Precious metals news

The cryptocurrency landscape is undergoing major shifts as Bitcoin's price fluctuates dramatically, moving from $90K to $101K within a week. At the state level, a remarkable push for Bitcoin adoption is underway, with eight states - Texas, Oklahoma, Florida, Ohio, Alabama, New Hampshire, Pennsylvania, and North Dakota - advancing legislation to establish strategic Bitcoin reserves. This movement coincides with broader national initiatives, including Trump's proposed federal Bitcoin stockpile plan, which has gained substantial industry support. Adding to the dynamics, Senator Cynthia Lummis has launched an investigation into alleged document tampering at the FDIC regarding its digital asset activities, particularly concerning Signature Bank and Silvergate Bank. The industry's optimism is culminating in a lavish Crypto Ball in Washington D.C., sponsored by major players like Coinbase and featuring exclusive access to Trump, highlighting the growing intersection of cryptocurrency and politics.

Wall Street banks are launching an ambitious campaign to reshape capital regulations, emboldened by Trump's pending return to the White House and their recent victory in halving proposed Basel capital requirements. Leading institutions like JPMorgan Chase, Bank of America, and Goldman Sachs are targeting multiple regulatory reforms, including reducing the capital surcharge for global banks and restructuring the Federal Reserve's stress testing framework. Banking executives argue that the current nearly $1 trillion combined capital requirement is excessive, pointing to their stability during the COVID-19 pandemic and their role in stabilizing regional banks during the 2023 crisis as evidence of their financial strength. While banks achieved some regulatory relief during Trump's first term, they view the upcoming administration change, including an earlier-than-expected appointment of a new Federal Reserve regulatory chief, as a unique opportunity for more comprehensive reform.

Key developments in the basic materials sector show varying performance across companies and regions. Orla Mining reported disappointing Q4 gold production of 26,500 ounces, falling 15% below expectations due to 4,100 ounces remaining in refined inventory. Meanwhile, Antofagasta's 2025 capital expenditure guidance of $3.9 billion exceeded analyst expectations by 11%. Rio Tinto delivered strong copper production, particularly at Escondida and Oyu Tolgoi mines, while reporting steady iron-ore output despite an increasing mix of lower-quality SP10 ore. The company notes global economic resilience with moderating inflation, though challenges persist from geopolitical tensions, labor shortages, and China's property market crisis, even as the U.S. economy maintains stable performance.

The incoming Trump administration is developing comprehensive sanctions targeting the oil sectors of Iran, Russia, and Venezuela, focusing on three persistent diplomatic challenges facing the United States. The measures aim to pressure Russia to end its war in Ukraine, address concerns about Iran's nuclear program, and respond to Venezuela's democratic backsliding. However, sanctioning these major oil producers presents significant challenges for global markets, particularly following recent oil price increases triggered by Biden's sanctions on Russia. Meanwhile, Russia's financial strain is evident, with its National Wellbeing Fund's liquid assets dropping 24% to 3.8 trillion rubles in 2024, largely due to war-related expenditures. The news coincides with BP's announcement of significant job cuts and restructuring efforts under CEO Murray Auchincloss.

Gold futures surged 1.25% to $2,746.40 on Thursday, marking their third consecutive daily gain and the third-highest close in history. The precious metal has rallied in seven of the past eight sessions, climbing 4.46% year-to-date, supported by shifting Federal Reserve policy expectations and standing just 1.51% below its all-time high of $2,788.50.

December's retail sales data painted a picture of resilient U.S. consumer spending, with a 0.4% overall increase and a notable 0.7% jump in core retail sales. The strength was broad-based, with significant gains in auto dealerships (0.7%), furniture stores (2.3%), and sporting goods retailers (2.6%). This robust performance, combined with December's strong employment figures showing a 4.1% unemployment rate, has prompted economists to revise their Q4 GDP growth estimates upward to nearly match Q3's 3.1% pace. The data suggests that wage growth continues to drive consumer spending, potentially complicating the Federal Reserve's considerations for interest rate cuts in 2024.

In this eye-opening discussion, Alan Hibbard from GoldSilver.com shares why 2025 could be a game-changing year for precious metals

Federal Reserve officials are signaling a more conservative approach to rate cuts in 2025 compared to 2024's full percentage point reduction. Their cautious stance is influenced by persistent above-target inflation, robust labor market conditions, and uncertainty surrounding the economic impact of Trump's second-term policies, including potential tax cuts and tariffs. The divide between hawks and doves reflects varying concerns about inflation risks versus labor market stability.

Oil prices rallied significantly with WTI crude reaching $80.04 and Brent hitting $82.03 per barrel, driven by winter demand and concerns over U.S. sanctions on Russia. The market is responding to multiple factors: eight consecutive weeks of U.S. crude inventory drawdowns, speculation about the incoming Trump administration's stance on Iran, and the International Energy Agency's forecast of 1.05 million barrels per day demand growth in 2025. Meanwhile, Constellation Energy's acquisition of Calpine for $16.4 billion is reshaping the power sector landscape.

Oil prices declined on Thursday, with Brent crude falling 1.29% to $80.97 and WTI dropping 1.87% to $78.54, primarily due to expectations of reduced Houthi attacks in the Red Sea following a Gaza ceasefire agreement. The market also responded to strong U.S. retail data and Fed Governor Waller's comments suggesting potential earlier rate cuts, while anticipating policy shifts under the incoming Trump administration and monitoring OPEC+'s cautious stance on production increases.

Gold has climbed to its highest level in over a month, trading at $2,719.49 per ounce, as multiple economic indicators point toward potential monetary policy easing. This rally was fueled by a confluence of factors: weaker-than-expected U.S. economic data, including higher jobless claims of 217,000 versus the forecast 210,000, and December's core inflation increase of just 0.2% after four consecutive months of 0.3% gains. These developments have significantly influenced market expectations, with traders now anticipating 37 basis points of Federal Reserve rate cuts by year-end, up from 31 basis points before the inflation data. The precious metal's appeal is further enhanced by declining Treasury yields and ongoing geopolitical tensions, particularly in Gaza where recent airstrikes have resulted in significant casualties despite ceasefire announcements, reinforcing gold's traditional role as a safe-haven asset and hedge against inflation.

The U.S. dollar weakened Thursday despite mixed economic data, with traders focusing on the upcoming Trump inauguration and potential policy shifts. While retail sales showed modest growth and unemployment claims remained at healthy levels, markets are particularly attentive to Treasury nominee Scott Bessent's upcoming hearing and the possibility of new tariffs. The dollar index fell 0.09% to 108.92, while experiencing notable declines against the yen and maintaining pressure on China's yuan.

Gold has climbed to its highest level in a month, trading above $2,700 an ounce, driven by a significant shift in market expectations following surprisingly moderate U.S. core inflation data. The consumer price index, excluding food and energy, rose just 0.2% after four consecutive months of 0.3% increases, suggesting the Fed may have more flexibility to cut rates sooner than previously anticipated. This development has caused a notable market reaction, with Treasury yields and the dollar declining, enhancing gold's appeal as a non-yielding asset. Swap traders have adjusted their expectations, now fully pricing in a rate cut by July - a marked change from recent predictions of September or October following strong employment data. While Fed officials express optimism about declining inflation pressures, they maintain a cautious stance about the complete victory over price stability, echoing the conditions that helped drive gold to record highs last year.

A new analysis reveals U.S. stocks have reached their most expensive level in history when measured against workers' purchasing power. According to Leuthold Group's research, manufacturing workers must now work more than 200 hours to afford one unit of the S&P 500, dramatically exceeding the historical median of 33 hours in data going back to 1947. This extreme valuation coincides with other concerning metrics - the S&P 500's forward P/E ratio stands at 21.4 times expected 2025 earnings, and its price-to-sales ratio is at levels not seen since the aftermath of the dot-com bubble. While the market has shown resilience, rising over 50% from its October 2022 lows, these valuation metrics suggest unprecedented disconnection between stock market values and real-world wages, even as recent positive inflation data continues to drive market gains.

December 2024 saw U.S. retail sales increase by 0.4%, reflecting strong consumer spending across multiple sectors, particularly in automobiles (0.7%), furniture (2.3%), and sporting goods (2.6%). This growth, though moderating from November's 0.8%, occurred against a backdrop of positive economic indicators, including a low 4.1% unemployment rate and rising wages. The retail landscape reveals a complex picture where overall sales have risen 3.9% year-over-year, with goods inflation at just 0.3%. However, the market shows a clear bifurcation: wealthy consumers, benefiting from appreciating assets, continue robust spending and home improvements, while lower-income households remain constrained by elevated prices. This dynamic, combined with core inflation holding at 2.7% and expectations of further Federal Reserve rate cuts, suggests a nuanced economic environment where consumer resilience varies significantly by income level.

As both gold and bitcoin reach record highs in 2024, a growing number of investment experts suggest including both assets in portfolios for enhanced diversification. While sharing some characteristics as alternative investments, their distinct behaviors and risk profiles make them complementary rather than competitive assets. BlackRock recommends up to 2% bitcoin allocation in traditional portfolios, while investment managers suggest gold allocations around 10%, highlighting bitcoin's higher risk-reward profile compared to gold's established role as a store of value.

Mali's government has seized three tons of gold worth $245 million from Barrick Gold's Loulo-Gounkoto mine amid an escalating ownership dispute. The seizure, following the arrest of company executives and a warrant for CEO Mark Bristow, has forced Barrick to suspend operations at the mine, which produces 14% of its global output. The conflict stems from Mali's new mining codes, with the military government demanding an increased stake beyond its current 20% ownership and claiming $500 million in back taxes.

With the world heading Full-Speed ahead toward a new High-Tech world of AI, Data Centers, and Bitcoin mining, the supposed "Energy Savior," Small Modular Reactor technology has hit a BRICK WALL.  This is undoubtedly Bad News because there isn't a Plan B for the coming Fossil Fuel Energy Cliff...

Goldman Sachs doubled its fourth-quarter profits to $4.1 billion, driven by record equity trading performance and strong investment banking results. The bank's shares rose 2% as it exceeded most targets, with revenue reaching $13.87 billion and return on equity jumping to 14.6%. The successful quarter caps a year that saw Goldman's stock rise 48%, making it the best-performing major U.S. bank of 2024.

JPMorgan Chase achieved unprecedented success in 2024, setting a new American banking record with $58 billion in annual profits and a remarkable 50% jump in fourth-quarter earnings to $14 billion. The stellar performance was primarily driven by a revival in dealmaking and strong trading revenues, which rose 21% amid election-related market volatility. While the bank's consumer unit faced challenges with a 6% decline and increased credit card charge-offs, JPMorgan raised its 2025 net interest income guidance to $90 billion. The bank's success was part of a broader trend, with Goldman Sachs and Wells Fargo also reporting significant profit increases. Meanwhile, CEO Jamie Dimon addressed succession plans, indicating he expects to remain CEO for "a few more years" before transitioning to chairman, potentially serving the bank for "4-5 years or more."