Precious metals news

The recent deal to raise the federal debt limit includes additional work requirements for some SNAP (food stamp) recipients. Despite misconceptions, SNAP, a major federal welfare program, has been in place for nearly 60 years. In April 2023, 41.9 million people (12.5% of the U.S. population) in 22.2 million households received SNAP benefits. The program operates nationwide and in select U.S. territories, with an average of 41.2 million recipients monthly in the 2022 fiscal year. Since its establishment in 1964, the program's reach has significantly expanded.

The Biden administration announced the cancellation of $7.7 billion in student debt for 160,500 borrowers, focusing on public servants and participants in the new SAVE repayment program. This effort is part of a broader initiative to provide relief after the Supreme Court blocked a previous loan forgiveness plan, bringing the total forgiven to $167 billion for 4.75 million people. This move aims to alleviate financial burdens amid rising concerns about the cost of college, with fewer Americans believing that a college education is worth the debt incurred.

Public dissatisfaction with inflation is impacting the reputation of major consumer brands like Walmart, McDonald's, and Amazon. Despite price increases slowing, their effects linger, causing declines in trust scores for various industries, including clothing, quick-service restaurants, and grocers, as reported by the Axios Harris Poll 100. The phenomena of sticker price hikes and "shrinkflation" have fueled political debate, but consumer buying habits remain largely unchanged, even as companies like Coca-Cola and PepsiCo pass on higher costs with minimal backlash.

Copper prices stabilized after experiencing their biggest drop in nearly two years. The decline followed an all-time high of over $11,000 per ton, driven by profit-taking and reduced demand from Chinese factories unwilling to pay record prices. The drop was also influenced by hawkish comments from Federal Reserve officials regarding inflation. Despite this, China's commitment to increasing stimulus and tightening supplies may keep prices high in the short term.

For decades, US Treasuries have outperformed gold as a safe investment. However, this trend is shifting due to growing debt concerns. While bonds have traditionally been favored for their steady income and backing by the US economy, recent years have seen declining returns, with the Bloomberg Treasury Total Return Index dropping 11% from its 2020 peak. In contrast, gold, valued as a scarce commodity and inflation hedge, has seen a 15% gain this year, challenging bonds' status as the ultimate haven.

According to market expert Ed Yardeni, one group has injected $76 trillion in savings into the economy and are primarily responsible for helping prevent a recession: Baby Boomers. Their increased spending on services like restaurants, travel, and healthcare is boosting payrolls and incomes, countering traditional recession indicators that focus on the goods economy. Yardeni argues that this generation's spending habits, particularly as they retire, are crucial in sustaining economic growth despite widespread recession fears.

Silver is up roughly 33% year to date, driven by factors like growing industrial demand and its emerging role as a hedge against inflation.

As the Federal Reserve approaches the end of its inflation-fighting efforts, a key question arises: will prices for goods continue to drop? Significant declines in prices for items like apparel and used cars helped reduce inflation faster than expected in late 2023, but the pace has slowed in early 2024, leading to higher inflation readings. Policymakers are divided on whether supply chains have fully recovered from pandemic and war disruptions. Fed Chair Jerome Powell is optimistic about further price reductions, while some colleagues remain doubtful.

The number of Americans filing for unemployment benefits decreased last week, indicating a strong labor market that continues to bolster the economy. This marks the second consecutive weekly decline, reversing most of the earlier increase this month. Despite slower job growth due to past Federal Reserve rate hikes, layoffs remain low. Initial claims fell by 8,000 to 215,000, below the forecasted 220,000, with significant drops in California and Indiana. Economist Robert Frick noted that the feared increase in claims has not materialized, affirming the labor market's robustness.

Global business activity improved this month, especially in parts of Asia and Europe, which may delay central banks' plans to cut interest rates. Borrowing costs had been raised post-COVID to tackle inflation, and there's now speculation about when and how much they might be reduced. Politicians, facing upcoming elections in India, the US, and the UK, may welcome relief for indebted consumers. Despite previous slowdown fears, the global economy is expected to remain strong through 2025, with economists predicting persistent inflation that could influence future rate decisions.

While global petroleum production is at an all-time new high, the RED QUEEN SYNDROME continues devouring the oil industry from within.  Interestingly, the record global oil supply came from NGLs, not crude oil and condensate.  These are five must-see charts. According to the EIA - U.S. Energy Information Agency, total...

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Join Mike Maloney in this in-depth analysis as he confirms a significant breakout in silver, with implications for traders and investors alike.

Copper has gone mad: Liquidated shorts from a flood of speculators, an AI bubble, a supply crisis, and a renewable energy craze have all combined with high global inflation to recently send it to historic all-time highs. While I believe there will be major corrections as some of these factors come back down to earth, the most important one — out-of-control inflation — will ultimately send copper even higher in the longer-term.

Commodities expert Jeffrey Christian dismissed the notion of de-dollarization as a "myth," asserting that there is no significant shift away from the US dollar despite increased rhetoric from countries like Russia and China. Christian emphasized that the fear of the dollar being displaced as the dominant global currency is unfounded, labeling the idea as a persistent but baseless concern.

The dollar strengthened on Wednesday as investors awaited the Federal Reserve's meeting minutes for clues on the future of interest rates, while the British pound stabilized following data showing a drop in UK inflation in April. Despite a milder U.S. inflation reading last week, Fed officials remain cautious, with Governor Christopher Waller and President Loretta Mester indicating a need for more consistent data before considering rate cuts. The upcoming Fed minutes are expected to shed light on the central bank's stance regarding inflation and potential rate adjustments.

Federal Reserve Chair Jerome Powell and other officials have shifted from providing explicit guidance on interest rate cuts to discussing various economic scenarios amid growing uncertainty in their effort to control inflation. This change highlights the Fed's current unpredictability and focuses on different potential economic outcomes rather than detailed projections. This "scenario analysis" approach is intended to address the complexity of the economic landscape and the Fed's adaptive response strategies.

Oil prices fell to near three-month lows as reports indicated rising US crude inventories, with Brent trading around $82 a barrel and West Texas Intermediate below $78. The American Petroleum Institute reported a 2.5 million barrel increase in stockpiles, contributing to market bearishness. The upcoming OPEC+ meeting will determine whether to extend supply curbs amid a contango market structure signaling increased supply. Despite geopolitical risks, such as recent drone strikes on Russian refineries, oil futures have weakened since mid-April.

Despite concerns about the U.S. economy, the junk-bond market is thriving, with the risk premium for sub-investment-grade debt narrowing to near pandemic lows. This trend, driven by cooling inflation and hopes for interest-rate cuts, has attracted $3.7 billion into junk-bond funds this year. Investors seeking high yields around 8% have fueled $131 billion in speculative-grade bond sales from companies like Block and Icahn Enterprises, significantly up from $71 billion last year.

Gold prices dipped by 0.3% to $2,413.96 per ounce on Wednesday as investors awaited the Federal Reserve's latest meeting minutes for clues on interest rate cuts. After reaching a record high earlier in the week, gold is consolidating its gains. The market remains strong with a buy-on-dip mentality, despite the potential for short-term stagnation without further support from the dollar. Recent economic data suggests a downtrend in inflation, but Fed policymakers are cautious about cutting rates until inflation targets are securely met.