Precious metals news

(10Y Vol Near Low As Well) – How Low Will It Go? The Treasury yield curve from 5 to 30 years flattened Thursday to the lowest level since August 2007, as a combination of weaker-than-expected U.S. inflation and solid demand for a record bond auction bolstered investor confidence in owning long-dated securities.

"By 2020, over half of all personal income taxes will be required just to service the national debt."

Euro May Fall as ECB’s Draghi Talks down Stimulus Withdrawal Bets

As Britain draws nearer to its divorce from the European Union at the end of March with little certainty as to the economic repercussions

Bank of Japan Governor Haruhiko Kuroda said more work needs to be done to boost the country's growth potential, making a rare call for the government to deliver on its growth strategy - the third arrow of premier Shinzo Abe's reflationist policies.

"The whole world sees the dollar monopoly is unreliable; it is dangerous for many, not only for us,” Putin said.

Russia could issue gold backed bonds.

The dollar's newfound shine will fade as the U.S. economy's strength and higher interest rates won't support the currency's resurgence for longer than another three months at most, a Reuters poll found.

"If the Fed were to be stoking inflation under a belief they are taming it, such an event would be a central banking error of historic proportions."

According to Deutsche Bank, the chart below has “significant predictive power” for what currency markets are likely to do next, especially over the longer-term. Read more at https://www.businessinsider.com.au/fx-currency-valuations-trade-ideas-2018-5#7LGmY74E0WAJiXLY.99

The Argentine peso may face “disorder” next week if the nation’s central bank struggles to roll over about $30 billion of short-term notes set to expire, JPMorgan Chase & Co. said.

In the first quarter of 2018, Americans owed $3.824 trillion, up 5.1 percent from the same time period last year.

Iran is about to get hit with fresh U.S. imposed sanctions. Here's what gold (and silver) investors need to know about what this means for gold...

The 10-year yield pulled back to 2.96%, and the DX retreated to 92.61. Gold rallied back to $1322, but failed to take out its earlier high. It was $1320.50 bid at 4PM with a gain of $8.

As we reported earlier this month, the federal government is borrowing money at record levels. The US Treasury’s net borrowing totaled $488 billion from January through March, adding to an already enormous national debt. In fact, the entire world is drowning in debt.
When we bring this fact up, a lot of people still just shrug and say, "So what? We've been running up debt for years. It hasn't really caused any problems. Why worry about it now?"
David Stockman recently appeared on the Tom Woods Show. During the interview, the former Officer of Budget and Management director under Ronald Reagan explained exactly why we should worry about it now.

Net inflows of gold into gold-backed ETFs hit the highest level in more than a year last month.
Global gold-backed ETF holdings collectively added 72.2 tons of the yellow metal in April, according to data released by the World Gold Council. Overall, gold-backed ETFs increased their holdings to 2,481 tons worth an estimated $104.6 billion.

Economists point out that recent data on US inflation has affected expectations on the Fed's decision to abstain from raising the interest rates, which has indirectly stimulated the price of gold.

Pension funds generally need 7 to 8 percent returns to break even, and buying 10-year bond at 3 percent means they're locking in a guaranteed loss. Going forward, these losses will continue to grow and eventually lead to some form of a bailout.

Argentina has started talks with the International Monetary Fund seeking financial rescue once again, as inflation soars and the currency sinks.

The U.S. dollar edges back Thursday, with a key gauge on course for a second straight loss, as April consumer price inflation came in weaker-than-expected.