Precious metals news

According to the EIA, U.S. oil production plunged in January, supposedly due to a Big Freeze.  However, some sources believe the significant drop in production was due to other factors purposely overlooked by the U.S. Energy Information Agency...

On Thursday, Peter appeared on OAN’s Real America with Dan Ball to discuss the U.S. Strategic Petroleum Reserve, the costs of home ownership, and the debt crisis. Peter argues the Biden administration won’t be able to refill the reserve, given oil’s 22% price increase this year. With the CRB exploding, Jerome Powell’s claim that inflation is coming down seems unlikely to be true. 

Gold's impressive rally shows no signs of slowing, marking the start of the new quarter with unprecedented highs. This surge is primarily fueled by expectations of monetary easing from major central banks, coupled with escalating tensions in the Middle East and Ukraine, which have amplified gold's status as a safe haven asset. The convergence of these factors has kept investor interest in gold exceptionally high, signaling continued upward momentum in its price.

Gold's recent performance has defied expectations, reaching new all-time highs by surpassing the $2,365 mark, showcasing a robust bullish trend not seen since the surge in 2011. This rally, driven by anticipation of Federal Reserve rate cuts and gold's appeal as a hedge against inflation, continues despite mixed economic signals. Whether reacting to prospects of a strong economy or the anticipation of easing inflation, investors are increasingly turning to gold, indicating a widespread belief in its value retention and potential for growth amidst varying rate cut expectations for 2024.

The World Gold Council shares important data on global gold ETF flows.

Mike Maloney and Russ Gray delve into the world of economics, focusing on the inverted yield curve and its potential implications for the economy.

Zimbabwe is launching a new currency, the ZiG (Zimbabwe Gold), in an effort to stabilize its economy, backed by $185 million in gold and other reserves. This initiative represents the country's sixth attempt to establish a reliable currency, following the dramatic depreciation of its previous currency, which lost 80% of its value since the beginning of this year alone. After experimenting with gold coins and digital currency versions, the Zimbabwean central bank views the ZiG as an opportunity to create a "solid and stable" national currency, aiming to rectify the longstanding issues of currency devaluation and economic instability.

Hong Kong authorities made their largest gold smuggling bust, confiscating $10.7 million worth of gold cleverly disguised as machine parts destined for Japan. The 146 kilograms of gold were ingeniously molded into shapes resembling screws and cylinders, painted to look like parts of air compressors in an airplane's cargo. The discovery was made during a routine examination on March 27, leading to the arrest of a 31-year-old man connected to the smuggling operation. While the suspect has been released on bail, the case highlights the lengths smugglers will go to in circumventing customs laws, which could result in up to seven years of imprisonment and a $2 million fine for those convicted.

With escalating geopolitical tensions, including a more assertive Russia, instability in the Middle East, and China's military expansion, global defense spending hit a record $2.2 trillion last year. Despite this, experts argue that European Union nations and their allies need to significantly increase their military budgets to meet 21st-century security demands. While political leaders praise progress towards NATO's defense spending goal of 2% of GDP, security officials suggest that spending levels reminiscent of the Cold War era, possibly as high as 4% of GDP, are necessary to fulfill the alliance's strategic objectives.

The price of gold reached a new peak, marking a record high for the eighth straight session, driven by geopolitical tensions and the support from momentum-following funds, trading up 0.7% to $2,354.37 per ounce. This surge reflects the traders' strategy to buy on dips, buoyed by concerns over the Russia/Ukraine conflict and tensions in the Middle East. Despite shifting focus from lower rate cut expectations to concerns over persistent high inflation, gold continues to attract investors seeking a safe haven amidst the uncertainty.

Gold prices soared to a new record, reaching as high as $2,365.35 an ounce, in anticipation of the upcoming US inflation data. This surge, marking an 18% increase since mid-February, reflects investors' expectations that the Federal Reserve might ease interest rates based on the inflation trends. While economists predict a slight cooling off in March’s inflation, which could justify rate cuts, gold's appeal strengthens as lower interest rates make non-yielding assets like gold more attractive. This unexpected rally comes despite diminishing expectations for aggressive rate cuts by the Fed.

The Biden-Harris Administration is set to announce new initiatives aimed at canceling student debt for tens of millions of Americans. These latest plans, alongside previous efforts, aim to deliver relief to over 30 million individuals, marking a significant step in the Administration's commitment to addressing student debt.

In the first quarter of 2024, the precious metals market showed significant movements with gold hitting new record highs, silver rallying, and platinum and palladium experiencing declines. As we enter the second quarter, the trend appears to be on an upward trajectory, especially for gold and silver, which are leading the bullish momentum. The focus now shifts to the potential directions gold and silver prices could take for the remainder of the year, suggesting continued interest and speculation in these markets.

Jamie Dimon, CEO of JPMorgan Chase, has issued a cautionary note on the U.S. economic outlook, suggesting that inflation and interest rates may remain higher than currently anticipated by the markets. In his annual letter to shareholders, Dimon highlighted the impact of significant government deficit spending and past stimulus measures on the economy. He underscored the potential for increased expenditure due to transitions towards a greener economy, the restructuring of global supply chains, heightened military spending, and rising healthcare costs. These factors, according to Dimon, could contribute to persistently high inflation and interest rates, challenging the prevailing market expectations which have recently leaned towards anticipating rate cuts by the U.S. Federal Reserve.

Gary Shilling, a well-known financial analyst, has highlighted that while the U.S. economy has managed to stave off a recession thus far, the threat of an economic downturn remains. Shilling points to U.S. small businesses, traditionally sensitive to economic shifts due to their lower capitalization, as showing signs of strain by reducing employment and other activities. Despite these warning signals, a surprisingly robust labor market has played a crucial role in preventing a recession. The competition for workers during a labor shortage has led businesses to retain staff, thereby sustaining labor market strength. Shilling suggests that this resilience in the labor market has delayed, but not eliminated, the potential for a recession.

UBS analysts have revised their gold price forecasts upward, anticipating a surge to $2,500 per ounce by the end of 2024, following a significant rally that has already seen prices reach new highs. The 13% increase in gold prices this year is attributed to geopolitical tensions and inflation concerns, which are influencing the Federal Reserve's interest rate expectations. UBS predicts that gold ETF holdings will grow as the Fed begins to lower rates around mid-year, aligning with past trends where gold demand increases with ETF purchases during periods of rate adjustments. Consequently, UBS now expects gold to hit $2,300 per ounce in June before reaching $2,500 by year-end.

Gold prices reached a new record high above $2,350 an ounce but later pared gains, with investors' attention turning towards the upcoming U.S. inflation data set to be released on Wednesday. The anticipation revolves around the Federal Reserve's stance on interest rates, as higher rates generally have a negative impact on gold, which doesn’t yield interest. Despite the lack of a clear catalyst for gold's rally since mid-February, the precious metal has surged over 18%, partly driven by expectations that the Fed might soon reduce borrowing costs and by consistent demand from central banks, notably the People’s Bank of China, which added gold to its reserves for the 17th consecutive month in March.

Despite reaching new all-time highs amid strong U.S. economic data and ongoing geopolitical tensions, gold's future rally may not be guaranteed, according to veteran advisor Bob Parker of the International Capital Markets Association. Parker points out a "catch-up effect" as a significant driver behind the recent surge. This effect refers to gold's attempt to match its past underperformance relative to global equity markets. Additionally, Parker highlights the debated but acknowledged correlation between gold and Bitcoin as influencing gold's appeal. However, Parker also notes the obscure yet impactful role of central bank purchases, especially from Asia, as a key factor in gold's current standing, suggesting a mixed outlook for the metal's future.

Gold prices have surged to new highs, fueled largely by significant purchases from central banks. On the New York Mercantile Exchange, June futures rose 0.5% to $2,357 per troy ounce, reaching an all-time peak of $2,372.5. This uptick represents a 4.4% gain in the past week and nearly 11% over the past year. A significant factor behind this rally is the consistent increase in gold reserves by central banks, with China's central bank boosting its gold reserves for the 17th consecutive month in March.

Oil prices experienced a decline, with U.S. crude futures dropping as the market anticipates Iran's response to Israel following a missile attack on Iran's consulate in Damascus. West Texas Intermediate (WTI) for May delivery decreased by 60 cents, marking a 0.69% fall, settling at $86.31 a barrel, while June Brent contract dipped by 68 cents, or 0.71%, to $90.96 a barrel. This market movement comes amid warnings from a senior Iranian military advisor to Israel, hinting at possible retaliatory actions against Israeli embassies in response to the attack that resulted in the death of Iranian commander Mohammad Reza Zahedi, for which Tehran holds Israel responsible.