Precious metals news

The U.S. economy has consistently outperformed pessimistic forecasts, demonstrating remarkable resilience in the face of anticipated challenges. Recent data on retail sales, employment, consumer spending, and small business optimism all indicate continued economic expansion, defying predictions of a recession. Major retailers like Walmart report strong sales and positive consumer trends, while jobless claims remain low. This economic strength challenges the notion of an impending downturn and suggests that the U.S. economy is more robust than many analysts had anticipated, despite concerns about high interest rates and potential slowdowns in various sectors.

Gold prices reached an unprecedented milestone, surpassing $2,500 per ounce for the first time on August 16, 2024. This historic surge was primarily driven by expectations of imminent interest rate cuts from the Federal Reserve, following disappointing US housing data. The precious metal's value has increased by over 20% in 2024, buoyed by a combination of factors including geopolitical tensions, anticipated monetary policy shifts, and strong demand from central banks. Analysts predict that gold's performance will continue to be influenced by the Fed's rate decisions, ongoing global conflicts, and the upcoming US presidential election, with prices expected to remain elevated in the short to medium term.

The Federal Reserve's anticipated interest rate cuts may not necessarily lead to positive stock market performance, contrary to popular belief. Historical data shows that in more than half of the cases since 1970, the S&P 500 Index experienced significant declines following the Fed's initial rate cuts. The market's reaction depends on various factors, including the reasons behind the rate cuts, economic outlook, and current stock valuations. While rate cuts can potentially boost economic growth and corporate profits, investors should remain cautious and consider the broader economic context rather than assuming automatic market gains after rate reductions.

Gold reached a historic milestone on Friday, surpassing $2,500 per ounce for the first time. This record-breaking price was driven by several factors, including expectations of imminent interest rate cuts by the Federal Reserve, a weakening US dollar, and ongoing geopolitical tensions. The precious metal's value has increased by approximately 20% in 2024, buoyed by central bank purchases and its appeal as a safe-haven asset. Disappointing US housing market data further reinforced beliefs that the Fed would soon lower borrowing costs, contributing to gold's rally.

Gold prices have hit record highs, climbing as high as $2,489.90 Friday morning.

Gold-backed ETFs are experiencing significant inflows, reaching a two-year high in July, driven by expectations of U.S. interest rate cuts, geopolitical risks, and increased investor demand. This trend marks a potential reversal of the long-running selling trend, with all regions showing net inflows. The appeal of gold as a safe-haven asset is growing due to concerns over economic slowdowns and potential conflicts in the Middle East, leading to expectations of sustained price increases.

Join us for Part 1 of an eye-opening live presentation with Mike Maloney, founder of GoldSilver.com and author of “Guide to Investing in Gold and Silver” and “The Great Gold & Silver Rush of the 21st Century”. In this thought-provoking discussion, Mike delves into the fundamental distinction between money and currency. Discover the historical significance of gold as money and witness how the U.S. dollar has drastically lost its value over time.

Bloomberg strategist Mike McGlone predicts gold prices will reach $3,000 per ounce, citing various economic factors. He argues that gold's recent outperformance of major stock indices signals deeper macroeconomic issues. McGlone attributes gold's strength to geopolitical shifts, central bank buying, and increasing market volatility. He sees gold as a safe-haven asset amid potential recession risks and peaking bond yields. While gold shines, McGlone notes a broader deflationary trend in commodities, with industrial metals declining and oil in a bear phase. This complex economic landscape, according to McGlone, positions gold for continued growth despite current market uncertainties.

Gold prices are expected to reach new heights by the end of 2024, with J.P. Morgan forecasting a target of $2,500 per ounce. This bullish outlook is driven by various factors, including geopolitical risks, anticipated Federal Reserve rate cuts, inflation hedging, and central bank buying. Despite recent strong U.S. economic data pushing back expectations for rate cuts, gold has continued to rally, decoupling from real yields. Analysts suggest that any price retracements in the coming months could present opportunities for investors to position themselves ahead of the Fed's planned cutting cycle, with the potential for gold to reach even higher levels in 2025.

Recent economic data suggests a cooling U.S. labor market, raising concerns about a potential recession. Key indicators include slowing labor force growth and rising unemployment over the past year. While some experts view these trends as part of a normal economic adjustment towards a "soft landing," others see them as warning signs of a possible downturn. The situation has led to market volatility and debates among economists about the likelihood of a recession versus a controlled economic slowdown. This complex economic picture challenges previous optimistic forecasts and highlights the uncertainty surrounding the U.S. economy's near-term trajectory.

A new study suggests that the rise of sports betting in the U.S. is leading some Americans, particularly those in financially strained households, to withdraw money from their stock investments to fund online gambling. For every dollar spent on sports betting, the research claims a $2 decrease in stock investments. This trend raises concerns about the potential negative impact on household financial stability, especially among vulnerable populations. However, the gaming industry disputes these findings, arguing that sports betting is an entertainment expense rather than an investment alternative. The debate highlights the complex relationship between different forms of risk-taking activities and their impact on personal finances.

The latest U.S. jobless claims data shows an unexpected decrease in new unemployment benefit applications, suggesting a gradual and controlled slowdown in the labor market. Despite concerns raised by July's increased unemployment rate, layoffs remain historically low. However, the data also indicates that laid-off workers are facing challenges in securing new employment, with continued claims remaining elevated. This complex picture reflects the impact of the Federal Reserve's interest rate hikes on hiring practices and overall economic demand, while also highlighting the influence of increased labor supply due to immigration.

The latest inflation data has shifted the focus from whether the Federal Reserve will cut interest rates to how much they will cut. With CPI falling below 3%, the lowest since spring 2021, expectations for a September rate cut have solidified. However, the magnitude of the cut remains uncertain, with market bets on a 50 basis point decrease declining. The Fed will consider additional economic indicators, including the core PCE price index, August jobs report, and another CPI report, before its September meeting. While inflation's decline gives the Fed more flexibility, balancing concerns about the labor market and recession risks will influence the aggressiveness of their easing strategy.

U.S. retail sales significantly outperformed expectations in July 2024, rising 1% compared to the anticipated 0.4% increase. This robust growth, coupled with positive revisions to June's figures, suggests continued consumer resilience despite economic concerns. The broad-based increase across various retail categories, including strong performances in motor vehicle sales and electronics, indicates widespread consumer spending. This data, along with recent favorable inflation readings, has prompted some economists to suggest that the Federal Reserve should shift its focus from inflation to potential labor market issues and their broader economic implications.

Gold prices have rebounded as investors remain optimistic about potential U.S. Federal Reserve interest rate cuts in September. Recent inflation data and comments from Fed officials have strengthened expectations of monetary policy easing, driving gold prices close to record highs. While the market anticipates a rate cut, uncertainty persists regarding its magnitude. Traders are closely monitoring economic indicators and Fed signals, with gold finding support from the prospect of lower interest rates, which typically boost the appeal of non-yielding assets like precious metals.

Atlanta Federal Reserve President Raphael Bostic has signaled openness to a potential interest rate cut in September, marking a shift in his stance on monetary policy. In an interview with the Financial Times, Bostic emphasized the need for timely action as inflation cools and the labor market shows signs of weakening. This aligns with market expectations and recent economic data, suggesting the Federal Reserve may be preparing to ease its monetary policy for the first time in this cycle. Bostic's comments reflect a growing consensus among Fed officials that the time for rate cuts may be approaching, though he remains cautious about the pace and magnitude of potential reductions.

The Yukon government has filed an application to place Victoria Gold Corp. into receivership following a major environmental disaster at the company's Eagle Gold Mine. In June 2024, a heap leach failure resulted in cyanide contamination of nearby waterways, prompting concerns about environmental damage and the company's ability to manage the crisis. Victoria Gold intends to oppose the receivership application, asserting its ongoing efforts to address the situation. The outcome of this legal battle could have significant implications for the mining industry in Yukon and set precedents for handling similar incidents in the future.

Ukraine launched a major drone attack on four Russian military airfields deep inside Russian territory, targeting fuel and weapons storage facilities. The Ukrainian military claims this was their largest long-range drone strike of the war, with President Zelenskiy praising the operation as "timely" and "accurate." While Russia reported intercepting numerous drones, satellite imagery confirmed damage to at least two air bases. This attack coincides with Ukraine's ongoing ground incursion into Russia's Kursk region, potentially aiming to disrupt Russian air capabilities.

With the Leading 8 Gold Miners reporting the highest cost ever, this has pushed up the Floor in the market price of gold.  How much?  That's a good question I will explain in detail in this new Video Report...

The latest U.S. inflation data shows a continued easing of price pressures, with the core Consumer Price Index (CPI) rising 3.2% year-over-year in July, marking the fourth consecutive month of deceleration. This trend supports the Federal Reserve's potential decision to cut interest rates in September. However, shelter costs, which account for a significant portion of the CPI, accelerated from June, presenting a mixed picture. The overall CPI increased by 2.9% annually, the lowest rate since March 2021. While inflation is generally trending downward, the Fed will likely consider additional data, including labor market conditions, before making a final decision on rate cuts. The market response has been cautious, with traders adjusting their expectations for the size and timing of potential rate reductions.