doesn't think so.

We can thank the shale companies for their hard work producing tight oil, which we export nearly half.  Amazingly, the U.S. exports more oil now than what Iran, Kuwait, or the UAE produces.  The U.S. shale industry is exporting the highest-cost oil at bargain-basement prices...

Gold prices, after reaching a record high of $2,100, retreated, with investors anticipating Federal Reserve rate cuts next year. Bloomberg Intelligence's Mike McGlone notes gold is trying to maintain support around $2,000, previously a resistance level. McGlone sees gold in the early stages of a bull market, driven by significant purchasing from central banks.

The Bank for International Settlements (BIS) maintains a cautious outlook on inflation, despite some recent improvements, signaling ongoing challenges for central banks. The BIS underscores the necessity for central banks to adapt to a potentially worsening global economic climate, particularly as rising interest rates begin to strain consumer credit markets, including the burgeoning buy-now-pay-later sector. With the end of ultra-low interest rates, the BIS points to a persisting uncertainty and a possibly difficult road ahead in managing inflation and interest rate levels.

Central clearinghouses, with over $1 trillion in liquid assets, can worsen financial stress by creating "margin spirals." During crises, increased margin requirements by these clearinghouses can lead to widespread asset sell-offs, escalating market volatility. The Bank for International Settlements (BIS) highlights concerns about their $600 billion government bond holdings, which can exacerbate sell-offs when their value drops. This risk transforms counterparty risk into systemic liquidity risk. The BIS emphasizes that such spirals, even from small market segments, can threaten the broader financial system's stability.

What does Mike Maloney think of the recent price action in gold and silver? Tune in today’s video to find out…

The White House has alerted Congress that it is nearly out of funds for military aid to Ukraine, having spent approximately $111 billion. Without additional funding, the U.S. will be unable to continue supporting Ukraine with weapons and equipment. The Pentagon has already used 97% of its allocated funds, and the State Department has exhausted its budget for military assistance.

Increasing numbers of Americans are withdrawing from their 401(k) accounts, signaling rising financial strain amid high inflation. Fidelity reports a jump in hardship withdrawals and loans from retirement savings. This trend, along with growing consumer and executive pessimism, suggests concerns about an impending recession and the ongoing impact of inflation on household incomes. JPMorgan CEO Jamie Dimon also highlighted risks of an economic downturn due to rising interest rates.

The dollar started the week weak after cautious remarks from Federal Reserve Chair Jerome Powell, with markets anticipating a potential end to the rate-hike cycle. Powell indicated U.S. policy was slowing the economy, leading to a 60% chance of a rate cut by March. Meanwhile, Bitcoin surged to $40,000, its highest in over a year. The U.S. dollar index hovered around 103.28, while the Australian and New Zealand dollars strengthened. Upcoming speeches by European Central Bank officials and economic data could further impact currency markets.

A Penn Wharton study suggests the U.S. could reach its public debt limit of approximately 200% of GDP in about 20 years under current fiscal policy. Currently, U.S. public debt stands at about 98% of GDP, or $26.3 trillion. Without corrective measures, the U.S. risks defaulting on its debt. Market confidence in future fiscal adjustments could shorten this timeframe if lost. The study also notes that the severity of the debt issue is often exaggerated, and recent increases in gold prices indicate growing concerns about debt sustainability.

The U.S. Treasury yield curve has shifted from steeply inverted in May to nearly flat and is now steepening again. This unusual pattern, resembling an inverted double hump, suggests mixed market expectations about a potential short recession followed by inflation, risk aversion, or doubts about the Federal Reserve's control. The current shape of the yield curve raises concerns about the sustainability of U.S. federal debt and the temporary nature of recent inflation declines.

U.S. factory orders in October fell sharply by 3.6% month-over-month, the largest drop since the COVID lockdowns in April 2020, with a year-over-year decline of 2.1%. Core factory orders also decreased, down 1.2% monthly and 2.2% annually. Durable goods orders plunged 5.4% in the same month. Despite these declines, defense spending increased by 24.7%. Year-over-year growth in factory orders for October was stagnant amid negative M2 Money growth.

The Case-Shiller National home price index indicates a slowdown in housing price growth since March 2022. Recent homebuyers, particularly in high-demand areas, are facing property value depreciation, making it harder to build equity and potentially leading to sales losses. However, long-term homeowners are still profiting, with 97% of sellers nationwide selling their homes at a gain. The current market's high prices are sustained by tight inventory and homeowners' reluctance to switch to higher mortgage rates.

At the current price, silver is a real bargain.
Gold went on a run late last week, setting an all-time record high last Friday and breaking the $1,100 level for a brief time in overseas trading Sunday night. Silver also rallied but continues to lag behind gold.
In fact, silver looks significantly underpriced based on both its historical relationship with gold and the supply/demand dynamics.

Gold's trend of rallying in December is expected to persist, recently hitting a record high of $2,089.70 an ounce. Factors such as seasonal patterns, economic uncertainties, potential recession, and declining real interest rates are contributing to its strength. Central bank purchases amid limited supply are also supporting gold's rise. Additionally, a weakening dollar due to lower interest rates is boosting gold's appeal. So far this year, gold has increased by over 14%.

Gold prices reached a record high of $2,100 per ounce, driven by geopolitical tensions, expectations of U.S. interest rate cuts, and a potential weaker dollar. Analysts anticipate gold maintaining above $2,000, possibly reaching $2,200 by end of 2024. The demand for gold, seen as a safe-haven asset, is bolstered by factors like the Israel-Palestinian conflict and central banks' interest in gold. A forecasted shift in Fed policy in 2024 could further increase gold's attractiveness.

A U.S. warship, USS Carney, and three commercial vessels were attacked in the Red Sea, linked to tensions from Israel's conflict with Hamas. The Houthis, an Iran-backed group in Yemen, claimed responsibility, targeting the ships with drones and missiles. The USS Carney, which had previously intercepted attacks from Yemen, responded without damage or crew injuries. The attacks raise concerns about the safety of international maritime commerce in a key global trade corridor and the potential wider impact on Middle East stability.

The U.S. faces fiscal difficulties with a rising national debt expected to reach 115% of GDP in a decade and concerns over who will buy the massive issuance of Treasuries. Despite rising Treasury yields and a credit rating downgrade, the U.S.'s economic strength and the dollar's status as a reserve currency offer some investor confidence. However, there's caution against complacency, with the UK gilt crisis serving as a warning of potential market reactions to fiscal instability.