Precious metals news

Gold prices are holding steady as investors await crucial U.S. inflation data this week, which will influence expectations for the Federal Reserve's upcoming interest rate decision. The Consumer Price Index (CPI) due on Wednesday and Producer Price Index (PPI) on Thursday are key indicators that could sway the Fed's decision between a 25 or 50 basis point rate cut. Currently, traders see a 75% chance of a 25-basis-point cut at the Fed's meeting next week. The market's reaction to these inflation figures could potentially push gold to new all-time highs if the data suggests a more aggressive rate cut, while even a 25-basis-point cut scenario is expected to maintain gold's strong position.

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Gold is trading near $2,500, attempting to overcome its historical tendency to decline in September, a pattern that's happened in 9 out of the last 10 years. Despite a recent dip to $2,470, gold has rebounded, buoyed by global economic slowdown concerns. This economic climate has increased risks for growth-dependent assets while simultaneously raising expectations for more aggressive interest rate cuts from the Federal Reserve, whose next meeting is scheduled for September 18. These factors are contributing to gold's resilience against its typical September weakness.

The stock market is experiencing its worst weekly decline since March 2023, with the S&P 500 and Nasdaq falling sharply following a disappointing August jobs report. The labor market data showed fewer job additions than expected and downward revisions for previous months, raising concerns about economic cooling. This has led to increased volatility in both stock and bond markets as investors reassess their expectations for Federal Reserve rate cuts. While the unemployment rate slightly decreased, the overall jobs report has intensified debates about the pace of economic slowdown and the Fed's potential response.

The US economy added 142,000 nonfarm payroll jobs in August, falling short of the 165,000 expected by economists. However, this was higher than July's revised figure of 89,000 jobs. The unemployment rate decreased to 4.2% from 4.3% in July. Wage growth increased to 3.8% year-over-year, up from 3.6% in July, with a monthly increase of 0.4%. While the job additions were lower than anticipated, some economists view the report as consistent with a "soft landing" rather than a recession.

Gold prices are holding steady above $2,500 per ounce as investors eagerly await US economic data, particularly the payrolls report, which could significantly influence the Federal Reserve's decision on interest rate cuts this month. Recent weak job market data has increased expectations for rate cuts, typically beneficial for gold as a non-interest-bearing asset. The precious metal has seen a substantial 20% rise this year, driven by rate cut optimism, strong over-the-counter purchases, and geopolitical tensions, with prices reaching a record high in August.

The upcoming US presidential election is creating uncertainty in the metals market, potentially limiting price gains until after November. Citigroup analysts suggest that factors like Federal Reserve rate cuts, China's economic policies, and global manufacturing sentiment will have a more positive impact on metals prices in late 2024 or early 2025, once the election is over. The election's outcome could affect global risk appetite and influence China's stimulus decisions, which are crucial for metals demand.

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Gold prices continued their upward trajectory in August, reaching a new all-time high before settling at $2,513/oz, a 3.6% increase for the month. This rise was primarily driven by a weaker US dollar and lower Treasury yields as the Federal Reserve hinted at potential rate cuts. Additionally, India's reduction in gold import duties boosted demand, while global gold ETFs saw continued inflows, particularly from Western funds. However, China's economic slowdown may impact consumer gold demand, contrasting with the positive trends seen in other markets.

Howard Marks, co-chairman of Oaktree Capital Management, predicts that US interest rates will stabilize between 3% and 4% after the Federal Reserve's upcoming rate cuts. Speaking at a conference in Melbourne, Marks suggests that while the Fed will reduce rates from their current "emergency" levels, they won't return to the near-zero rates seen in recent years. He believes the inflation emergency is over, but cautions that economic growth may slow and profit margins could erode as the economy returns to a more normal state, characterized by a mix of good and bad times.

China's young consumers are increasingly turning to gold jewelry as both a fashion statement and an investment. This trend is driven by a combination of factors, including rising gold prices, cultural resonance with traditional Chinese designs, and the perception of gold as a stable store of value. Many young buyers are attracted to gold jewelry that incorporates ancient crafting techniques and cultural elements, reflecting a broader "China chic" trend. Additionally, gold is seen as a hedge against inflation and a safer investment option compared to other assets like real estate or stocks in the current economic climate.

Gold is up 1% to near one-week highs on Thursday, driven by a weaker U.S. dollar and lower yields following signs of a cooling labor market. Investors are now anticipating a potentially larger-than-expected interest rate cut from the Federal Reserve this month. Recent data showing a decline in private sector hiring and job openings has increased expectations for a 50 basis point rate cut, with traders now seeing a 45% chance of such a move. The upcoming non-farm payrolls report on Friday is expected to provide further insight into the labor market's health and influence the Fed's decision-making.

Reporting from the Limitless conference in Dallas, Mike Maloney discusses the unsettling calm in the gold market as it reaches unprecedented highs.

Global gold ETFs experienced their fourth consecutive month of inflows in August, driven primarily by Western demand. North American funds led the charge, adding $1.4 billion, as cooling inflation, a weakening labor market, and dovish Fed signals bolstered expectations of interest rate cuts. The trend was supported by a weaker US dollar, lower Treasury yields, and heightened geopolitical tensions. European, Asian, and other regional funds also saw positive inflows, with gold prices nearing record highs and market conditions suggesting potential for further growth.

Gold prices are showing resilience as investors await crucial US labor market data, particularly the nonfarm payrolls report due on Friday. Recent job openings data suggesting a cooling labor market has increased expectations for aggressive Federal Reserve rate cuts, which typically benefit gold. The precious metal has gained over 20% this year, driven by anticipation of monetary easing, strong over-the-counter demand, and geopolitical tensions. While trading in a narrow range around $2,500, gold remains near its recent all-time high, supported by a weakening dollar and lower bond yields.

Gold's recent surge to all-time highs is driven by a combination of factors, including geopolitical uncertainties, increased central bank purchases (particularly from China), and a weakening US dollar. Keith Lerner, a strategist at Truist, suggests that gold remains an attractive investment option for portfolio diversification, citing its positive technical trends and potential as a hedge against currency fluctuations.

Join us in this insightful discussion with Alan Hibbard, Precious Metals Specialist at GoldSilver.com, as we delve into the current state of the gold

Gas prices in the U.S. are declining significantly, with the national average reaching a six-month low of $3.32 per gallon. This drop is attributed to falling oil prices, weakening gasoline futures, and the end of the summer driving season. Analysts predict that prices could potentially reach $3 per gallon by year-end, barring any major disruptions like hurricanes. The decline in oil prices, partly due to concerns over China's economy and increased OPEC+ supply, may prompt the oil alliance to reconsider its production policies.

In July, U.S. job openings fell to their lowest level since January 2021, with vacancies dropping to 7.67 million and layoffs rising to 1.76 million, the highest since March 2023. This decline in job openings, coupled with slowing job growth and rising unemployment, indicates a softening labor market, raising concerns about a potential recession. The Federal Reserve is closely monitoring these developments and is expected to consider lowering interest rates at its upcoming meeting. The August employment data, due soon, will be crucial in determining the Fed's next steps, especially if it shows further labor market weakness.