Precious metals news

The Japanese yen experienced dramatic fluctuations on April 29th, initially plummeting to a 34-year low of 160 against the dollar in early trading, only to rebound sharply later in the day. By the close of trading in Asia, the yen had recovered significantly, rising more than 2% to finish at 155 against the dollar. These swings highlight the ongoing challenges Japan faces in stabilizing its currency, which has seen a significant decline against the greenback over the past three years.

The U.S. Treasury has maintained its quarterly long-term debt issuance at $125 billion, while also announcing the initiation of its first buyback program in over two decades set to begin this month. These buybacks will involve 3-, 10-, and 30-year Treasuries. This decision follows three consecutive quarterly increases in note and bond sales, which reached record levels. The Treasury indicated earlier this year that no further increases are expected in the near future, and this stance was reiterated in their latest announcement. The easing of pressures on the Treasury is anticipated as the Federal Reserve may soon decelerate the reduction of its U.S. government securities holdings, a move expected by many market participants.

Peter appeared on OAN’s Real America with Dan Ball to discuss new prospective income taxes, the latest idiotic craze in politics.
He starts by explaining why President Biden’s desired policy isn’t even an income tax:

Major U.S. corporations, like McDonald's, are noting concerns about the financial strain on low-income consumers due to persistent inflation. Despite a slight slowdown in price increases since the Federal Reserve began hiking interest rates in early 2022, companies note that consumers are becoming increasingly cautious with their spending. McDonald's CEO Chris Kempczinski highlighted during an earnings call that elevated daily expenses continue to pressure consumers globally. This ongoing financial strain has contributed to a significant drop in consumer confidence, reaching its lowest point since mid-2022 as reported by the Conference Board.

In April, private payrolls surpassed expectations, increasing by 192,000 jobs according to ADP, despite predictions of 183,000. This gain, although slightly lower than March's revised total of 208,000, underscores the U.S. labor market's ongoing strength. Additionally, wages rose by 5% year-over-year, marking a multi-year low, which contrasts with persistent inflation that has exceeded the forecasts of many economists and policymakers.

Palladium has fallen below platinum for the first time since February, reversing its long-standing price advantage. This shift reflects a weakening demand outlook for palladium, primarily used in gasoline-powered car catalytic converters, exacerbated by a shift in automaker preferences towards the relatively cheaper platinum amidst a broader economic recalibration since the Covid-19 pandemic. Meanwhile, platinum benefits from positive market projections and increased demand in plug-in hybrid vehicles, which use more platinum-group metals compared to traditional engines.

U.S. Treasury yields edged lower on Wednesday in anticipation of the Federal Reserve's upcoming interest rate decision and monetary policy guidance. The 10-year Treasury yield dropped by a basis point to 4.67%, while the 2-year yield fell by about three basis points to 5.019%, remaining just above the significant 5% threshold it surpassed on Tuesday. This movement highlights the inverse relationship between bond yields and prices, where each basis point shift represents a 0.01% change.

The yen was once known as a safe-haven currency for investors to protect themselves when broader markets are shaky or other currencies are dropping, but those days are numbered. A stable government and consistent (and low) interest rates have been some of the driving factors, but it’s the unwinding of that ultra-low interest rate policy that will be the yen’s “safe haven” undoing as gold retains its protective characteristics and rockets upward.

This analysis attempts to look at different metrics to understand the current momentum in the gold and silver markets. It is meant as an analysis of potential price direction in the very short term (1-2 weeks).

Costs continue to increase at the world's two largest gold mining companies.  Newmont and Barrick both reported higher costs for the first quarter of 2024.  Also, what is the "Real" reason for the underperformance of gold mining stocks versus gold prices...

The U.S. dollar has strengthened significantly against virtually every major global currency this year, affecting nearly two-thirds of the 150 currencies monitored by Bloomberg. This shift, largely due to anticipations of Federal Reserve rate decisions amidst high inflation, has made U.S. assets more attractive and prompted a substantial influx of international capital into the U.S. This robust dollar, reaching heights last seen in the early 2000s, is having wide-reaching impacts from Brussels to Beijing and poses potential serious consequences for the global economy.

Despite expectations of economic tightening, Federal Reserve rate cuts appear unlikely as affluent Americans, particularly retiring baby boomers like Joan Harris, increase their discretionary spending. After retiring, Harris has significantly boosted her travel activities, indulging in more frequent and luxurious trips, including international destinations and first-class accommodations. Her newfound financial freedom, reflective of a broader trend among her demographic, supports continued consumer spending, which in turn sustains economic momentum and discourages rate reductions by the Fed.

McDonald's has reported a rare miss in quarterly profits, its first in two years, as it failed to meet analyst expectations due to budget-conscious consumers overlooking promotions amid broader economic concerns, including the impact from ongoing conflicts in the Middle East. This financial shortfall coincided with a continuing decline in global sales, marking a fourth consecutive quarter of slowed growth, with the latest figures showing an increase of only 1.9% compared to the anticipated 2.35%.

Tune in today for a much-requested update on Hedera Hashgraph with Brandon Hargreaves.

U.S. labor costs surged by 1.2% in the first quarter, marking the largest increase in a year and exceeding economists' forecasts, according to the Bureau of Labor Statistics. This rise in the employment cost index, a key indicator of wage and benefit costs, suggests ongoing wage pressures that contribute to persistent inflation. The data, which surprised markets, led to a drop in stock-index futures, an increase in Treasury yields, and a strengthening of the dollar.

In the first quarter of this year, the pace of pay and benefits growth for American workers increased, potentially heightening inflation concerns for the Federal Reserve. According to the Labor Department's Employment Cost Index, compensation rose by 1.2%, up from 0.9% in the previous quarter. This steady year-over-year growth rate of 4.2% could influence the Fed's decisions on interest rates, particularly with inflation fears looming as they conclude their latest policy meeting.

Patrick Gruhn, a German fintech entrepreneur and former FTX executive, purchased a gold pocket watch recovered from the Titanic for nearly $1.5 million at an auction, setting a record for Titanic memorabilia. The watch, which once belonged to American tycoon John Jacob Astor IV, was bought as a gift for his wife, Maren Gruhn, and will be displayed in museums. This sale was conducted by Henry Aldridge & Son, a renowned auction house specializing in Titanic items.

Last week Peter appeared on the Futures Radio Show podcast with Anthony Crudele. In their interview, they discuss the factors affecting gold’s price, why the Fed can’t control inflation, and the viability of Bitcoin.

Global gold demand reached its highest first quarter level in eight years, with a 3% increase to 1,283.3 metric tons, the strongest since 2016. This surge was driven by robust investments in the over-the-counter market, where trades more than tripled to 136.4 metric tons from last year's 42.7 metric tons, and record-breaking purchases by central banks. Joe Cavatoni of the World Gold Council highlighted the significant ongoing role of gold in emerging-market central banks' reserve portfolios, suggesting a strong outlook for the remainder of the year.

China's recent accumulation of a $170 billion gold reserve, following a record 27-tonne purchase that raised its total to 2,262 tonnes, has sparked concerns over its preparations for potential conflict regarding Taiwan. The People’s Bank of China's strategic buying, which began in October 2022 and marks the longest gold stockpiling period since 2000, appears to be a precaution against Western sanctions in case of escalating tensions with Taiwan.