Precious metals news

Discover the hidden dangers lurking in today’s stock market and learn essential strategies to safeguard your investments.

In China, several gold shops have suddenly vanished, along with the gold they were supposed to deliver to customers, sparking a frantic search by both police and the affected clients to locate the missing stores and recover the vast amounts of gold.

Gold prices have soared to a new all-time high of over $2,250 an ounce, marking a 38% increase from its 2022 low. Some experts, like Tim Hayes of Ned Davis Research, say this surge in gold prices is seen as even more bullish than the current positive trends in stocks. However, others advise that gold should serve as a diversification tool rather than a primary investment in portfolios. Notably, Warren Buffett, a prominent investor, traditionally avoids gold, underscoring its distinct role compared to stocks or bonds.

Gold prices have continued to rise for the sixth consecutive day, nearing the record highs set just the day before, around $2,265-$2,266. This surge is happening against a backdrop of increasing doubts about the Federal Reserve's potential to lower interest rates three times within the year, spurred by positive U.S. manufacturing data. Additionally, escalating geopolitical tensions in the Middle East are dampening investors' willingness to engage with riskier assets, further boosting gold's appeal as a safe-haven asset amidst a stronger U.S. dollar and a generally softer risk sentiment in the market.

The discrepancy between the Federal Reserve's favored inflation metric, the Core Personal Consumption Expenditures (PCE) index, and the more commonly followed Consumer Price Index (CPI) has reached one percentage point difference, largely due to divergent approaches in calculating housing costs. This gap widens to 1.5 percentage points when focusing solely on shelter expenses, although this is partially balanced out by other factors. A recent analysis by Wells Fargo's economists, Sarah House and Aubrey George, delves into these variances, highlighting the significant impact of how shelter costs are factored into these crucial economic indicators.

U.S. crude futures reached $85 for the first time since October, driven by a mix of OPEC+ production cuts, sustained strong demand, and rising geopolitical tensions. The surge saw West Texas Intermediate (WTI) futures climb by up to 1.8% in New York, with the global Brent benchmark closely approaching $89 a barrel. This price jump is attributed to the effective market tightening by OPEC and its allies, alongside enduring high global consumption levels.

Silver, often dubbed the "poor man's gold," is on the brink of a significant technical breakout, mirroring the momentum gold has recently experienced. The recent surge in gold prices, achieving new highs, sets a compelling backdrop for silver's potential breakout. The extended consolidation period silver has undergone hints at a significant upside once it overcomes resistance. This could not only propel silver towards the $30 mark again but, more ambitively, drive it towards its historic high of $50, catalyzed by technical buying reflective of its prolonged accumulation phase.

Japanese Finance Minister Shunichi Suzuki expressed concern over speculative trading in the currency market, which he believes is leading to an excessive decline in the yen's value that doesn't align with economic fundamentals. During a parliamentary address, Suzuki emphasized the government's readiness to intervene in the market to counteract these excessive fluctuations, stating that all options are on the table. He attributed the yen's movements to various factors, including the Bank of Japan's shift from negative interest rates, Japan's current account balance, price changes, geopolitical risks, and market sentiment.

Inflation rates have shown a significant decrease to 3.2% in February from a peak of 9.1% in June 2022, marking a decline from the highest levels observed, as per Trading Economics data. However, this rate still exceeds the preferable sub-2% rate seen before the pandemic, indicating inflation remains a concern. Inflation's impact reduces the purchasing power of cash substantially, with a 3% rate diminishing it by about a third over ten years. This trend of inflation exceeding the 2% target has persisted since 2021, underscoring ongoing economic challenges despite recent improvements.

On the first day of Q2 trading, crude oil futures experienced a price increase following reports of a missile strike on the Iranian consulate in Damascus, Syria. West Texas Intermediate for May delivery rose by 54 cents to $83.71 a barrel, while Brent for June delivery climbed 42 cents to $87.42 a barrel. Reports indicated that the strike, attributed to Israel, resulted in casualties including Mohammad Reza Zahedi, a senior commander of Iran’s Revolutionary Guard. Analyst Leo Mariani suggested that this incident could escalate Middle Eastern conflict, potentially driving oil prices higher in the near term.

Citigroup analysts have recently indicated that the likelihood of a global recession is now almost 50%, exacerbated by rapid interest rate hikes by central banks aimed at combating inflation. This inflation spike has been attributed to the aftermath of the Ukraine conflict and the ongoing COVID-19 pandemic. The analysts warn that the path to disinflation could significantly hinder growth, reflecting a grim outlook for global economic expansion over the next year and a half. Similarly, Barclays has highlighted the fragility of the global economy, projecting a slowdown to just 1% growth for developed economies in 2023, with the euro area expected to slip into recession by the end of the fiscal year.

The price of gold reached an all-time high, fueled by anticipation of potential Federal Reserve interest rate cuts, amid ongoing geopolitical conflicts and strong demand from China. The price of bullion surged to $2,265.73 an ounce, a 1.6% increase from its previous close, continuing its streak of record-setting performances. This rally has been partly driven by the latest data on the Fed's preferred inflation measure, the core personal consumption expenditures index, which showed a decrease in February, signaling a possible easing in borrowing costs despite the Fed's cautious stance.

Gold prices soared to a new record high, as expectations for U.S. interest rate cuts gained momentum following the release of encouraging inflation data. On Monday, gold futures climbed by more than $40, reaching $2,278.30 an ounce, marking a historic peak. This surge is part of a broader trend, with gold finishing March with an 8.9% increase and closing the quarter up by 8%. The rally in gold prices is largely attributed to recent U.S. inflation figures coming in below expectations, suggesting the Federal Reserve might consider reducing interest rates as early as June. The anticipation grew after data showed the Fed's preferred inflation measure, the core deflator, slowed to 0.3% in February from 0.5% the previous month.

Welcome to the world of modern economics where the term "inflation" no longer signifies the increase in the quantity of money, but has evolved into a plethora of buzzwords. From "shrinkflation" to "greedflation," these new terms and semantic shifts are by no means harmless but a manipulation of popular sentiment. Von Mises said they play "an important role in fomenting the popular tendencies toward inflationism."

While the U.S. is bragging about being the world's largest oil producer, it is also draining its oil reserves at the fastest rate compared to the other leading countries.  Worse yet, it is exporting nearly one-third of its domestic fast-reserve-depleting oil supply overseas... BRAVO...

When unemployment and inflation cause skyrocketing incentives for thieves to steal industrial metals like copper, criminals rush for some of the biggest sources: critical infrastructure. That includes cell towers, water pipes, street lights, and rail lines. These copper heists threaten transportation, communication, municipal services, urban safety, and other essentials of modern life. 

JD and Joel discuss why gold's breakout past the $2,200 resistance level means higher highs from here on out. Higher prices are driven by a dovish Fed, weakness in the dollar, and poor economic data. This week they also discuss Peter's most recent appearance.

If the Green Energy transition couldn't get any worse... I give you the U.K. DRAX Biomass Powerplant Boondoggle.  Someone thought it was a good idea to switch the U.K.'s largest coal-fired power plant to burning wood pellets until you peel back the layers and look into the massive global supply chain...

Larry Fink, CEO of BlackRock, the world's largest asset manager, has issued a dire warning about the United States' escalating national debt, now exceeding $34 trillion. Echoing concerns raised by Jamie Dimon and Jerome Powell, Fink emphasizes the urgency of the situation, likening potential outcomes to Japan's economic stagnation during its 'lost decade.' He highlights the peril of assuming that investors will indefinitely support the U.S.'s growing fiscal deficit. Additionally, Fink points out the danger of the recent rise in U.S. Treasury yields to 4%, a result of inflation expectations and the Federal Reserve's aggressive rate hikes.

Will HSBC’s new gold token mark the start of a new era in gold investing? Or is it simply another ‘paper gold’ mirage?