Precious metals news

The British pound strengthened against the dollar and euro on Friday, buoyed by better-than-expected UK retail sales data for August. This positive economic indicator, combined with steady inflation figures and the Bank of England's cautious stance on interest rates, has contributed to sterling's upward trend. The currency briefly touched its highest level against the dollar since March 2022, while also gaining ground against the euro.

As the Federal Reserve begins its first interest rate cuts since 2020, Chairman Jay Powell must navigate a delicate economic situation. While Powell maintains that the Fed's actions are timely, critics suggest the central bank may be late in responding to economic signals. The success of Powell's strategy hinges on his ability to balance rate cuts with evolving economic conditions, particularly in the labor market, to avoid potential risks to achieving a soft landing for the US economy.

Commodities have gained for the second week, buoyed by the Federal Reserve's rate cuts that reduce funding costs. Most sectors are up, notably soft commodities with sugar seeing historic gains. The energy sector rebounds from an early September decline. Gold's price surge continues amid the rate cuts, reaching new records, while silver outpaces gold with even higher returns due to its industrial and precious metal status. This trend reflects broader economic imbalances and a shift towards safe-haven assets.

Incrementum, a Liechtenstein-based asset management firm, has released its latest research report focusing on the beer to gold ratio at Oktoberfest. This unique metric compares the purchasing power of gold to the price of beer at the world-famous festival in Munich.The 2024 Oktoberfest in Munich will see beer prices ranging from €13.60 to €15.30 per liter, marking a 3.87% increase from 2023. Some large tents are now charging over €15 for the first time. While beer prices continue to rise, they remain a popular topic of discussion among festival-goers and economists alike.

India's gold imports hit a record high in August following a significant cut in import duties, driving global gold prices to new heights. The tariff reduction at the end of July sparked a surge in demand for gold jewelry and bars in India, the world's second-largest gold buyer. This unexpected boost in Indian consumption has contributed to the overall rally in gold prices, which have risen by 25% since the beginning of the year.

Gold prices soared to an unprecedented high of $2,609.62 per ounce on Friday, driven by the Federal Reserve's recent interest rate cut and projections for further reductions. This rally reflects growing investor interest in gold as a safe-haven asset amid global economic uncertainties, geopolitical tensions, and a weakening U.S. dollar. The precious metal's appeal has been further enhanced by lower interest rates, which reduce the opportunity cost of holding non-yielding assets like gold.

Gold miners are experiencing a renaissance as gold prices hit record highs, surpassing $2,600 per ounce. This boom, driven by emerging market demand and a pessimistic U.S. economic outlook, presents an opportunity for mining companies to boost revenues, invest in aging mines, and pursue strategic acquisitions. However, to win back skeptical investors, industry leaders stress the importance of demonstrating fiscal responsibility, offering attractive dividends, and making prudent expansion decisions.

The latest US jobless claims data shows a significant drop to 219,000 for the week ending September 14, the lowest level since May. This decrease, which was below economists' expectations, suggests that the labor market remains robust despite a slowdown in hiring. The four-week average of claims also fell, indicating a consistent trend of labor market strength.

BofA Global Research has uniquely increased its forecast for Federal Reserve rate cuts in 2024, predicting a 75-basis point reduction in Q4 following the Fed's larger-than-expected 50 bps cut. This adjustment surpasses the Fed's own projection of a half-percentage point decrease by year-end. BofA anticipates further cuts in 2025, potentially lowering the terminal rate to 2.75%-3.00% from the current 4.75%-5.00%.

Oil prices experienced a modest increase following the Federal Reserve's significant interest rate reduction. Brent crude futures climbed to $74.55 per barrel, recovering from recent lows. However, the market's response has been cautious, as the rate cut raises questions about the strength of the U.S. economy. Analysts note that while lower interest rates generally support economic growth and oil demand, the Fed's decision has also sparked concerns about potential economic challenges ahead.

The precious metals market saw significant gains on Thursday, with gold hitting record levels after the Federal Reserve announced the start of its interest rate easing cycle. The Fed's decision to cut rates by half a percentage point, coupled with projections of additional cuts through 2026, has bolstered gold's attractiveness as an investment, pushing prices above $2,580 per ounce.

Join us for a short update from the Limitless event as Russ Gray shares his incredible story of how he discovered a rare copy of The Enemy Within

Is the Silver Price heading to maybe $35 or $40?  That's one forecast from a silver analyst who has been criticized for being too "Bearish" in the past.  In this update, I show how the Rise or Decline in the Fed Funds Rate has impacted the silver price...

The Federal Reserve's upcoming interest rate decision has bond investors on edge, with the market divided over the size of the expected cut. Treasuries have seen a five-month rally, driving yields to two-year lows. However, this optimism could lead to significant losses if the Fed chooses a smaller 25-basis-point reduction instead of the larger cut some are hoping for. The decision is highly anticipated, as it will set the tone for the Fed's rate-cutting cycle in an uncertain economic environment.

Investors at a regional forum in Singapore downplayed the significance of the Federal Reserve's upcoming interest rate decision, focusing instead on long-term economic trends and concerns about China's economic slowdown. While the Fed is expected to cut rates, participants like Ray Dalio and Jody Jonsson emphasized the importance of maintaining a broader perspective on economic factors and investment strategies.

In this thought-provoking discussion from the Limitless Expo in Dallas, Mike Maloney and Russell Gray dive deep into the cycles of economic change

China's steel and iron ore markets are experiencing a paradoxical situation. Despite weak steel production and demand, particularly in the construction sector, iron ore imports have remained strong. This disconnect is primarily driven by price dynamics, with steelmakers taking advantage of lower iron ore prices to restock inventories, even as steel prices and production decline. The situation highlights the complex interplay between raw material costs, finished product demand, and market expectations in China's steel industry.

China's dominance in rare earth elements production and processing remains strong despite efforts by Western nations to reduce reliance. While China's market share has declined slightly in recent years, it still controls about 67% of global production and 90% of processing. Western countries are investing in domestic rare earth projects and supply chains, but China's established infrastructure and technological expertise make it challenging to significantly diminish its dominance in the near term.

Gold prices have recently hit record highs, with experts predicting further increases to potentially reach $3,000 per ounce in the near future. This surge is attributed to various factors, including global economic uncertainties, anticipated Federal Reserve interest rate cuts, and strong demand from investors seeking a safe haven. The article suggests that gold's recent breakout from long-term resistance levels indicates a bullish trend, with pullbacks viewed as buying opportunities.

Looking at several high-productive areas in the top U.S. shale oil field, we will see signs of peak oil production.  But, as many companies are conserving how quickly they produce their remaining reserves, ExxonMobil's Permian production continues to surge higher...