Precious metals news

Rising inflation has pushed more teenagers into the workforce to support their families financially. Many teens work various jobs to pay for personal expenses, save for college, and help her family with groceries and pocket money for her siblings. This trend reflects a broader pattern where teens are increasingly working to alleviate the financial strain on their parents, as consumer prices have surged over 20% in the past three years.

Gold prices remained steady following President Joe Biden's withdrawal from the 2024 presidential race. While gold initially gained from increased safe-haven demand, investors have mixed views on what a potential Trump victory would ultimately mean for the precious metal. Factors such as trade policies, US-China relations, and monetary policy expectations continue to influence gold prices, with the metal recently reaching record highs due to anticipation of Federal Reserve interest rate cuts

Despite Donald Trump's rhetoric favoring a weaker dollar, major banks predict that a second Trump presidency would likely strengthen the US currency. Analysts from Deutsche Bank, Morgan Stanley, and Barclays argue that Trump's proposed policies, particularly tariffs and trade restrictions, would have a more significant impact on boosting the dollar than any efforts to weaken it. These banks suggest that the long-term economic factors and potential global market reactions to Trump's policies would ultimately result in a stronger dollar, regardless of his stated preference for a weaker currency.

After the BIG moves UP & DOWN in the broader markets and gold last week, what's next?  With gold and silver being oversold on the short-term chart, a bunch higher is likely on Monday-Tuesday.  Also, there was a significant change in the Gold COT Report that you will find interesting...

Morgan Stanley predicts that gold prices could exceed $2,600 per ounce by the fourth quarter of 2024, driven by a significant increase in central bank purchases and strong retail demand, particularly from China. The price of gold has already risen 50% from its 2022 lows and 25% since February, with continued inflows into gold ETFs suggesting robust investor interest. While the market faces volatility due to potential U.S. recession fears, the strategists believe that financial flows will support further price increases, especially as the Federal Reserve is expected to cut interest rates.

Bank of America strategists, led by Michael Hartnett, are advising investors to adopt a bullish stance on bonds, gold, and undervalued stocks in anticipation of a Federal Reserve interest rate cut, a potential victory for Donald Trump in the upcoming election, and a soft landing for the U.S. economy. They suggest that proposed tariffs could be deflationary, and the bond market is already pricing in rate cuts amid concerns about inflation and a weakening labor market. Recent data shows significant inflows into gold and bonds, while the S&P 500 and small-cap stocks have also seen gains this year, indicating a positive sentiment in the market.

The silver market experienced significant volatility and a sharp decline this week, approaching a critical support level at $28.50. This area, previously a strong resistance point, may trigger a bounce. However, a break below $28 could lead to further drops. Silver's price is influenced by factors such as the US dollar, interest rates, and overall risk appetite. The market appears to be at a crucial juncture, with potential for either a rebound towards $30 or a continued decline to $26, depending on how it responds to the current support level.

A widespread IT outage, potentially the largest in history, disrupted global businesses on Friday, affecting financial services, healthcare, broadcasting, and air travel. The issue stemmed from a defect in CrowdStrike's latest update for Windows systems, which the company is actively addressing. While not a cyberattack, the outage coincided with separate issues in Microsoft's cloud services, causing significant disruptions and impacting CrowdStrike's stock price.

A widespread technology outage caused by a malfunction in a routine software update from cybersecurity firm CrowdStrike disrupted airlines, banks, hospitals, and emergency services globally. Thousands of Microsoft users were knocked offline, stranding airport travelers, delaying hospital appointments, and interrupting live news broadcasts. Major airlines such as Delta, United, and American Airlines grounded all flights, and 911 phone lines in states like Alaska and Ohio were down. CrowdStrike confirmed it was not a cyberattack but a software glitch, and a fix has been sent to customers. Mac and Linux users were unaffected.

Gold prices have fallen to near $2,400, extending a three-day losing streak after hitting all-time highs above $2,480. This decline is attributed to profit-taking, a recovery in the US Dollar, and rising bond yields. Political uncertainty in the US, with speculation about President Biden possibly not running for re-election and an assassination attempt on Donald Trump, has boosted the US Dollar's appeal. Market expectations for the Federal Reserve to reduce interest rates in September remain strong, influenced by recent inflation data and cooling labor market conditions. The US Dollar Index has rebounded to near 104.30, further pressuring gold prices.

The Great Debate continues as to why gold miners are underperforming the gold price, especially when compared to the copper mining industry. So, what may be the reasons for gold miner underperformance that many investors fail to realize...

In today’s GoldSilver update Alan Hibbard sits down with legendary commodities investor and speculator Rick Rule.

India's gold market in June 2024 showed a mixed performance, with investment demand and central bank purchases offsetting weak jewelry sales. Despite a slight decline in June, gold prices remained high, with year-to-date gains of 16%. Gold ETFs continued to see strong inflows, with assets under management reaching INR344bn, a 54% year-over-year increase. The Reserve Bank of India made its largest monthly gold purchase in nearly two years. However, jewelry demand remained subdued, and there was a significant widening of discounts between domestic and international gold prices. Looking ahead, jewelry demand is expected to pick up during the festival season starting in August, while interest in bars and coins is anticipated to continue.

China's gold market in June 2024 showed mixed signals, with wholesale demand remaining weak while ETF inflows continued to strengthen. Gold withdrawals from the Shanghai Gold Exchange increased slightly from May but were significantly lower year-over-year, indicating persistent weakness in overall demand. However, Chinese gold ETFs saw their seventh consecutive monthly inflow, reaching record-high assets under management. The People's Bank of China reported no changes in gold reserves for the second month in a row. Despite a slight decline in gold prices in June, both RMB and USD-denominated gold prices showed substantial gains for the first half of 2024. Looking ahead, while high gold prices may pressure demand, economic uncertainties and low consumer confidence could support investment in gold bars and coins.

Gold's recent surge to record highs has puzzled market observers, as the traditional explanations for its rise - geopolitical tensions and expectations of interest rate cuts - don't fully account for the timing or magnitude of the increase. Since early March, gold has risen 14%, setting new records despite no significant changes in global tensions or clear signals about rate cuts from the Federal Reserve. Experts offer various theories for this sudden spike, ranging from central bank diversification strategies and algorithmic trading to persistent inflation concerns and currency weaknesses. The lack of a clear consensus highlights the complex interplay of factors influencing gold prices and underscores the difficulty in pinpointing a single cause for the precious metal's current rally.

Despite a pause in gold purchases in May and June, China is expected to continue its long-term strategy of accumulating gold reserves. This ongoing interest is driven by several factors: China's gold holdings remain low relative to its economic status, geopolitical tensions persist, and there's a desire to diversify away from U.S. dollar-denominated assets. While recent buying has shown some price sensitivity, experts and insiders believe that China's fundamental need to increase its gold reserves, both in absolute terms and as a share of total reserves, will sustain the country's gold demand. The strategy is seen as part of China's broader effort to align its reserves with its position as the world's second-largest economy, although the pace of purchases may fluctuate based on market conditions and geopolitical developments.

Gold prices are maintaining their strength near record highs, driven by increasing expectations of earlier interest rate cuts by the U.S. Federal Reserve. This sentiment has led to a weaker dollar and subdued Treasury yields, further boosting gold's appeal. The precious metal's upward momentum is supported by recent dovish comments from Fed officials and signs of a cooling U.S. labor market. Analysts suggest that if these trends continue, particularly with more dovish Fed remarks and further indications of a softening job market, gold could potentially reach new all-time highs. The current market conditions are creating a favorable environment for gold, traditionally seen as a hedge against economic uncertainty and inflation.

Goldman Sachs reports that global hedge funds have been significantly reducing their exposure to U.S. stocks, particularly in the tech sector, over the past five trading days. This sell-off, the largest since November 2022 and approaching a five-year record, coincides with a broader market pullback in megacap tech-related stocks. The de-risking trend has been most pronounced in information technology, followed by industrial, healthcare, consumer discretionary, and communications services sectors. This shift in hedge fund positioning reflects growing caution in the market, especially towards high-growth tech stocks that have led much of the market's gains in recent years.

Major central banks are cautiously beginning to cut interest rates after a period of aggressive hikes to combat inflation. While the European Central Bank has paused after an initial cut, and the U.S. Federal Reserve may follow suit in September, other central banks like those in Switzerland, Sweden, and Canada have already made multiple cuts. Meanwhile, the Bank of England and the Reserve Bank of Australia remain hesitant, with the latter even considering further hikes. The Bank of Japan stands out as an outlier, having raised rates for the first time in 17 years. The gradual easing reflects varying economic conditions and inflation trends across different regions.

The gold market is experiencing volatility, with initial gains on Wednesday being reversed. Despite this, the overall trend remains bullish, with significant support around $2,400 and potential for reaching $2,500. Factors supporting gold include geopolitical concerns, expectations of global central bank rate cuts, and continued gold purchases by central banks. The market is viewed as a "buy on the dip" opportunity, with pullbacks seen as potential entry points for investors. While short-term fluctuations are expected, the long-term momentum favors an upward trajectory, making gold an attractive investment for those willing to navigate its current volatility.