Precious metals news

U.S. consumer credit card debt has reached a record high of $1.14 trillion in the second quarter of 2024, according to the Federal Reserve Bank of New York. This represents a $27 billion increase from the first quarter and a 5.8% rise from the previous year. Delinquency rates have also increased, with 9.1% of cardholders in default. Rising inflation and interest rates have exacerbated the situation, with many Americans relying on credit cards to manage expenses. The average credit card interest rate has climbed to 24.84%, contributing to prolonged debt burdens.

Republican vice presidential nominee JD Vance has expressed support for former President Donald Trump's suggestion that the president should have more influence over the Federal Reserve's monetary policy decisions. Vance argues that such decisions should be political, reflecting the input of elected leaders. This stance marks a significant departure from the traditional independence of the Fed, which has historically been insulated from political interference to ensure stable economic policy. Vance's endorsement of Trump's idea comes amid broader discussions on the role of political influence in economic policymaking.

UBS Global Research maintains a positive outlook on the commodities sector, emphasizing its potential to diversify traditional bond and equity portfolios. Despite mixed economic data, UBS has increased its allocation to the precious metals sector to overweight, driven by steady demand from emerging markets, global net-zero initiatives, and structural underinvestment. UBS advocates for a dynamic investment approach, focusing on adaptability to macroeconomic conditions and sector selection. The bank views precious metals as a compelling investment in the current economic climate, supported by various geopolitical and economic factors.

A significant increase in Turkish demand for gold, driven by high inflation, has boosted Italian jewelry exports from Tuscany's Arezzo district by 133% in the first quarter of the year compared to 2023, according to a report by Intesa Sanpaolo. This surge in jewelry exports, totaling 1.8 billion euros, offsets a 23% decline in leather goods exports from the nearby Florence area, which has been affected by a global slowdown in luxury goods demand. The demand for gold, seen as a hedge against inflation, has also benefited other Italian jewelry districts. Meanwhile, Tuscan olive oil exports rose by 72%, despite an overall 1.1% decrease in exports from Italy's industrial districts.

Oil prices have climbed back above $80 per barrel, marking their first weekly gain since early July, as traders monitor potential Iranian reprisals following the assassination of a Hamas leader in Tehran. Brent crude rose nearly 4% last week, and West Texas Intermediate approached $78. The market is also influenced by reduced bullish positions on Brent and low expectations for gasoline and diesel, while geopolitical tensions and a weak economic outlook in China weigh on sentiment. Upcoming market reports and U.S. inflation data are expected to provide further clarity on supply and demand dynamics.

Gold prices rose on Monday as traders anticipated key U.S. inflation data and potential interest rate cuts by the Federal Reserve. Spot gold increased by 0.6% to $2,444.79 per ounce, while U.S. gold futures rose by 0.4% to $2,483.70. Investors are considering a 49% chance of a 50 basis point rate cut in September, with upcoming inflation data expected to influence this decision. Analysts suggest that lower-than-expected inflation could lead to record highs for gold prices. Geopolitical tensions and volatility in other markets continue to support gold's appeal as a safe-haven asset.

The gold medals awarded at the 2024 Paris Olympics are valued at approximately $900 due to the high prices of gold and silver, which make up the majority of the medal's composition. Each medal contains six grams of gold, with the rest primarily consisting of silver, which accounts for at least 92.5% of the weight. Despite their intrinsic value, athletes rarely sell their medals, as they hold significant personal and historical worth. However, when sold, these medals can fetch much higher prices at auctions, as seen with Jesse Owens' 1936 gold medal, which sold for nearly $1.5 million. Additionally, the 2024 medals uniquely include a piece of the Eiffel Tower, further enhancing their symbolic value.

The great transition to the U.S. LNG Trucking Natural Gas Super Highway has totally collapsed but is now being replaced by another FIASCO, called RNG.  The idea that we can transition the diesel transportation is hitting a BRICK WALL...

A recent survey from the World Gold Council reveals central banks plan to increase their gold purchases in the years ahead...

Gold experienced a sharp sell-off at the start of the week due to recession fears in the U.S., but it is expected to recover amid ongoing geopolitical uncertainties and potential interest rate cuts by the Federal Reserve. Despite the recent drop, gold remains up 15% for the year, driven by central bank purchases and strong demand from Asian consumers. The focus remains on the Fed's rate decisions, as lower rates could boost gold's appeal. Central bank buying continues, though China's purchases have slowed. Gold prices are projected to peak in the fourth quarter, supported by geopolitical tensions and central bank demand.

The S&P 500 has rebounded from Monday's significant losses, ending the week with gains as market volatility subsided. The recovery halted what would have been the longest streak of weekly losses for the index this year. The initial sell-off was triggered by concerns over the Federal Reserve's response to weak economic data and a rate hike by the Bank of Japan, which increased volatility in the yen and affected carry-trade investors. Despite the turmoil, the markets have shown resilience, with the S&P 500 rising 0.6% and the VIX, Wall Street's "fear gauge," calming down. Analysts remain cautious, noting that while the market conditions are challenging, they do not signal an imminent recession or the end of the current bull market.

Federal Reserve Bank of Kansas City President Jeffrey Schmid expressed skepticism about a potential interest rate cut in September, despite market anticipation. Speaking at the Kansas Bankers Association meeting, Schmid noted that while inflation is nearing the Fed's 2% target, it remains above this benchmark, and the labor market is still robust. He emphasized that future policy decisions will depend on economic data, highlighting the importance of a cautious approach given recent inflation shocks. Schmid also pointed out that the labor market's cooling is necessary for easing inflation, and despite a recent rise in unemployment, indicators suggest continued economic resilience.

Federal Reserve Bank of Kansas City President Jeffrey Schmid expressed cautious optimism about inflation nearing the Fed's 2% target but emphasized that further data is needed before supporting interest rate cuts. Despite a recent rise in unemployment, Schmid noted that the labor market remains healthy, and he underscored the importance of data-driven policy decisions. While the Fed maintained its current interest rates, Schmid suggested that future rate cuts could be possible if inflation continues to decline. However, he stressed the need for vigilance due to past inflation shocks and the importance of balancing inflation control with employment stability.

Gold prices are set for a weekly decline as recession fears in the U.S. have eased following positive jobs data, which bolstered risk appetite and strengthened the dollar. This led to a sell-off in gold, a typical safe-haven asset, as investors shifted towards riskier investments. Although gold prices fell as much as 3% earlier in the week, they slightly recovered, with spot gold down 0.1% to $2,425.34 per ounce. The anticipation of a potential interest rate cut by the Federal Reserve in September, due to cooling inflation and labor market data, continues to influence market dynamics. Other precious metals, such as silver and platinum, also experienced declines, while palladium saw a slight gain.

The Bank of Japan (BOJ) has left traders uncertain about its intentions after delivering mixed messages regarding interest rate hikes. Governor Kazuo Ueda initially signaled that the weak yen was a risk and rates might rise, causing the yen to surge and Japanese stocks to plummet. In response, Deputy Governor Shinichi Uchida later stated that rate hikes were not imminent due to market turmoil, which calmed the markets but left investors confused. The BOJ's communication challenges have increased market volatility, with investors questioning the central bank's consistency and clarity as it navigates the unwinding of its long-standing monetary stimulus.

The average rate for a 30-year mortgage has dropped to 6.47%, the lowest in over a year, providing a boost for prospective homebuyers and homeowners looking to refinance. This decline follows a decrease in the 10-year Treasury yield, driven by disappointing labor market data. While the rate drop has spurred an increase in refinancing applications, economists expect mortgage rates to remain above 6% this year. The decrease in rates could enhance purchasing power, but high home prices and limited inventory continue to challenge buyers. The recent easing of rates aligns with expectations of potential Federal Reserve rate cuts amid signs of cooling inflation and a softer job market.

In response to growing political instability, some wealthy Americans are investing in luxury doomsday preparations, such as acquiring citizenship in countries like Malta or purchasing bespoke bunkers. These high-end bunkers, offered by companies like Atlas Survival Shelters, feature advanced security measures and luxurious amenities, including granite countertops and oak flooring. The trend reflects a broader societal anxiety reminiscent of past fears, but now influenced by political rhetoric. Polls indicate a significant portion of Americans perceive an increased risk of politically motivated violence, prompting affluent individuals to seek secure alternatives like the "Survival Condo" in Kansas. This shift in preparedness strategies highlights a new level of concern among the wealthy about potential catastrophic events.

Archaeologists have uncovered a pot of gold coins in the ancient Greek city of Notion, located in present-day western Turkey. This discovery, made during an excavation led by Dr. Christopher Ratte from the University of Michigan, dates back to the fifth century BC. The coins, known as Persian darics, were found buried beneath the floor of a courtyard house and are believed to have been the life savings of a Greek mercenary. The site, which includes typical features of an ancient Greek city, offers insights into the historical conflicts between Greek and Persian forces. The controlled excavation of this rare find provides valuable context for understanding the chronology of Achaemenid gold coinage and the socio-political landscape of the era

Join Alan Hibbard as he sits down with Tavi Costa from Crescat Capital to discuss the current state of gold and silver markets

Nvidia has experienced a $900 billion decline in market value since its peak in mid-June, despite ongoing investments in AI infrastructure by major tech companies like Microsoft, Amazon, Alphabet, and Meta. The company's shares have fallen 25% due to investor rotation away from expensive tech stocks amid macroeconomic uncertainties and market volatility. While Nvidia remains a key player in AI, the lack of immediate catalysts and concerns over monetizing AI investments have contributed to its stock's decline. Analysts suggest that the current downturn may be temporary, with a focus on Nvidia's upcoming earnings report at the end of August.