Precious metals news

CME Group reported a record average daily volume (ADV) of 24.8 million contracts for July 2024, a 24% increase from the previous year. The surge in trading activity reflects robust demand for risk management tools amid global economic uncertainties.The report indicates that there was a significant increase in gold options trading, which suggests that many investors are feeling optimistic (or "bullish") about gold prices rising.

Americans are adjusting their dining habits in response to ongoing inflation, with many opting to cook at home rather than eat out. While grocery prices have increased by 1.1% in the past year, restaurant meal costs have risen by 4.1%. This disparity has led to a decline in sales for fast-food chains and restaurants, with McDonald's reporting its first sales drop since the 2020 pandemic shutdowns. Consumers are now more likely to splurge on groceries for home-cooked meals rather than dining out, prompting restaurants to offer more deals and meal combos to attract customers. This shift in consumer behavior reflects the cumulative impact of price increases since mid-2020, with grocery costs up 19% and restaurant prices up 24%.

The Dow Jones Industrial Average plummeted 760 points on Friday, driven by recession fears and disappointing earnings reports, following a 494-point drop on Thursday. Intel's stock, in particular, plunged 28.8% after a poor earnings report, contributing significantly to the Dow's decline. This marked Intel's largest one-day drop since 1974, shaving about 55 points off the Dow's total. The broader market selloff reflects growing concerns about the economic outlook and potential recession.

Morgan Stanley predicts that gold prices will soar to $2,600 per ounce by the fourth quarter of 2024, driven by central bank purchases, increased retail demand, and global geopolitical turmoil. Despite a 50% rise from 2022 lows and a 25% increase since mid-February, gold's appeal as a safe-haven asset continues to grow. Factors such as central banks from developing nations increasing their reserves, robust retail and institutional investment, and ongoing global conflicts are expected to propel gold prices higher. Additionally, economic uncertainties and potential US rate cuts further support this bullish outlook.

Gold prices have resumed their upward trajectory, reaching the anticipated target of $2,483.40. This level is crucial, as breaking through it could propel the price to the next significant milestone of $2,500.00. However, if the current bullish trend fails to maintain momentum, it could trigger substantial sell-offs, potentially pushing the price down to $2,420.00 or even $2,380.00. Investors and traders are closely monitoring these key levels to determine the precious metal's next move in this volatile market.

China's sluggish economic recovery, marked by a protracted property market downturn and high job insecurity, is impacting global corporate growth. Major companies like Starbucks, General Motors, and various tech firms have reported challenges due to weak consumer spending and ineffective stimulus measures. China's economy grew slower than expected in Q2 2024, with retail sales hitting an 18-month low. Despite government efforts to stimulate consumption, concerns persist about prolonged stagnation and deflation risks, making the Chinese market less reliable for global businesses.

China's bond yields have fallen to record lows, with the 10-year bond yield dropping to 2.13% and the 30-year note yield to 2.37%, despite repeated warnings from the People's Bank of China (PBoC) about a potential bubble in the sovereign bond market. Investors are responding to deflationary pressures and weak economic indicators in China, including slowing growth, declining manufacturing activity, and near-zero inflation. The PBoC is struggling to convince traders that the market is overheating and has indicated its readiness to intervene, but investors continue to bet on further yield declines as they anticipate more economic stimulus measures.

Gary Dugan, CEO of the Global CIO Office, expressed his views on various investment assets during an appearance on "Bloomberg: Markets Asia" on August 2, 2024. Dugan highlighted gold as a preferred asset, while also discussing technology stocks and bonds. His insights provide valuable perspective on current market trends and investment strategies for investors looking to navigate the financial landscape.

The US jobs report for July 2024 showed weaker-than-expected hiring and a rise in unemployment, suggesting a cooling labor market. This data has strengthened expectations for the Federal Reserve to cut interest rates soon, causing Treasury yields and the dollar to fall. As a result, gold prices surged, approaching the all-time high set last month. The precious metal's appeal as a non-interest-bearing asset typically increases when interest rates are expected to decline, explaining its strong performance in response to the jobs data.

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Gold prices have reached new record highs three times in less than three weeks, peaking at over $2,500 an ounce. December gold futures settled at $2,480.80 an ounce on Thursday, with intraday trading hitting $2,506.60. According to George Milling-Stanley of State Street Global Advisors, if the economic and political environment becomes more favorable, gold could trade between $2,500 and $2,700. Factors such as geopolitical conflicts, a weakening dollar, and potential rate cuts could drive gold to $3,000 per ounce.

As the Dow drops 900 points and the fear gauge spikes, gold emerges as a safe haven for investors.

Join Alan Hibbard on ‘UBS Trending’ as he offers his thoughts the current state of the precious metals market.

The Biden administration is advancing its new student loan forgiveness initiative by emailing 25 million borrowers this week to inform them of their potential eligibility for debt relief. This effort follows a year-long process to develop a new plan after the Supreme Court overturned Biden's initial proposal. The new program, leveraging the Higher Education Act, aims to provide relief to various borrower categories, including those with high interest rates, long-term repayment histories, and low-financial-value programs. Up to 25 million borrowers could benefit from this initiative, with the potential to increase the total number of eligible borrowers to over 30 million.

US worker productivity increased more than expected in the second quarter, rising at a 2.3% annualized rate, while unit labor costs grew at a slower 0.9% rate. This improvement in productivity, coupled with moderated labor cost growth, suggests diminishing inflationary pressures. The data provides further evidence for the Federal Reserve that the risk of inflation reacceleration is decreasing, potentially supporting the case for interest rate cuts in the near future. These trends indicate that companies are successfully managing elevated operating costs and maintaining economic growth despite high borrowing costs.

The global commodities market is experiencing significant shifts across various sectors. Canada's record maple syrup production, the start of gold mining companies' earnings season, and Germany's struggling chemicals industry are key focal points. Meanwhile, the U.S. maintains high crude oil production despite declining rig counts and leads in carbon capture technology. These developments highlight the diverse challenges and opportunities in the commodities market, from agricultural bounties to industrial struggles and technological advancements in energy and environmental sectors.

The number of Americans filing new unemployment claims rose to 249,000 for the week ending July 27, the highest in 11 months, indicating potential softening in the labor market. This increase, partly attributed to temporary motor vehicle plant shutdowns and disruptions from Hurricane Beryl, surpassed economists' expectations of 236,000 claims. Despite this rise, layoffs remain generally low, with the June layoffs rate at its lowest in over two years. A separate report showed a significant drop in planned job cuts by U.S. companies in July, though hiring plans have reached their lowest year-to-date total since 2012. Federal Reserve Chair Jerome Powell noted that these labor market changes are being closely monitored to determine if they indicate a broader trend.

Gold is showing signs of resuming its bullish trend, with potential to reach $2,500 per ounce. Silver is rebounding from support levels, with $30 as a key resistance point. Copper is finding support just above $400, with the possibility of a strong rebound or continued downtrend. All three metals are at critical junctures, with specific technical indicators and price levels to watch for confirmation of their next moves. Gold's potential to test its all-time high, silver's possible push towards $30, and copper's consolidation near $400 are key focus points for investors and traders in the precious and industrial metals markets.

VanEck's Gold Miners UCITS ETF has reached $1 billion in assets under management, reflecting strong global demand for gold amid economic uncertainties and geopolitical tensions. The ETF tracks major gold and silver mining companies, benefiting from record-high gold prices exceeding $2,300. VanEck's CEO Martijn Rozemuller notes that investors are seeking gold as a safe haven asset, while Portfolio Manager Imaru Casanova suggests gold mining stocks may outperform bullion. The ETF offers diversified exposure to the gold mining sector, with top holdings including Newmont Corporation, Agnico Eagle Mines, and Barrick Gold Corporation.

WisdomTree Shares their Silver Outlook to Q2 2025. Silver has outperformed other precious metals this year, with a 22% return compared to gold's 13%. Despite recent pullbacks in both industrial metals and gold, silver's tight supply and increasing demand suggest it could continue to rise. The World Gold Council expects silver to remain in a supply deficit, with demand outstripping supply as it did in 2023. This outlook is bolstered by silver's industrial uses and its correlation with gold, although price trends could pose some risks.