Precious metals are apparently waking up. And here is where you can find the best deals.
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Dec 15, 2023 - 05:11:08 PST
Europe's leading central bankers emphasized that it's premature to ease measures against high inflation, despite the U.S. Federal Reserve Chair Jay Powell signaling potential rate cuts. Despite the European Central Bank and the Bank of England's resistance to rate-cutting speculation, investors are increasingly betting that these banks will eventually indicate borrowing cost reductions in 2024, following the Fed's lead.
Fed's Rate Projections Lead Dollar to Its Worst Week in Nearly Half a YearDec 15, 2023 - 05:07:42 PST
The U.S. dollar is on track for its largest weekly decline in five months, influenced by expectations of rate cuts from the Federal Reserve. In contrast, the more stringent monetary policies of central banks in Europe have bolstered the euro and the pound, contributing to their weekly gains against the dollar.
BIG CRACKS APPEAR: Massive U.S. Deficits & Major Problems At The FDIC Deposit InsuranceDecember 15, 2023
While the U.S. Treasury monthly deficit surged again in November, this is only one part of the "Major Problems" occurring in the U.S. financial system. Another BIG CRACK is appearing in the U.S. FDIC Insurance Fund as the percentage of insured deposits hit a low...
Gold and silver are poised to significantly outperform in the metals sector, with gold projected to reach new highs of around $2,175/oz by the fourth quarter of 2024. Silver is also expected to see a strong uptrend, averaging near $30/oz during the same period. This optimistic forecast, driven by the Fed's rate cutting cycle and declining U.S. real yields, highlights a particularly bullish outlook for both metals into early 2025, as emphasized by J.P. Morgan's Gregory Shearer.
In 2023, despite a slight slowdown, central bank gold purchases showed resilience according to the World Gold Council. Gold demand globally remained robust, with a 3% increase in jewelry consumption and a 6% rise in demand for gold bars and coins. Gold production also saw significant growth, exemplified by Barrick Gold Corp's Nevada project. Notable countries with substantial gold reserves include Austria, Spain, Lebanon, the UK, Kazakhstan, Saudi Arabia, Uzbekistan, Portugal, Taiwan, and Turkey, highlighting gold's importance as a stable economic asset.
Gold prices hit a 10-day high, with spot gold rising 0.5% to $2,036.69 per ounce, following the Federal Reserve's indication of ending its monetary tightening cycle. U.S. gold futures increased by 2.7% to $2,051.20. This surge is linked to a weaker U.S. dollar and lower Treasury yields, making gold more attractive as interest rates fall. The market anticipates a potential Fed rate cut in March, alongside increases in silver, platinum, and palladium prices.
Gold investors are advised to focus on the long-term, as gold historically retains value over time. Current trends indicate a bullish market, with predictions of gold reaching $15,000 per ounce by 2026. This optimistic forecast is based on a detailed analysis of past gold bull markets. As gold's value tends to rise steadily, investors should consider the potential long-term gains rather than short-term price changes.
Major banks like UBS, Deutsche Bank, and JPMorgan predict gold prices to rise to around $2,250 by 2024, despite current views of overvaluation in the short term. This suggests that gold's long-term investment appeal remains robust. The market, influenced by global demand and central bank policies, is transitioning from bearish to bullish. This trend reflects gold's enduring value as an investment in the fluctuating financial landscape, known as the "Bullion Bank Zone."
The Biden administration just ran the largest November budget deficit in history.And it managed this feat even with a 9% increase in government receipts.
The prospect of higher interest rates generally poses a challenge for non-interest-bearing assets like gold. However, the timing of rate cuts is crucial for gold's outlook. For 2024, gold is predicted to reach record levels, driven by a combination of factors: anticipated Federal Reserve rate cuts, strong demand from central banks, and gold's established role as a reliable hedge in times of geopolitical uncertainty. These elements together bolster a highly bullish view on gold for the upcoming year.
In this eye-opening video, Join Mike Maloney and Alan Hibbard as they delve into Argentina's currency crisis and its ripple effects on the global economic landscape.
The latest CPI report reveals a concerning trend of persistent inflation, casting doubt on the Federal Reserve's ability to cut rates in 2024. Inflation has been rising for five months, defying the expected downturn and indicating a prolonged inflationary period. This trend, especially in key sectors like housing and healthcare, suggests a more troubling economic outlook than previously anticipated, with significant implications for monetary policy and financial stability.
Initial Jobless Claims Tumble Near 2023 Lows, but Continuing Claims Remain Near Two-Year HighsDec 14, 2023 - 06:00:14 PST
U.S. jobless claims unexpectedly dropped to 202k last week, a low for 2023, yet continuing claims increased modestly to 1.876 million, hovering near a worrying two-year high. This mixed labor market signal presents a significant challenge to the Federal Reserve's strategy, as it struggles to balance economic stability with rising employment concerns.
Dec 14, 2023 - 05:50:47 PST
British economist Charles Goodhart predicted a lasting return of inflation, contradicting the then-prevailing low rates. His 2020 book argued that demographic shifts and labor shortages would drive up prices and interest rates. Despite skepticism, given Japan's experience with aging and low inflation, Goodhart's views, based on his extensive experience and influence in economic policy, are hard to ignore. He warns that central banks must adapt to these changes and cautions about looming fiscal crises in major economies, indicating a challenging period ahead.
On the streets of Buenos Aires, Argentines are facing severe economic hardship due to drastic austerity measures and a dramatic over 50% devaluation of the peso. This shock plan, introduced by President Javier Milei's government to stabilize the economy, includes deep cuts in state spending, exacerbating a serious fiscal deficit. The steep devaluation of the peso is set to significantly worsen the already high inflation rate of nearly 150%, causing widespread financial distress among the population.
Wall Street traders and the Federal Reserve are finally aligned, anticipating a significant monetary shift as the Fed signals an end to its policy tightening. After projecting more aggressive interest-rate cuts in 2024, a notable rally in financial markets ensued. This rally, starting Wednesday and continuing into Thursday, saw global shares, front-end Treasuries, world currencies, gold and corporate bonds all experiencing significant gains.
Yield-Curve Is a Problem for the Fed: Central Bank Might Ease Rates Sooner Rather Than LaterDec 14, 2023 - 05:24:58 PST
Chairman Jerome Powell's Federal Reserve has decided to maintain its target interest rate range at 5.25% to 5.5%, the highest level in over two decades. Despite this, the Fed's post-meeting statement, acknowledging the recent slowdown in inflation, coupled with forecasts from policymakers projecting lower rates by the end of the following year, suggests that the Fed might be considering easing monetary policy sooner rather than later. This decision comes amid concerns about an inverted yield curve, often seen as a precursor to a recession.
The Federal Reserve just surrendered to inflation.Fed officials won't call it a surrender. They're claiming victory. But surrender is the effect of the policy trajectory laid out by the Federal Open Market Committee (FOMC) at its December meeting.
The Bloomberg Dollar Spot Index fell to its lowest since August, dropping by 0.5%, following signals from the Fed about a faster pace of rate cuts than previously anticipated. The US central bank has maintained steady rates, with Chair Jerome Powell indicating potential hikes if inflation rises. However, the Fed is largely seen as ending its tightening cycle, shifting focus to when rate cuts should begin as inflation approaches their 2% target.
Gold is outperforming other commodities, with room for further growth beyond its current price of $2073 per ounce. This trend hints at a decrease in US geopolitical dominance, as the overreliance on the US Dollar in international commerce faces challenges. Nations are exploring alternatives to the Dollar, with gold emerging as a natural choice despite political resistance. The rising gold price reflects this shift towards gold in the global financial landscape. That's what gold is telling us.