Gold and Silver Industry & Investing News
Today’s gold and silver market news, curated from the best of GoldSilver's team and around the web. Everything precious metals investors need to know including updates on big price swings, macro analysis, and breaking stories. Check back often or subscribe to get the highlights in your inbox. Monitor live spot prices on our charts page.
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TOP NEWSThis Is the Greatest Manipulation of Gold In History
Discover shocking insights with Mike Maloney as he delves into what he claims is the greatest gold manipulation in history.
Thirty-Six Minutes of Chaos: Analyzing the Flash Crash
The "Flash Crash" wiped out nearly $1 trillion in market value in minutes, leading to significant regulatory reforms.
READ MORETreasury Yields Decline Following Lower-Than-Anticipated Inflation Report
U.S. Treasury yields fell on Wednesday after monthly consumer inflation data came in lower than expected. The yield on the 10-year Treasury dropped 10 basis points to 4.346%, while the 2-year Treasury yield decreased by nearly 9 basis points to 4.734%.
READ MOREUS Wholesale Inflation Hits Annual High, Signaling More Price Hikes Ahead
US wholesale inflation surged to its highest rate in a year in April, with the Producer Price Index (PPI) rising 2.2% year-over-year, surpassing March’s revised 1.8%. Monthly, prices increased by 0.5%, outpacing expectations. This trend suggests rising producer prices may soon impact consumer inflation, potentially keeping interest rates elevated for longer, as noted by Fed Chair Jerome Powell.
READ MORERising Costs Push Nearly 9% of Credit Card Balances into Delinquency
An increasing number of Americans are struggling to keep up with credit card payments, with 8.9% of balances falling into delinquency over the past year, according to the Federal Reserve Bank of New York. Rising costs and high interest rates are putting pressure on consumers, especially those under 30 and in low-income neighborhoods. Nearly 20% of cardholders are "maxed out," using 90% or more of their credit limit, which significantly raises the risk of falling behind on bills.
READ MOREGold Hits Three-Week High as Cooling Inflation Fuels Fed Rate Cut Hopes
Gold prices reached a three-week high on Wednesday, driven by a weaker dollar and lower yields after the U.S. consumer price index rose less than expected in April, increasing the likelihood of Federal Reserve interest rate cuts. Spot gold rose 0.4% to $2,367.29 per ounce, and U.S. gold futures rose 0.6% to $2,372.70, as investors anticipated that cooling inflation could lead to rate cuts by September.
READ MOREApril CPI Report Shows Inflation Easing, But Consumer Prices Up 3.4% Year-Over-Year
The Consumer Price Index (CPI) report for April showed a 0.3% increase from March, indicating that inflation is easing slightly. However, consumer prices are still up 3.4% from a year ago, matching expectations. Core inflation, excluding food and energy, was 3.6%, the lowest since April 2021.
READ MORECopper Prices Surge as Short Squeeze Sparks US Metal Rush
A short squeeze in New York's copper market has driven futures prices to record highs, causing a scramble to ship metal to the US. This surge has resulted in a significant premium for July Comex futures over later months and other global exchanges, prompting traders, particularly in China, to redirect copper shipments to meet delivery requirements.
READ MOREJerome Powell Expects Prolonged Rate Hold as Inflation Eases Slowly
Federal Reserve Chair Jerome Powell stated that inflation is decreasing more slowly than anticipated, necessitating that interest rates remain steady for an extended period. Speaking in Amsterdam, Powell acknowledged the unexpected persistence of inflation and emphasized the need for patience with current restrictive policies, while ruling out further rate hikes.
READ MOREGold Reserves in 2024: Discover Which Countries Hold the Most
Gold remains a vital financial asset, especially during times of crisis, and is held by many central banks for its stability and liquidity. This article uses the latest data from GoldHub to reveal which 30 countries have the largest gold reserves as of the first quarter of 2024.
READ MORECentral Banks Turn to Gold as Hedge Against U.S. Dollar Dominance
Amid geopolitical tensions and a reevaluation of economic partnerships, central banks are significantly increasing their gold purchases, viewing the metal as a stable, politically neutral asset. This trend, highlighted by IMF Deputy Managing Director Gita Gopinath, reflects a shift away from heavy reliance on the U.S. dollar due to its increasing use as a geopolitical tool. The World Gold Council reports that central banks have bought over 1,000 tons of gold annually in 2022 and 2023, making up a quarter of the total gold demand, underscoring gold's role as a hedge in a fragmenting global economic order.
READ MOREZeroHedge: Rothschild Family Ventures Into Bitcoin
In a notable shift within the investment landscape, the Rothschild family, traditionally associated with the origins of central banking, has entered the cryptocurrency market by purchasing a small stake in Bitcoin. This move came to light in recent SEC filings, which also revealed several major U.S. banks and asset managers disclosing investments in Bitcoin ETFs. Noteworthy banks like JPMorgan and Wells Fargo reported holdings, but the Rothschild investment, though modest at $3.6 million, stands out due to the family's historical financial influence.
READ MOREChina's Top Banks Launch $8.3 Billion Bond Sale to Boost Capital Reserves
Two of China’s largest state-owned banks, Industrial & Commercial Bank of China Ltd. and Bank of China Ltd., are initiating the sale of 60 billion yuan ($8.3 billion) in total loss-absorbing capacity (TLAC) bonds this week. This move is part of a broader strategy to bolster capital reserves and enhance their ability to support economic growth, in line with global banking requirements set for 2025. This issuance is also aligned with Beijing’s objectives to facilitate credit supply and reduce funding costs for businesses, even as it pressures the banks' already tight profit margins.
READ MORECopper Takes Center Stage in High-Stakes Global Commodities Battle
The global demand for copper has intensified recently, evidenced by significant moves in the industry such as the Biden administration's efforts to prevent Chinese dominance in copper supply by discussing potential investments in Zambian copper mines with companies from various nations friendly to U.S. interests. This strategic maneuver aims to secure a stake in First Quantum Minerals valued at up to $3 billion. Additionally, the high-profile takeover attempt by BHP Group for Anglo American's copper assets, which was recently rejected, underscores the fierce competition for control over this essential metal, crucial for technologies ranging from electric vehicles to AI data centers. Anglo American's decision to focus more on copper by divesting from other commodities further highlights the metal's central role in future global developments.
READ MOREGold Prices Tick Higher in Anticipation of Influential U.S. Inflation Data
Gold prices rose modestly on Tuesday, climbing 0.4% as investors awaited a key U.S. inflation report due later in the week. This report is anticipated to have significant implications for U.S. interest rate decisions, influencing the financial landscape and potentially easing the Federal Reserve's current rate cycle starting in September. Lower interest rates typically make gold, which does not yield interest, more attractive to investors. The outlook is partly based on consumer expectations, with predicted inflation rates expected to moderate over the next few years.
READ MOREFed Officials Suggest Interest Rates May Stay High to Combat Persistent Inflation
Several Federal Reserve officials have indicated that the aggressive interest rate hikes over the past two years might need more time to effectively reduce inflation, hinting at the possibility of maintaining or even increasing rates rather than cutting them this year. Despite sharp increases, higher borrowing costs have not significantly impacted American spending habits or cooled inflation as expected. This observation suggests that current interest rates may not sufficiently restrain economic activity or inflationary pressures, possibly requiring rates to remain elevated for an extended period. Fed Chair Jerome Powell also expressed the need for further observation to ensure inflation approaches the target, leaving the door open for continued high rates.
READ MOREStocks Rise; Key Economic Updates and Corporate Earnings on the Horizon
This week, the stock market saw gains, with the Nasdaq, S&P 500, and Dow Jones rising as Wall Street experienced a lull in economic data. The S&P 500 notably surpassed the 5,200 mark for the first time since early April. Looking ahead, key economic indicators such as the April inflation report, retail sales data, and initial jobless claims—which recently hit a nine-month high—will capture attention. Meanwhile, earnings reports from major corporations like Walmart, Home Depot, and Alibaba are set to punctuate a quieter earnings week.
READ MOREGlobal Platinum Market Faces Increased Deficit in 2024, Says WPIC
The World Platinum Investment Council (WPIC) forecasts a deeper global platinum deficit in 2024 than initially expected, attributing the shortfall to diminishing mine supplies from South Africa and Russia. Although the anticipated deficit of 476,000 troy ounces is less than 2023's 851,000 ounces, due to a 5% decrease in demand, it remains significant. This marks the second consecutive year of platinum scarcity, influenced by ongoing production challenges, including restructuring and delayed production increases in South Africa, along with reduced Russian output due to smelter maintenance and the impact of Western sanctions.
READ MOREInvestingHaven Reveals Seven Charts that Shows Silver is Undervalued
InvestingHaven's analysis presents seven charts illustrating that silver is substantially undervalued when its price is compared across various assets like the Australian Dollar, copper, the Dow Jones, treasuries, the CRB index, and even Bitcoin. This method of assessing silver's value through relative readings against diverse assets reveals a consistent undervaluation, providing a broader perspective on its potential as an investment. This multifaceted approach enhances the understanding of silver's market positioning beyond traditional price evaluations.
READ MOREChina Launches Massive $140 Billion Bond Sale to Fuel Economic Growth
China has initiated the sale of approximately $140 billion (Rmb1tn) in long-dated bonds to stimulate its economy and fund critical long-term projects. The People’s Bank of China is currently consulting with brokers to determine pricing for this substantial bond issue, which was announced during the annual legislative session to boost economic momentum and address ongoing challenges in the property sector. These bonds, which are part of a series of special sovereign bond issuances dating back to 1998, aim to support significant investments in modernization projects that require central government intervention and offer a more secure investment option amid volatility in regional banking and property markets.
READ MORESurvey Shows U.S. Tech Stocks Perceived as New Inflation Hedge
According to a recent Bloomberg Markets Live Pulse survey, while gold remains the preferred hedge against inflation for 46% of respondents, nearly a third now view major U.S. tech stocks as a viable alternative, reflecting a significant shift towards betting on innovation to counteract rising prices. This suggests a growing confidence in the tech sector's ability to offer financial stability even during inflationary periods.
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