Precious metals news

With the Markets, Metals, Energy, and Bitcoin all down today, is this the beginning of a larger selloff to come?  That's a good question.  Also, I will provide a preview of my next Big Report, which digs deep into the notion that we are heading into a new space race with unlimited energy and resources...

Gold prices continued their upward trajectory in August, reaching a new all-time high before settling at $2,513/oz, a 3.6% increase for the month. This rise was primarily driven by a weaker US dollar and lower Treasury yields as the Federal Reserve hinted at potential rate cuts. Additionally, India's reduction in gold import duties boosted demand, while global gold ETFs saw continued inflows, particularly from Western funds. However, China's economic slowdown may impact consumer gold demand, contrasting with the positive trends seen in other markets.

Howard Marks, co-chairman of Oaktree Capital Management, predicts that US interest rates will stabilize between 3% and 4% after the Federal Reserve's upcoming rate cuts. Speaking at a conference in Melbourne, Marks suggests that while the Fed will reduce rates from their current "emergency" levels, they won't return to the near-zero rates seen in recent years. He believes the inflation emergency is over, but cautions that economic growth may slow and profit margins could erode as the economy returns to a more normal state, characterized by a mix of good and bad times.

China's young consumers are increasingly turning to gold jewelry as both a fashion statement and an investment. This trend is driven by a combination of factors, including rising gold prices, cultural resonance with traditional Chinese designs, and the perception of gold as a stable store of value. Many young buyers are attracted to gold jewelry that incorporates ancient crafting techniques and cultural elements, reflecting a broader "China chic" trend. Additionally, gold is seen as a hedge against inflation and a safer investment option compared to other assets like real estate or stocks in the current economic climate.

Gold is up 1% to near one-week highs on Thursday, driven by a weaker U.S. dollar and lower yields following signs of a cooling labor market. Investors are now anticipating a potentially larger-than-expected interest rate cut from the Federal Reserve this month. Recent data showing a decline in private sector hiring and job openings has increased expectations for a 50 basis point rate cut, with traders now seeing a 45% chance of such a move. The upcoming non-farm payrolls report on Friday is expected to provide further insight into the labor market's health and influence the Fed's decision-making.

Reporting from the Limitless conference in Dallas, Mike Maloney discusses the unsettling calm in the gold market as it reaches unprecedented highs.

Global gold ETFs experienced their fourth consecutive month of inflows in August, driven primarily by Western demand. North American funds led the charge, adding $1.4 billion, as cooling inflation, a weakening labor market, and dovish Fed signals bolstered expectations of interest rate cuts. The trend was supported by a weaker US dollar, lower Treasury yields, and heightened geopolitical tensions. European, Asian, and other regional funds also saw positive inflows, with gold prices nearing record highs and market conditions suggesting potential for further growth.

Gold prices are showing resilience as investors await crucial US labor market data, particularly the nonfarm payrolls report due on Friday. Recent job openings data suggesting a cooling labor market has increased expectations for aggressive Federal Reserve rate cuts, which typically benefit gold. The precious metal has gained over 20% this year, driven by anticipation of monetary easing, strong over-the-counter demand, and geopolitical tensions. While trading in a narrow range around $2,500, gold remains near its recent all-time high, supported by a weakening dollar and lower bond yields.

Gold's recent surge to all-time highs is driven by a combination of factors, including geopolitical uncertainties, increased central bank purchases (particularly from China), and a weakening US dollar. Keith Lerner, a strategist at Truist, suggests that gold remains an attractive investment option for portfolio diversification, citing its positive technical trends and potential as a hedge against currency fluctuations.

Join us in this insightful discussion with Alan Hibbard, Precious Metals Specialist at GoldSilver.com, as we delve into the current state of the gold

Gas prices in the U.S. are declining significantly, with the national average reaching a six-month low of $3.32 per gallon. This drop is attributed to falling oil prices, weakening gasoline futures, and the end of the summer driving season. Analysts predict that prices could potentially reach $3 per gallon by year-end, barring any major disruptions like hurricanes. The decline in oil prices, partly due to concerns over China's economy and increased OPEC+ supply, may prompt the oil alliance to reconsider its production policies.

In July, U.S. job openings fell to their lowest level since January 2021, with vacancies dropping to 7.67 million and layoffs rising to 1.76 million, the highest since March 2023. This decline in job openings, coupled with slowing job growth and rising unemployment, indicates a softening labor market, raising concerns about a potential recession. The Federal Reserve is closely monitoring these developments and is expected to consider lowering interest rates at its upcoming meeting. The August employment data, due soon, will be crucial in determining the Fed's next steps, especially if it shows further labor market weakness.

An economist outlines six key indicators that can help predict an impending recession, offering valuable insights for individuals concerned about economic stability. The article provides expert advice on how to interpret these signs and prepare for potential economic downturns. By understanding these indicators, readers can make informed decisions about their finances and take proactive steps to protect themselves.

Many borrowers mistakenly believe they should wait for the Federal Reserve to officially lower interest rates before taking out long-term loans, hoping to secure lower rates. However, research shows that long-term rates already reflect anticipated changes in short-term rates, so waiting is unnecessary. This misconception can undermine the effectiveness of Fed policy, as borrowers rush to lock in rates before expected increases, inadvertently fueling inflation. Even sophisticated investors and corporate managers often make this error, assuming long-term rates will follow the path of short-term rate changes.

The bond market is experiencing intense conflicts, dubbed "covenant wars," as companies exploit weakening debt terms to pit creditors against each other. Over the past decade, covenants protecting lenders have eroded due to low interest rates and fierce competition to lend to riskier, higher-yielding companies. Now, with rising interest rates causing financial strain, companies are increasingly using tactics to circumvent covenants, often by favoring new creditors over existing ones. This trend is causing concern among investors about the stability of the high-yield debt market and is even spreading to the traditionally more cooperative private credit sector.

Goldman Sachs advises investors to invest in gold as the Federal Reserve is expected to cut interest rates soon. Despite a slight dip from its all-time high, gold has risen nearly 22% this year, making it the second-best performing asset after cryptocurrencies. Goldman Sachs views gold as a preferred safeguard against geopolitical and financial risks, supported by central bank purchases in emerging markets. The firm has set a target price of $2,700 per ounce for 2025, recommending a "long gold" position as the metal's upward trajectory continues.

A recent Federal Reserve Bank of San Francisco study suggests that U.S. housing inflation is expected to decrease in the coming year as housing supply and demand balance out. This decline in housing costs is likely to contribute to overall lower inflation rates. Despite the Fed's efforts to curb inflation through interest rate hikes, housing costs have remained stubbornly high. However, the researchers predict that shelter inflation could drop to around 2% by year-end, before settling back to pre-pandemic levels of about 3.3% next year.

The U.S. stock market experienced a significant selloff, driven by growing concerns about a potential recession amid weak manufacturing data and anticipation of upcoming jobs reports. This volatility has spread globally, affecting markets in Europe and Asia, particularly hitting tech stocks hard. Investors are now reassessing their optimism about potential interest rate cuts and seeking safer assets as they brace for potential economic challenges ahead.

Gold prices continued to decline on Wednesday, falling to a two-week low despite a broad market sell-off. This unexpected behavior is attributed to investors selling gold to cover margin calls in other markets, particularly equities. The precious metal's weakness persists ahead of important U.S. economic data releases, including non-farm payrolls, which could influence Federal Reserve rate cut expectations.

While there is a lot of FAKE NEWS in the media, I decided to discuss some of the Fake News that is taking place in the precious metals industry.  In this update, I cover what I believe are Two Fake News events taking place, but this is only the Tip of a massive Iceberg....