Precious metals news

Morgan Stanley forecasts gold prices to stabilize around $2,700/oz in Q1 2025, following a recent rally to record highs. While strong physical demand and rate cut expectations drove prices up, signs of weakening demand and macroeconomic uncertainties may limit further gains. Central bank purchases and ETF flows remain supportive, but slowing physical demand and increased supply could cap gold's upside potential.

President-elect Donald Trump has announced plans to impose a 10% tariff on Chinese goods, citing China's alleged failure to curb drug trafficking into the US. This move could potentially reignite trade tensions between the world's two largest economies. China has responded by defending its counter-narcotics efforts and calling for cooperation, while experts speculate on how President Xi Jinping will navigate this early challenge from the incoming Trump administration.

Mexican President Claudia Sheinbaum announced plans to send a letter to U.S. President-elect Donald Trump, urging for dialogue in response to his proposed 25% tariffs on Mexico and Canada. She warned that such tariffs would lead to inflation and job losses in both countries, potentially violating the USMCA agreement. Sheinbaum emphasized Mexico's efforts in combating drug trafficking and reducing migrant arrivals, while highlighting the need for cooperation on shared issues like illegal arms trade from the U.S. The Mexican peso fell by 1.3% following the announcement.

Oil prices rebounded slightly after a sharp decline, as traders grappled with President-elect Trump's tariff threats and potential progress on an Israel-Hezbollah ceasefire. Brent crude edged above $73 per barrel, recovering from earlier losses triggered by a strengthening dollar. The market remains cautious, balancing geopolitical risks against expectations of oversupply in the coming year.

With Trump, Musk & Crypto leading most of the news on social media, it seems Bitcoin is still a primary focus.  Interestingly, investors watched Bitcoin fall nearly 10% from its highs just a few days ago.  So, what's next for the gold and silver prices after the Thanksgiving holidays...

The appointment of Scott Bessent as Treasury Secretary is being welcomed by investors who anticipate he will moderate some of Trump's more extreme economic measures. This sentiment has fueled gains in US Treasuries and stocks, while the dollar has weakened. Bessent is expected to favor a cautious implementation of trade restrictions and focus on fiscal responsibility, which has provided a sense of relief to the financial markets.

Warren Buffett, the iconic investor and chairman of Berkshire Hathaway, has announced plans to donate 99.5% of his $149.7 billion fortune to charity upon his death. This wealth will be managed by a trust overseen by his children, Susie, Howard, and Peter Buffett, with designated successors if needed. Buffett has already donated over $58 billion since 2006, including another $1.14 billion in Berkshire stock to family foundations. His children will have a decade after his passing to distribute the remaining wealth for philanthropic purposes, continuing Buffett's legacy of generosity.

The post-election rally in stock markets, driven by expectations of pro-business policies under President-elect Donald Trump, is likely to elevate the Federal Reserve's favored inflation measure. This increase in stock prices affects the PCE price index by raising costs in portfolio management services, a critical component influencing Fed policy. As a result, the Fed may need to maintain a hawkish stance on interest rates unless there is a significant market correction.

The United States and Europe are set to diverge significantly in their monetary policies next year. The Federal Reserve plans to reduce interest rates less aggressively than the European Central Bank (ECB) due to higher growth and inflation projections in the U.S. Meanwhile, the ECB is expected to respond more forcefully to Europe's sluggish growth and low inflation. Donald Trump's proposed tax cuts and tariffs are anticipated to keep U.S. inflation above 2%, while Eurozone inflation may fall below the ECB's target. This divergence highlights concerns about the Eurozone's economic vulnerability, especially in light of potential trade tensions with the U.S.

The price of gold fell 1% on Monday as investors took profits after a five-session rally, reaching a three-week high. The decline was further influenced by the appointment of Scott Bessent as the new U.S. Treasury Secretary, which eased market concerns about trade wars, reducing the demand for gold as a safe-haven asset. Additionally, market participants are closely watching the upcoming Federal Reserve's November FOMC meeting minutes, GDP data, and core PCE figures, with a 56% chance of a 25 basis point rate cut expected in December.

Gold prices fell as traders reacted to Donald Trump's nomination of Scott Bessent as Treasury Secretary and anticipated the Federal Reserve's upcoming interest rate decision. Despite a weaker US dollar, which typically supports gold, bullion dropped nearly 2% after a significant rally last week driven by geopolitical tensions. The market views Bessent's nomination as a stabilizing factor for the economy, potentially reducing gold's appeal as an inflation hedge. Analysts suggest that profit-taking and Bessent's perceived moderate stance on trade may have contributed to the decline.

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A massive discovery of 330 tons of gold in China's Hunan province could now reshape the metals market...

Goldman Sachs expert Samantha Dart attributes the surge in gold prices to central bank purchases, forecasting a rise to $3,000 per ounce by late 2025. Dart points to central bank acquisitions as the primary driver behind gold's price increase highlighting the significant impact of institutional buying on the precious metals market.

Warren Buffett's Berkshire Hathaway has amassed a record $325 billion cash pile, sparking speculation about his market outlook. While some interpret this as a bearish signal, experts argue it's a normalized cash-to-assets ratio for Berkshire. Buffett's recent stock sales, including reducing positions in Apple and Bank of America, have contributed to this cash accumulation. The lack of attractive investment opportunities at current valuations and potential preparation for leadership transition may explain this strategy, rather than solely anticipating a market downturn

Recent economic data and proposed policies from the incoming Trump administration have prompted the Federal Reserve to adopt a more conservative stance on interest rate cuts. This change in outlook could lead to fewer reductions in 2025 than previously anticipated, potentially affecting mortgage rates, auto loans, and small business financing. The Fed now emphasizes a measured approach to rate decisions, citing the economy's current resilience.

As the Russia-Ukraine conflict escalates, gold and oil prices surge while the euro weakens. Gold rose 5.4% this week to $2,688 an ounce, and Brent crude gained 4.5% to $74.29 a barrel. The U.S. dollar reached a two-year high as poor economic data and rising European gas prices pressured the euro. Tensions heightened after Russia fired a hypersonic missile into Ukraine, responding to Western weapons support for Kyiv.

The British pound tumbled to its lowest level against the dollar since May, following weak economic data. November's business output shrank for the first time in over a year, while October's retail sales fell more than expected. This economic weakness may force the Bank of England to consider more aggressive rate cuts than previously anticipated.

Chicago Fed President Austan Goolsbee supports further interest rate cuts but suggests a slower pace may be appropriate. The Fed faces a debate on the speed and extent of rate reductions, with some officials concerned about stalled inflation progress and others worried about labor market cooling. Uncertainty surrounding President-elect Trump's policies adds complexity to the decision-making process. The upcoming December Fed meeting will be crucial in determining the next steps for monetary policy.

China has unearthed a massive gold deposit worth $83 billion in Hunan province. Geologists discovered over 40 gold veins containing 300 tonnes of gold within 2,000 meters depth at the Wangu gold field. This find could significantly boost China's gold production, which currently accounts for 10% of global output. The Hunan Academy of Geology predicts potential reserves exceeding 1,000 tonnes at depths beyond 3,000 meters.