Precious metals news

Gold prices have found support at the 50-day EMA, suggesting a potential rebound after recent significant sell-offs. The market remains bullish in the long term, supported by an uptrend line and ongoing geopolitical risks, as well as central bank accumulation. While the $2,400 level presents resistance, breaking above it could lead to further gains towards $2,475. Investors are likely to view pullbacks as buying opportunities, indicating a gradual upward movement for gold.

Gold prices recovered slightly on Friday after a sharp decline the previous day, with investors awaiting key U.S. inflation data that could influence the Federal Reserve's interest rate decisions. Despite the modest gain, gold is down 1% for the week and 4.5% from its recent record high, pressured by strong U.S. economic growth data. While demand in China has weakened due to high prices and seasonal factors, India's gold market has been boosted by a reduction in import taxes. The precious metal remains up 15% for the year, with its price currently fluctuating between key moving averages.

The U.S. economy grew at an annualized rate of 2.8% in the second quarter, surpassing economists' expectations of 2% and improving from the first quarter's revised 1.4% growth. This stronger-than-anticipated performance, coupled with easing inflation, suggests a robust economic outlook for the period. However, economists like Oren Klachkin of Nationwide predict this may be the best quarter of the year, with future growth likely to cool as consumer spending and business investments slow. The data has prompted speculation on when the Federal Reserve might start cutting interest rates, with markets anticipating a possible rate cut by the end of September.

Elon Musk has warned that "America is going bankrupt" in response to a report highlighting the alarming proportion of U.S. income tax revenue being consumed by interest payments on the national debt. According to economist E.J. Antoni's analysis of the latest Monthly Treasury Statement, in June 2024, interest payments on Treasury debt securities amounted to 76% of the individual income tax revenue collected that month.

The U.S. stock market, gold prices, and the dollar have all been soaring simultaneously, defying traditional economic explanations. While factors such as AI advancements, geopolitical uncertainties, and monetary policy expectations have been suggested as reasons, none fully account for all three trends. The most plausible explanation appears to be the robust U.S. economy, which has consistently outperformed expectations, driven by strong consumer demand and government economic initiatives. This economic strength has fueled demand for U.S. assets across the board, leading to the unusual concurrent rise in stocks, gold, and the dollar.

The current economic landscape, including geopolitical tensions, central bank purchases, and the upcoming U.S. presidential election, are creating a bullish environment for gold, according to analysts at JP Morgan. As equity markets face a significant downturn, gold is being touted as a "massive buying opportunity." Analysts predict a potential "new super bull" run for gold, especially if Donald Trump wins the election, given his previous presidency's impact on gold prices. The current pullback in gold prices is seen as an opportunity for investors who missed the initial surge, with experts forecasting 2024 as the "Year of the Metals."

Zimbabwe's Finance Minister Mthuli Ncube has announced measures to boost demand for the country's new bullion-backed currency, ZiG (Zimbabwe Gold). These include requiring government departments to accept ZiG for goods and services, mandating certain taxes be paid exclusively in ZiG, and increasing circulation of ZiG notes without expanding money supply. The government aims to strengthen the local currency, which replaced the Zimbabwean dollar in April after it lost 80% of its value against the US dollar, fueling inflation. Ncube credits the ZiG for helping to curb inflation and is implementing these measures to further support its adoption and stability.

The U.S. dollar pared its losses on Thursday after data showed stronger-than-expected economic growth and slowing inflation in the second quarter. The GDP grew at an annualized rate of 2.8%, surpassing economists' forecasts of 2.0%. This positive economic data helped the dollar recover slightly against the yen and other currencies, though it remained down overall.

The U.S. economy showed unexpected resilience in the second quarter of 2024, with GDP growing at 2.8%, surpassing economists' expectations and accelerating from the first quarter's 1.4% growth. This robust performance comes despite high interest rates and persistent inflation, and amidst a heated political debate about the economy's health. While President Biden touts these figures as evidence of economic strength, nearly three in five Americans incorrectly believe the country is in a recession. The Federal Reserve is now considering when to start cutting interest rates as inflation shows signs of cooling towards their 2% target.

The U.S. stock market and economy are currently experiencing an unusual split, which could mean trouble is on the horizon... There's a significant gap between the Conference Board's Consumer Confidence Index (CCI) and the University of Michigan's Index of Consumer Sentiment (UMICS), which has historically preceded recessions. In the past, this has been a reliable recession indicator. Factors contributing to these differing perspectives include disparities in stock and home ownership, varying impacts of interest rates, and contrasting employment reports. Investors are advised to recognize the validity of both perspectives to navigate these economic uncertainties effectively.

While the United States added a record amount of new Solar PV capacity last year, it pales in comparison to the Chinese Solar Behemoth.  The numbers were literally off the charts, which is why there was a huge increase in global industrial silver consumption in 2023...

The upcoming U.S. presidential election has significant global economic implications.. but what does it mean for gold? The World Gold Council offers analysis based on long-term historical precedent in their latest report. In it, the WGC analysis suggests that gold bar and coin demand tends to increase during Democratic presidencies, party affiliation doesn't consistently impact gold prices during elections. Instead, the economic policies of the elected president, both domestic and foreign, are more influential on financial assets, including gold. The current polarized political climate and global uncertainties underscore the importance of robust portfolio hedges, a role that gold effectively fulfills.

Nearly 40% of American adults are frequently worried about paying their bills, according to a new CNN poll. Concerns about the rising cost of essentials like groceries, clothing, and insurance, are rising. At the same time, household debt reached $17.69 trillion in the first quarter of 2024, up by $184 billion from the previous quarter. The level of financial anxiety surpasses that of the Great Recession era, reflecting the significant economic pressures many Americans are currently facing.

A Prudential Financial study reveals that Generation X, currently aged 44-59, is facing significant financial challenges as they approach retirement. This generation, caught between the decline of pension plans and uncertainties about Social Security's future, is less financially secure than their predecessors. Compared to older generations, a larger proportion of Gen Xers expect to need financial and housing support from their families in retirement, potentially becoming "silver squatters." Despite these concerns, many have not yet discussed their potential need for support with their families, highlighting a critical need for financial planning and open communication about retirement expectations.

Traditional recession indicators in the U.S. are proving unreliable in the current economic climate, largely due to the unique disruptions caused by the pandemic. Despite signals such as declines in temporary employment and an inverted yield curve, which historically predicted recessions, no significant downturn has occurred. The pandemic has fundamentally altered labor market dynamics, with businesses less reliant on temporary workers. Additionally, although GDP contracted for two consecutive quarters in 2022, the broader economy has remained resilient. This has led to skepticism about the current relevance of these recession indicators.

Gold prices increased on Wednesday due to a weakening dollar and anticipation of upcoming U.S. economic data that could influence the Federal Reserve's interest rate decisions. Investors are closely watching GDP and personal consumption expenditure reports for clues on potential rate cuts, with markets currently expecting a rate cut in September. Additional factors supporting gold prices include lower U.S. stock prices, higher crude oil prices, and India's recent reduction of import duties on gold and silver. Gold's appeal is further bolstered by expectations of earlier Fed rate cuts and ongoing political developments in the U.S.

African nations are increasingly turning to gold as a means to protect their economies against currency losses and inflation, following the lead of countries like China and India. Countries such as South Sudan, Zimbabwe, Nigeria, Uganda, and Tanzania are either implementing or considering policies to increase their gold reserves. This trend is driven by geopolitical tensions, recent economic disruptions, and a desire to reduce dependency on the US dollar. While this strategy offers potential benefits in terms of diversification and stability, experts note that it's not a complete substitute for US dollar reserves but rather a complementary approach to managing economic risks.

The Peter G. Peterson Foundation asked seven think tanks to come up with plans to address the national debt. All participating think tanks agree on the need to rein in borrowing and propose a combination of revenue increases and spending cuts to reduce the debt-to-GDP ratio by at least one-third by 2054. The report identifies Social Security, healthcare costs, and the 2017 tax cuts as key areas for potential bipartisan reform, suggesting that political will, rather than lack of solutions, is the main obstacle to addressing the debt crisis.

The U.S. economy is experiencing a controlled slowdown, with reduced hiring, consumer spending, and manufacturing activity, alongside a stagnant housing market. Despite these challenges, the economy appears to be achieving a "soft landing," with inflation cooling without significant unemployment increases and continued, albeit slower, economic growth. This controlled deceleration is viewed positively, with economists now seeing a lower risk of recession compared to a year ago. The upcoming economic figures are expected to show the slowest consecutive quarters of growth since 2022, reflecting this managed economic cooling.

Gold prices have reached record highs in 2024, defying typical behavior during U.S. presidential election years. According to the World Gold Council, while elections historically have not directly impacted gold performance, the current political climate of increased polarization and elevated geopolitical risks may be encouraging investors to seek gold as a hedge against portfolio risk. This unique environment has contributed to gold's strong performance, with prices up 16% year-to-date and reaching an all-time intraday high of $2,488.40 on July 17.