Precious metals news

Bitcoin is emerging as a potential global reserve currency, challenging the dominance of the US dollar and potentially reshaping the world order. As countries seek alternatives to the dollar due to geopolitical tensions and economic instability, Bitcoin's decentralized nature, fixed supply, and growing adoption by sovereign nations make it an attractive option. This shift could lead to a multi-polar world order with a decentralized reserve currency, rather than one dominated by a single nation's currency.

Goldman Sachs argues that the recent rise in U.S. unemployment is not signaling an imminent recession, despite historical indicators suggesting otherwise. They cite three reasons: the layoff rate remains low, an increase in labor supply is driving the unemployment rate rather than job losses, and the Federal Reserve has ample room to cut interest rates if needed. These factors suggest that the economy is not experiencing the usual negative feedback loop of job losses leading to reduced spending and further job losses.

The Federal Reserve is expected to maintain current interest rates at its July 30-31 meeting, but economists anticipate signals for potential rate cuts starting in September. With inflation cooling and the labor market showing signs of moderation, the Fed is likely to consider easing its monetary policy. While most experts predict a 0.25 percentage point cut in September, followed by possible additional cuts later in the year, the exact timing and extent of rate reductions will depend on ongoing economic trends. The Fed's decision-making process balances its dual mandate of price stability and maximum employment.

About an hour south of Dallas, Texas, sits the world's largest Bitcoin Mining Facility—RIOT Platform's Corsicana Facility.  And when I say a "Boondoggle," I mean it.  When Riot's Corsicana Facility is completed and running at full capacity, it will consume the same power as running 600,000 homes...

The Federal Reserve is expected to signal a potential interest rate cut in September, marking a significant shift in monetary policy after two years of aggressive inflation fighting. This move could boost the economy by lowering borrowing costs for mortgages, auto loans, and credit cards. While markets anticipate multiple rate cuts in 2024, the Fed's pace and extent of reductions remain uncertain, depending on economic performance. The central bank is balancing concerns about inflation with the need to maintain a stable job market, and their decisions could have political implications in the upcoming election year.

Gold prices have surged recently due to geopolitical tensions, a weakening U.S. dollar, and expectations of rate cuts. Experts suggest various ways to invest in gold, including physical bullion, mutual funds, ETFs, and stocks of mining companies. While gold is considered a safe-haven asset and a hedge against inflation, financial advisors recommend aligning gold investments with long-term strategies and considering factors such as tax implications, storage, and liquidity. The article highlights different investment options, their pros and cons, and emphasizes the importance of making informed decisions rather than reacting to market trends.

Jeffrey Christian, a commodities expert, argues that the movement towards de-dollarization by countries like Russia and China is a misguided trend that could backfire. Christian believes that the dominance of the U.S. dollar in global financial markets is unlikely to wane soon, and efforts to phase out the dollar could lead to liquidity issues and slower economic growth for these nations. Christian contends that the logistics of shifting to a multi-currency regime are extremely challenging and that the dollar's widespread use and liquidity make it indispensable.

The focus on the Federal Reserve's interest rate decisions is misplaced, as the real influence lies in the Fed's massive asset holdings, which have significantly expanded since the 2008 financial crisis and the 2020 pandemic. While rate cuts are anticipated, the Fed's balance sheet, now at $7.3 trillion, plays a crucial role in shaping financial conditions and inflation. The Fed's asset purchases have increased the money supply, contributing to recent inflation surges. Shrinking the balance sheet would help stabilize prices, but current signals suggest the Fed will maintain its large holdings, impacting the broader economy and financial markets.

Heraeus presents a bullish outlook for gold based on four key factors: the potential for a Trump presidency, expectations of a weaker dollar under a Republican administration, growing but not yet saturated speculative positions, and room for increased gold investment. These factors, including political uncertainty, reinflationary policies, and anticipated interest rate cuts, are seen as potential drivers for higher gold prices in the latter half of 2024. The analysis suggests that while gold investment has increased, there's still significant potential for growth, particularly if momentum shifts from Eastern to Western markets.

Market volatility is increasing ahead of a crucial week featuring central bank decisions, major company earnings reports, and key economic data. Traders are positioning for potential Federal Reserve rate cuts, while also considering the possibility of a rate hike from the Bank of Japan. This has led to heightened activity in options markets, particularly for currencies like the yen and euro, as well as in equity and interest rate markets. The week's events, including earnings from tech giants and the US jobs report, are expected to significantly impact market movements, with traders adjusting their strategies accordingly.

Traders are anxious about the upcoming central bank meetings in Tokyo, Washington, and London, which are expected to provide crucial insights into global monetary policy. The Bank of Japan's potential rate hike, along with anticipated rate cuts from the Federal Reserve and Bank of England, are key concerns. These decisions could significantly impact currency values and bond yields, with markets already experiencing volatility due to mixed economic signals. The outcomes of these meetings will have a large impact in shaping market sentiment and economic forecasts.

The recent reduction in customs duty on gold imports in India's 2024 budget is expected to significantly alter the gold purchasing habits of Indian consumers, making it less attractive to buy gold from Dubai. This change narrows the duty differential, resulting in lower gold prices in India and boosting local gold jewelry production. Indian jewellers anticipate that a substantial portion of their business will shift from the UAE to India, as the reduced import duty allows them to offer competitive prices. Additionally, the lower labor costs and mandatory hallmarking in India enhance the appeal of buying gold domestically.

China, traditionally a major consumer of gold, is showing signs of weakening demand for gold jewelry, as evidenced by recent data and industry reports. This trend is attributed to rising gold prices and consumer resistance to higher costs. Despite this decline in consumer demand, central bank purchases of gold remain strong, contributing significantly to gold's price performance in recent years. The shift in Chinese consumer behavior towards gold jewelry contrasts with the country's continued strategic interest in gold as a reserve asset.

Gold prices edged higher on Monday due to increased geopolitical tensions in the Middle East and expectations of a U.S. interest rate cut in September. Spot gold rose by 0.3% to $2,391.80 per ounce, driven by anticipation of the Federal Reserve's policy meeting this week. Analysts suggest that a dovish stance from the Fed and softer jobs data could push gold prices towards $2,450. Despite recent declines, gold remains a favored hedge against geopolitical and economic risks, with demand potentially bolstered by ongoing Middle East tensions and strong consumption in China.Gold prices edged higher on Monday due to increased geopolitical tensions in the Middle East and expectations of a U.S. interest rate cut in September. Spot gold rose by 0.3% to $2,391.80 per ounce, driven by anticipation of the Federal Reserve's policy meeting this week. Analysts suggest that a dovish stance from the Fed and softer jobs data could push gold prices towards $2,450.

Oil prices are hovering near six-week lows as concerns about global demand outweigh positive economic data from China and renewed tensions in the Middle East. Despite China's industrial profits showing growth and potential supply risks due to conflicts in Israel, the overall sentiment in the oil market remains subdued. This is largely due to China's recent weak economic growth and reduced oil import volumes. The upcoming OPEC+ meeting and Federal Reserve interest rate decision are key events that could influence oil prices in the near term.

U.S. regional banks are increasingly selling underwater bonds at a loss to prepare for anticipated interest rate cuts by the Federal Reserve. Unlike the panic induced by Silicon Valley Bank's similar actions last year, these banks are reinvesting the proceeds into higher-yielding securities to benefit from future lower rates. This strategic move, undertaken by banks like PNC Financial Services and Truist, aims to enhance long-term net interest income despite short-term losses.

What a strange and bizarre weekend.  First, there was public outrage over the "Trans-version of the Last Supper" during the opening ceremonies at the French Olympics.  Then, there was Presidential Candidate Donald Trump, promising that the United States would become the Bitcoin Superpower of the world...

The FBI is warning about a widespread scam targeting seniors and others, where fraudsters convince victims that their bank accounts are compromised. The scammers then persuade victims to withdraw large sums of cash or purchase gold bars, which are collected by fake couriers posing as officials. This scheme has resulted in significant financial losses for victims, often amounting to hundreds of thousands or even millions of dollars. The FBI is actively investigating these cases and urging the public, especially seniors, to be vigilant against such fraudulent activities.

According to a Bloomberg survey of economists, the Federal Reserve is expected to signal its intention to cut interest rates in September at its upcoming July 30-31 meeting. While keeping rates unchanged at this meeting, the Fed is likely to use either its policy statement, Chair Powell's press conference, or both to indicate the upcoming rate cut. This move is anticipated to initiate a series of quarterly rate reductions through 2025, reflecting the Fed's growing confidence in inflation control and a balanced labor market. However, some economists believe the Fed may wait until later, possibly at the Jackson Hole symposium in August, to solidify this message.

An investigation by IJF and CTV National News has uncovered a concerning trend in Canada where multiple money services businesses (MSBs) are registered at the same address, often without the knowledge or consent of the actual occupants. This practice, which includes foreign currency dealers, money transfer businesses, and cryptocurrency exchanges, raises red flags for potential money laundering and terrorist financing. Financial crime experts warn that this goes against the spirit of Canada's registration requirements for high-risk businesses, with some of these MSBs allegedly involved in fraudulent investment schemes. The investigation highlights critical gaps in Canada's enforcement regime, allowing potential financial criminals to exploit the system.