Precious metals news

Chicago Fed President Austan Goolsbee supports further interest rate cuts but suggests a slower pace may be appropriate. The Fed faces a debate on the speed and extent of rate reductions, with some officials concerned about stalled inflation progress and others worried about labor market cooling. Uncertainty surrounding President-elect Trump's policies adds complexity to the decision-making process. The upcoming December Fed meeting will be crucial in determining the next steps for monetary policy.

China has unearthed a massive gold deposit worth $83 billion in Hunan province. Geologists discovered over 40 gold veins containing 300 tonnes of gold within 2,000 meters depth at the Wangu gold field. This find could significantly boost China's gold production, which currently accounts for 10% of global output. The Hunan Academy of Geology predicts potential reserves exceeding 1,000 tonnes at depths beyond 3,000 meters.

Richmond Fed President Tom Barkin warns that the US economy is now more vulnerable to inflation shocks than in previous years. While expecting overall inflation to continue declining, Barkin notes that businesses are more readily passing costs to consumers. He expresses concern about potential inflationary impacts from proposed policies, including tariffs and immigration changes, under a potential Trump administration.

Gold prices continued their upward trend for the fourth consecutive day, driven by increased safe-haven demand amid disappointing tech earnings and ongoing geopolitical tensions. Spot gold rose 0.6% to $2,665.31 per ounce, with bullion up 4% for the week. Analysts attribute the surge more to falling stock markets following Nvidia's underwhelming forecast than to the Ukraine-Russia conflict.

UBS Global Wealth Management's chief investment officer, Themis Themistocleous, advises that gold is a more effective hedge than Bitcoin due to its lower volatility. Despite Bitcoin's recent rally, UBS cannot recommend it to private clients, citing its extreme price fluctuations. Themistocleous suggests that traditional hedges like gold offer better portfolio protection with less risk.

Several of the top primary silver miners continue to struggle to make a profit in the third quarter, even at higher silver prices.  Unfortunately, with the U.S. and central banks continuing to add debt and print money, the cost of producing silver will head even higher in the years ahead...

Archegos Capital Management's Bill Hwang awaits sentencing for orchestrating a massive fraud scheme that resulted in billions of dollars in losses for Wall Street banks. Convicted on 10 charges, including fraud and market manipulation, Hwang faces up to 21 years in prison as recommended by prosecutors. The case highlights the risks of excessive leverage and the need for greater oversight of opaque investment vehicles.

Bitcoin has surged to unprecedented levels following MicroStrategy's massive $4.6 billion purchase, pushing its total holdings beyond $30 billion. The company intends to raise $2.6 billion more for additional Bitcoin investments. The cryptocurrency hit $94,668, benefiting from post-election optimism and increased interest in Bitcoin ETF options, indicating market expectations of continued growth.

President-elect Trump intensifies his search for a Treasury secretary, scheduling interviews with Kevin Warsh and Marc Rowan. The expanded candidate pool, which includes Scott Bessent, aims to break the deadlock in selecting the nation's top economic policymaker. Senator Bill Hagerty, another potential cabinet contender, joined Trump for a SpaceX launch, highlighting the ongoing deliberations for key positions.

Economists predict a Federal Reserve rate cut in December, followed by a slower pace of reductions in 2025 than previously expected1. This shift is attributed to potential inflationary pressures from President-elect Trump's proposed policies, including tariffs and tax cuts. Despite strong economic indicators and stubborn inflation, most economists still anticipate a 25 basis point cut next month, though market expectations have become less certain.

The Market & System has taken a turn for the worse since the election.  The things I am seeing on social media and from financial news networks suggests that the market is going completely insane... I am serious.  Also, interest in the precious metals has totally disappeared...

Mike Maloney shares his optimism for the second half of this administration, thanks to the creation of the Department of Government Efficiency (DOGE).

A new report commissioned by the Silver Institute suggests that institutional investors should allocate 4-6% of their portfolios to silver for optimal diversification and risk reduction. The study, conducted by Oxford Economics, highlights silver's low correlation with other asset classes and its potential for strong returns, especially given its growing industrial applications in green technologies.

Switzerland, a global hub for gold refining, is grappling with calls for greater transparency in its gold trade. Despite a court setback, industry groups are pushing for more rigorous due diligence and disclosure of supplier information. The move aims to address concerns about human rights violations and environmental damage in gold mining while maintaining Switzerland's competitive edge in the sector.

The 30-year US Treasury yield reached its highest level since May, attracting buyers and supporting bond prices. Investors are reassessing economic expectations and Fed policy in light of Donald Trump's election victory. The high yields are providing a cushion for investors, while new corporate bond sales and uncertainty over Trump's Treasury secretary pick are influencing market dynamics.

State Street's 2024 Gold ETF Impact Study reveals a surge in gold investment, driven by economic uncertainty. Gold ETFs emerge as a preferred investment vehicle, with a majority of investors using gold for diversification and long-term gains. The study emphasizes the potential for growth in gold ETF adoption, particularly among younger investors.

Federal Reserve officials are taking a cautious approach to Donald Trump's potential policies, unlike in 2016 when they quickly adjusted forecasts based on expected fiscal changes. Chair Jerome Powell emphasizes waiting for concrete policy proposals before making economic projections, contrasting with the Fed's previous rapid response to Trump's election.

According to a model from the Cleveland Federal Reserve, rent inflation will likely remain high until at least mid-2026. Despite some indicators suggesting new rents are decreasing, the overall consumer price index (CPI) for rent is expected to stay elevated due to reduced turnover in leases. This situation complicates the Federal Reserve's efforts to communicate about inflation and may hinder their ability to cut interest rates, as rising shelter costs significantly impact inflation metrics.

HSBC is undergoing a major restructuring, with hundreds of managers competing to keep their jobs in the newly formed corporate and institutional banking division. The process involves interviews pitting senior staff from different units against each other, likely resulting in several hundred job cuts in the coming weeks.

President Joe Biden has approved Ukraine's use of US-made long-range missiles for limited strikes within Russian territory, marking a significant policy shift. This decision comes in response to the deployment of North Korean troops supporting Russia and recent Russian attacks on Ukrainian cities. The US-made ATACMS missiles, with a range of up to 300km, are likely to be used first against Russian and North Korean forces in Russia's Kursk region. This move has been met with criticism from Moscow, with Putin's spokesperson warning of an "appropriate" reaction. The decision comes just two months before Donald Trump, who is skeptical of additional military aid to Ukraine, takes office.