Precious metals news

The United States experienced a significant cooling in inflation rates in June, with prices rising by only 3% over the past 12 months, marking the slowest pace in a year. This decline, largely attributed to lower gasoline prices, represents the third consecutive month of easing inflation. The trend is easing financial pressures on households and potentially paving the way for the Federal Reserve to consider interest rate cuts as early as September. While some staples like groceries and housing costs continue to rise, the overall inflation picture is improving, offering a glimmer of hope for the economy and potentially alleviating some of the economic dissatisfaction faced by the current administration.

As student loan debt in America swells to a staggering $1.7 trillion, President Joe Biden's new SAVE plan could actually cost $230 billion, a CBO report finds. This is not only a classic case of robbing Peter to pay Paul — it will bring more inflation, make college more expensive and give the federal government unprecedented control over higher education.

Gold closed the week at $2,410 (up $19) and silver at $30.77 (down $0.43). JD and Joel interview Representative Ken Ivory, the man behind Utah's recently-passed HB 348 law. This law enables the state to invest 10% of its $1.4 billion rainy day fund into gold and silver, stored in Brinks Salt Lake City. They also unpack the big CPI news and Fed rate cut expectation.

With the retirement of nearly half of the U.S. Coal Generating Capacity in the past 15 years is Coal-Fired Power... DEAD?  I don't think so.  Matter-a-fact, if natgas power generation gets into trouble, there is plenty of spare coal-fired capacity that can come online...

Gold climbs above $2,415 mark as US Inflation data boosts rate-cut expectations; silver rises to $31.50

Gold futures experienced a significant surge on Thursday, approaching record highs following the release of U.S. inflation data showing a cooling trend. The Consumer Price Index (CPI) reported a 0.1% decrease in June, the first decline since May 2020, which investors interpreted as potential justification for the Federal Reserve to implement interest rate cuts. This unexpected downturn in inflation has bolstered sentiment among those anticipating earlier rate reductions. As a result, August gold futures on Comex rose by 1.8% to $2,421.90 an ounce, nearing the all-time intraday high of $2,454 and settlement high of $2,438.50 set on May 20.

Deutsche Bank's latest Global Mining & Commodities Survey reveals a shift in investor preferences, with gold emerging as the favored commodity in the short term, while copper maintains its appeal for the medium term. This change is driven by concerns over China's economic slowdown and potential delays in the energy transition. The survey indicates a growing preference for early-cycle commodities like iron ore and coal, alongside expectations of easing supply constraints for metals crucial to decarbonization efforts. While ESG factors continue to influence perceptions of the mining sector, investors are increasingly focused on local environmental issues such as water stress and community relations.

Gold prices are surging, approaching all-time record highs despite initial concerns over China's reserve holdings. The precious metal has gained $51, reaching $2422, driven by a combination of factors including potential rate cuts, economic growth concerns, large deficits, political instability, and geopolitical tensions. This rally demonstrates gold's enduring appeal as a safe-haven asset in times of uncertainty. While the current price is nearing the all-time high closing level, it remains just shy of the intraday record of $2449 set in May, suggesting further potential for growth in the near future.

The latest Consumer Price Index (CPI) report reveals a significant cooling in US inflation for June 2023. For the first time since May 2020, the monthly headline CPI showed a negative value, decreasing by 0.1%. The annual inflation rate slowed to 3%, the lowest since March 2021, beating economists' expectations. Core inflation, which excludes volatile food and energy prices, also showed moderation, rising just 0.1% monthly and 3.3% annually. This data suggests a continued trend of easing inflationary pressures in the US economy, leading to positive market reactions, including a notable drop in Treasury yields.

Treasury yields experienced a significant decline following the release of favorable inflation data, which has increased market expectations for at least two Federal Reserve interest rate cuts in 2024. The drop in yields was observed across all maturities, with short-term rates particularly affected due to their sensitivity to Fed policy changes. Traders have now priced in a high probability of a rate cut in September, with some analysts predicting up to three cuts by year-end. This shift in market sentiment has led to a rally in Treasury bonds, potentially impacting upcoming auctions and reflecting growing investor confidence in a more dovish Fed stance in response to cooling inflation.

Uganda has announced plans to purchase domestic gold to bolster its foreign exchange reserves and mitigate investment risks, joining a growing trend among African nations. This strategy, which also aims to support local miners and reduce raw gold imports, mirrors similar initiatives in Nigeria, Zimbabwe, and Ghana. These countries are turning to gold as a means to stabilize their currencies, combat inflation, and address economic challenges stemming from the COVID-19 pandemic and global economic pressures. Uganda's approach is part of a broader effort to strengthen its economy, which has shown resilience due to proactive monetary policies and strategic currency management.

An inverted Treasury yield curve has historically been associated with economic downturns, preceding every recession since the late 1960s. Earlier this year, it set a new record for remaining inverted for more than 624 days, which was the 1978 record.

U.S. economic data is hitting headlines yet again—this time, due to serious concerns about its continued reliability.
“Federal statistical agencies face increasing challenges to their ability to produce relevant, timely, credible, accurate, and objective statistics,” researchers of the American Statistical Association revealed. “Immediate action is needed to put the agencies … on a firmer footing so that federal statistics remain widely trusted and useful….”

With the Gold and Silver Prices surging higher today, news of a Chinese trader taking on JP Morgan hit the Alt-Media airwaves today.  So, is there a Big Chinese Trader taking on JP Morgan?  If so, why are precious metals investors selling rather than buying metal...

Federal Reserve Chair Jerome Powell, in his recent congressional testimony, acknowledged progress in curbing inflation but emphasized the need for more consistent data before considering interest rate cuts. While expressing some confidence in inflation's downward trend, Powell remains cautious about declaring it sustainably approaching the Fed's 2% target. He highlighted the delicate balance between addressing inflation and maintaining employment, noting that the risks of acting too quickly or too slowly on rate adjustments are now more evenly balanced. Powell's stance suggests a cautious approach to monetary policy changes, with the Fed closely monitoring economic indicators before making any decisions on rate cuts.

The S&P 500 has reached a historic milestone, surpassing 5,600 points for the first time, driven by a strong rally in major technology stocks. This surge comes amid growing investor optimism for potential Federal Reserve rate cuts, bolstered by Fed Chair Jerome Powell's congressional testimony. The market's upward trajectory is further supported by positive news from tech giants like Apple and Nvidia, as well as stable Treasury yields. While the rally is broad-based, with the Nasdaq 100 also showing significant gains, some sectors like banking are underperforming. This record-breaking performance occurs as Wall Street anticipates key economic data and the start of the earnings season, highlighting the current bullish sentiment in the market

Social Security faces an unsustainable future due to prolonged deficits and demographic shifts. With an aging population and decreasing workforce, the program may struggle to meet its obligations to retirees as early as 2035. Both major political parties acknowledge the issue, but proposed solutions vary, ranging from increasing taxes on high-income earners to stimulating economic growth. The next administration will face difficult decisions to ensure the program's long-term viability, potentially involving spending cuts, tax increases, or a combination of both.

Sprott Inc. has launched the Sprott Physical Copper Trust on the Toronto Stock Exchange, holding over 10,000 metric tons of copper, mainly in Asia. Despite plans to raise an additional $500 million to acquire 50,000 more tons, Sprott asserts the fund is too small to impact the global copper market, which produces 22 million tons annually. Unlike past controversial copper-backed funds from BlackRock and JPMorgan Chase, Sprott’s CEO John Ciampaglia believes their fund provides an alternative investment without significantly affecting market availability or prices.

Federal Reserve Chair Jerome Powell's recent testimony to Congress signals a potential shift in the Fed's approach to monetary policy. While acknowledging progress in combating inflation, Powell highlighted the cooling job market and the risks of maintaining high interest rates for too long. This balanced perspective suggests the Fed is moving closer to considering rate cuts, possibly as early as this year. Powell emphasized that while inflation remains above the 2% target, it has eased notably over the past two years. The Fed now faces the challenge of balancing its inflation fight with concerns about potentially weakening economic activity and employment, indicating a more nuanced approach to future rate decisions.

The gold market maintains a positive outlook, with analysts anticipating continued upward pressure. Technical analysis suggests that the recent consolidation may lead to further gains, potentially targeting the $2,425 level and beyond. Several factors support this bullish sentiment, including ongoing central bank gold purchases, potential Federal Reserve rate cuts if inflation eases, and persistent geopolitical concerns. The upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) releases are expected to be crucial in determining gold's short-term direction. Despite potential volatility, the $2,300 level has shown resilience as support, indicating that any dips may present buying opportunities for investors looking at gold's long-term bullish prospects.