Precious metals news

Canada has announced a stringent new policy regarding large mergers and acquisitions in its critical minerals sector. Industry Minister Francois-Philippe Champagne stated that such deals would only be approved under "the most exceptional circumstances," emphasizing the strategic importance of 31 identified critical minerals, including copper, lithium, and nickel. This policy shift, revealed alongside the conditional approval of Glencore's acquisition of Teck Resources' steelmaking coal business, signals Canada's intent to protect its strategic resources. The government will use the Investment Canada Act to assess the net benefit of these deals to the country, with a particularly high bar set for foreign investments in critical mineral producers, especially those involving copper mining companies.

Gold is poised for its second consecutive weekly gain, driven by expectations of potential Federal Reserve interest rate cuts before the end of the year. This optimism stems from recent data indicating a contraction in the U.S. services sector and a softening labor market. Investors are now eagerly awaiting Friday's U.S. payrolls report for further insights into the economic outlook. Gold's appeal has been bolstered by a weakening U.S. dollar and falling Treasury yields. The precious metal's upward trend extends its three-quarter rally, supported by significant central bank purchases, geopolitical tensions, and increased buying in Asia as investors seek to preserve value amid local currency depreciation.

Gold prices reached a one-month high following the release of U.S. jobs data that indicated a softening labor market. The report showed mixed results, with June's job growth slightly exceeding expectations but downward revisions for previous months and a rise in unemployment. This data has increased market expectations for a Federal Reserve interest rate cut in September, with a 72% probability. The prospect of lower rates, combined with a weakening dollar and declining Treasury yields, has made gold more attractive to investors. As a result, spot gold rose 0.7% to $2,371.58 per ounce, with some analysts predicting a potential return to all-time highs if the Fed hints at a September rate cut.

Certain climate scientists, research economists, and precious metal investors agree: This year could be one of the hottest on record.

Gold closed the week at $2,391 and silver closed up 7% at $31.20. JD and Joel explain what's beneath this massive price upswing, drill into recent US jobs reports, and ponder the hypocrisy of power-hungry politicians.

After nearly 10 months of issuing mostly short-term debt, the Treasury finally issued Notes in 2 of the last 3 months.

While the cost of fireworks is down compared to last year, prices of just about everything else are way up. That means individuals are still buying fireworks to light off themselves, but the size and scope of municipal fireworks shows are being downgraded in many towns and cities across the country — and in some areas, have been canceled entirely. 

While most Americans are out celebrating the Fourth of July, this isn't the case for Bitcoin investors and the Bitcoin Mining Industry.  The Collapse in Bitcoin Mining Revenue since the Havling in April spells Big Trouble for the Industry if the Bitcoin price doesn't recover...

Recent labor market data in the US indicates a slowdown in hiring and wage growth. ADP Research Institute reports show private companies hired at a more moderate pace in June, with wage increases cooling for both job changers and job stayers. Additionally, recurring unemployment claims have risen for nine consecutive weeks, suggesting difficulties in finding new employment. The data, released ahead of the government's June employment report, points to weakening demand for workers across various sectors, with notable exceptions in leisure and hospitality. These trends align with Federal Reserve Chair Jerome Powell's recent comments about a move towards balance in the labor market supply and demand.

The world is facing an unprecedented $91 trillion government debt crisis, nearly equivalent to the global economy's size. This massive debt, partly due to pandemic-related costs, threatens living standards even in wealthy nations like the United States. Despite warnings from the International Monetary Fund and growing investor concerns, politicians worldwide are largely avoiding addressing the issue, especially in election years. The situation is leading to increased market anxiety, with investors demanding higher yields on government bonds. This crisis may necessitate difficult decisions regarding tax increases and spending cuts, potentially impacting economic stability and risking a new financial crisis if left unaddressed.

Oil prices remained near a two-month high, with Brent crude holding above $86 a barrel, driven by reports of a significant drawdown in U.S. crude stockpiles. The American Petroleum Institute indicated a 9.2 million barrel decrease last week, potentially the largest since January if confirmed by official data. This year, oil prices have been bolstered by a positive sentiment in equity markets, concerns over an active hurricane season, and geopolitical risks, including tensions in the Middle East and upcoming elections in France, the UK, and Iran. However, concerns about weak U.S. gasoline demand persist.

Gold prices rose on Wednesday as the U.S. dollar weakened following dovish comments from Federal Reserve Chair Jerome Powell. Investors are now focusing on the upcoming minutes from the Fed's latest policy meeting for insights into potential interest rate cuts. The softening dollar, combined with Powell's acknowledgment of improving inflation trends, has made gold more attractive to investors. Market expectations now favor rate cuts in September and December, which could further boost gold's appeal as a non-yielding asset. However, upcoming economic data, including job reports, will play a crucial role in shaping the precious metal's trajectory.

Federal Reserve Chair Jay Powell has expressed concern about the United States' high budget deficits, warning that the current level of spending is unsustainable given the strong economy and low unemployment rate. Powell emphasized the need to address fiscal imbalances "sooner rather than later," noting that while the current debt level is manageable, the trajectory is not. His comments come amid growing worries about rising national debt, projected to reach 99% of GDP this year and potentially 122% by 2034. Powell's statements highlight the tension between fiscal policy and monetary policy, especially as both major political parties seem unlikely to prioritize deficit reduction in the upcoming election.

Turkey's inflation rate has unexpectedly decreased for the first time in eight months, dropping to 71.6% in June from 75.5% in May. This decline, which surpassed economists' predictions, marks the beginning of a disinflation process following aggressive monetary tightening measures. The government bonds rallied in response, while the Turkish lira remained stable. Officials are optimistic about rapid disinflation in the coming months, with some experts predicting inflation could fall to around 50% by August. This turnaround is crucial for investors who have been increasing their holdings in Turkish assets, and it may influence future monetary policy decisions.

Morgan Stanley analysts suggest that a potential Trump victory in the upcoming presidential election could significantly impact interest rates. While rates remained low during Trump's previous term and the early Biden administration, they surged in 2022 due to inflation caused by various factors. Now, with moderating inflation and economic growth, the focus is on when the Federal Reserve might start cutting rates. However, a Trump win could alter this trajectory, potentially leading to higher government borrowing and inflation expectations, which could influence the Fed's rate decisions and overall economic policy.

The US dollar has strengthened following a Supreme Court ruling that grants former President Donald Trump partial immunity from criminal charges related to the 2020 election. This decision reduces the likelihood of a trial before the November presidential election, increasing the perceived chances of a second Trump term. Traders anticipate that Trump's potential trade policies could further support a stronger dollar. The ruling's impact on the dollar is already evident, with the currency reaching its highest level since November and putting pressure on other global currencies, particularly the Japanese yen. Analysts suggest that Trump's potential inflationary policies could lead to a halt in Federal Reserve rate cuts, further bolstering the dollar.

European Central Bank President Christine Lagarde has stated that services inflation doesn't need to reach the 2% target for the ECB to consider interest rate cuts. While overall euro-zone inflation has moderated to 2.5%, services inflation remains high at 4.1%, largely due to wage pressures. Lagarde emphasized the need to balance goods and services inflation and consider the lagged impact of Europe's labor system on wages. This stance suggests a more nuanced approach to monetary policy, potentially allowing for rate cuts even if services inflation remains above target.

Federal Reserve Bank of Chicago President Austan Goolsbee suggests that the Fed should consider cutting interest rates if inflation continues to decline towards the 2% target. Speaking at an event in Portugal, Goolsbee emphasized that maintaining current rates while inflation falls effectively tightens monetary policy. He believes inflation is on track to reach the 2% goal, citing recent data showing slower price increases. This stance contrasts with the Fed's current approach of holding rates steady at a two-decade high while awaiting more conclusive evidence of inflation control.

U.S. Treasury yields are bolstering the dollar, putting pressure on low-yielding currencies like the Japanese yen and Chinese yuan. This trend is driven by expectations of a Trump presidency leading to higher tariffs and government borrowing. Investors are closely watching Federal Reserve Chair Jerome Powell's upcoming speech and U.S. job openings data for further market direction. The dollar index has risen, while the euro has retreated slightly following the French election results. Analysts suggest that Powell's potentially optimistic stance on disinflation could pose downside risks for the dollar.

The expiration of the Subchapter V bankruptcy protection filing, which made it easier for small businesses to seek relief, will now complicate the process for those with more than $3 million in debt. This filing type, introduced in 2020 and temporarily expanded during the pandemic, offered a cheaper and less time-consuming alternative to traditional Chapter 11 bankruptcy. It provided benefits such as shorter deadlines, greater flexibility in restructuring plans, and no U.S. Trustee quarterly fees. Data shows that Subchapter V filers had a higher rate of plan confirmation and fewer dismissals compared to other bankruptcy types. The reversion to the lower debt threshold may significantly impact small businesses seeking bankruptcy protection.