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.
Subscribe
TOP NEWSSilver's 44 Year Cup & Handle "Now, I Believe MID TO HIGH Triple Digits Are Baked in the Cake"
Dive into an epic financial adventure as we traverse through decades of silver pricing history, exploring striking chart patterns and bold predictions
SILVER ALERT: Could This Mexican Law Change Cause a Supply Crunch?
In this enlightening video, join our host Mike Maloney and esteemed guest Lobo Tiggre from Independent Speculator.com
READ MORETraders Exploit Loopholes in New Sanctions on Russian Metals
Traders quickly found loopholes in the new sanctions imposed by the UK and US against Russian metals like aluminum, copper, and nickel on the London Metal Exchange (LME). The sanctions, effective from April 12, prohibit the trading of Russian metals produced after this date on the LME. However, traders are focusing on the substantial stocks of Russian metals already stored in LME’s global warehouses to potentially capitalize on the market.
READ MOREPowell Cautious on Rate Cuts, Sees Longer Path to Inflation Target
Federal Reserve Chair Jerome Powell recently stated that the conditions necessary for reducing interest rates are unlikely to materialize soon, given the current economic data. Despite a significant decline in inflation in the latter half of last year, recent figures have not convincingly demonstrated progress toward the Fed's 2% inflation target. Powell emphasized the need for more substantial evidence of sustained inflation reduction before considering rate cuts. Financial markets, which had initially anticipated rate reductions as early as June, are now adjusting their expectations toward September, as reflected in the latest projections from the CME FedWatch tool.
READ MOREStocks End Mixed as Powell Signals Delayed Rate Cuts
U.S. stocks experienced fluctuations following Federal Reserve Chair Jerome Powell's cautionary remarks indicating that interest rate cuts may be delayed due to persistent inflation concerns. During a discussion at the Wilson Center, Powell expressed that recent data did not bolster confidence in quickly reaching the Fed's 2% inflation target, suggesting a more prolonged period of high rates. This led to mixed results in the stock market, with the Dow slightly up by 0.2%, while the S&P 500 and Nasdaq both declined. Concurrently, the 2-year Treasury yield briefly crossed the 5% mark, underscoring the market's reaction to the anticipated continuation of restrictive monetary policy.
READ MOREOpinion: Cutting Interest Rates is Misguided
The opinion piece argues that the Federal Reserve Chair Jerome Powell's focus on cutting interest rates may be misguided, given the persistent uncertainty around inflation returning to the 2% target and the growing concern over the federal deficit. The article suggests that lowering rates could exacerbate inflation, especially as significant investments by the Biden administration in manufacturing sectors like electric vehicles and semiconductors are already boosting factory construction, potentially fueling further inflationary pressures.
READ MOREDollar's Surge Triggers Market Interventions as Asian Currencies Tumble
The U.S. dollar's resurgence significantly impacted emerging-market currencies, particularly after China's decision to lower its yuan reference rate. This move intensified selling pressures across Asia, notably affecting the Indonesian rupiah, Indian rupee, and South Korean won. The ripple effect of the dollar's strength was felt globally, driving a key index of emerging-market currencies to annual lows and causing corresponding declines in stock markets. In response to severe depreciations, Bank Indonesia intervened to support the rupiah as it crossed 16,000 per dollar for the first time in four years, and South Korean authorities warned against the economic risks of rapid currency fluctuations.
READ MOREBiden-Harris Administration Proposes New Rules for Extensive Student Debt Relief
The Biden-Harris Administration has unveiled its initial draft rules aimed at providing student debt relief to tens of millions of borrowers nationwide. Announced last week in Madison, Wisconsin by President Biden, these proposals could potentially increase the total beneficiaries of the administration's relief efforts to over 30 million people. To date, nearly 4.3 million borrowers have benefited from approximately $153 billion in debt cancellation under various programs initiated by this administration.
READ MOREGold Forecasts Range from 25% to 50% Upside Over the Next Few Years
Gold is up, influenced by macroeconomic uncertainty, including tensions in the Middle East and the Federal Reserve’s stalled inflation measures. Despite this, gold is perceived as the most overvalued since August 2020, according to a Bank of America Fund Manager Survey. Although a net 26% of respondents believe gold has over-appreciated, there is still optimism, with projections suggesting a potential 25% to 50% increase in value over the next few years. However, 78% of fund managers see a global recession as unlikely within the next year, reflecting a more optimistic economic outlook compared to market behavior.
READ MOREOver $20 Million in Gold Stolen in Canada’s Largest Airport Heist
Nine people have been charged in connection with the largest gold heist in Canadian history, which occurred at Toronto’s Pearson International Airport last year. Peel Regional Police reported that 6,600 gold bars, valued over 20 million Canadian dollars, along with 2.5 million in various foreign currencies, were stolen. The stolen gold was later melted down and used to buy illegal firearms. Among those charged are an Air Canada warehouse employee and a former manager, who even guided the police on a tour of the cargo facility post-theft.
READ MOREGlobal Recession Unlikely, Says IMF's Top Economist
In a recent interview with CNBC, Pierre-Olivier Gourinchas, the International Monetary Fund's economic counselor, assessed the risk of a global recession as "fairly minimal." He highlighted several positive factors, such as robust economic performance in the U.S. and various emerging markets, and a quicker-than-anticipated decrease in inflation, despite some growth sluggishness in Europe. However, he cautioned that increasing tensions in the Middle East could pose risks to global economic stability.
READ MOREChina's Middle Class and Youth Turn to Gold as Traditional Markets Lose Shine
The article highlights the intense activity in China's gold markets, particularly at the Hualin International Jewelry Market in Guangzhou, amid a surge in gold prices. As traditional investment options like stocks, property, and banking lose their appeal due to increased uncertainty, gold has become a popular safe haven for investors. This shift has brought an influx of buyers, including many from China's middle class and younger demographics, and has led to a significant rise in the number of gold stores within the market.
READ MOREPrecious Metals on a Winning Streak: Time for a Hard Money Heat Check
In basketball, a "heat check" is when a player, emboldened by a series of successful shots, opts for a challenging attempt to gauge the persistence of their scoring spree. Today, we'll do our own financial "heat check" in the precious metals market, to assess whether the recent upward trend is set to continue.
READ MOREDespite Economic Headwinds, Gold Continues Its Surprising Uptrend
Gold prices have remained stable near record highs despite the Federal Reserve Chair Jerome Powell's recent remarks suggesting that interest rates may be maintained for a prolonged period. This year, gold has appreciated by about 15%, bolstered by safe-haven demands due to escalating geopolitical tensions in the Middle East and Ukraine. Even though rising Treasury yields and a stronger dollar typically undermine gold's attractiveness, the metal has continued its upward trend, surprising many observers. This resilience is supported by significant central bank purchases and growing demand from Chinese consumers. As of the latest trading session in London, spot gold was priced at $2,382.40 per ounce, nearing its peak of $2,431.52.
READ MOREGold Nears Record Highs Despite Fed's Hawkish Stance on Rates
Gold prices have held steady near record levels this year, gaining about 15% amidst ongoing geopolitical tensions in the Middle East and Ukraine. Despite a recent statement by Federal Reserve Chairman Jerome Powell indicating that interest rates might remain higher for an extended period due to persistent inflation, gold continues to attract safe-haven investments. This resilience comes even as Treasury yields and the dollar have risen, which typically dampens gold's appeal. The metal's sustained uptrend, in the face of higher borrowing costs and a stronger dollar, has caught the attention of market analysts.
READ MOREUBS Positive on Gold, May Rise to $2,500
Dominic Schnider, head of global commodities and foreign exchange at UBS Global Wealth Management, discusses the prospects for commodities including copper, gold and silver. He speaks on "Bloomberg: The China Show." Source: Bloomberg
READ MOREInvestors Flock to Gold as Middle East Tensions Escalate, Dollar Tumbles
Gold prices saw an increase on Wednesday, nearly touching their all-time highs, due to escalating tensions in the Middle East and a weakening U.S. dollar. The price of spot gold ascended by 0.2% to $2,388.56 per ounce, approaching its historical peak of $2,431.29. Conversely, U.S. gold futures experienced a slight decline of 0.1%, settling at $2,404.90. The rise in gold prices reflects investor sentiment seeking security amid growing geopolitical concerns, despite being technically overbought. Lukman Otunuga, a senior research analyst at FXTM, highlighted that the geopolitical instability is currently more influential on market dynamics than economic data or monetary policy expectations.
READ MORE446 Days and Counting: Recession Signal Fails to Predict Economic Downturn
For 446 days, the bond market's yield curve inversion, often seen as a recession predictor, has not resulted in an economic downturn. Historically, a normal yield curve shows higher long-term rates compared to short-term ones, indicating economic optimism. However, since July 5, 2022, the 2-year Treasury yield has consistently exceeded the 10-year rate, primarily due to aggressive Federal Reserve rate hikes aimed at curbing inflation. This condition matches the length of a similar inversion from 1978 to 1980 but has yet to lead to the anticipated recession.
READ MOREDebt Service Costs Threaten Sustainable Development in Developing Countries
Emerging nations are facing a severe financial dilemma as they contend with record-high external debt service costs of $400 billion this year. A recent report by the Debt Relief for Green and Inclusive Recovery Project (DRGR) highlights that 47 developing countries risk insolvency if they pursue necessary investments in climate adaptation and sustainable development to meet the 2030 Agenda and Paris Agreement objectives. This risk arises as these investments would push them beyond the external debt insolvency thresholds set by the International Monetary Fund (IMF), particularly over the next five years.
READ MORERenewed Geopolitical Tensions and US Inflation Spike Reignite Currency Market Volatility
Currency market volatility is on the rise, driven by increased geopolitical tensions in the Middle East and heightened inflation in the US. The recent attack by Iran on Israel and strong US inflation figures have led traders to speculate that the US dollar will strengthen, anticipating that the Federal Reserve might maintain stringent monetary policies longer than previously expected. This shift marks a significant change from just a month ago, when volatility was at multi-year lows, prompting speculation about a new era of stability in the $7.5 trillion-a-day foreign exchange market.
READ MOREChina's Gold Reserves Climb as Market Faces Mixed Demand Dynamics
In March, China's gold market witnessed diverse trends: official reserves increased, while wholesale demand slightly decreased. The Shanghai Gold Benchmark PM price surged by 10%, significantly outperforming other local asset classes. Although there was a mild drop in gold leaving the Shanghai Gold Exchange due to high prices, the first quarter saw the highest wholesale gold demand since 2019. The premium on China’s gold prices declined in March, indicating softer local demand; however, the quarter overall experienced the highest Q1 premium on record, driven by strong physical demand in earlier months.
READ MORE