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: "A Quadruple From Here Is LOGICAL"
Are you ready to witness the potential explosion in silver prices?
The Deadline To Turn in Your Gold – May 1st, 1933
We'll also take you back 91 years to reflect on Executive Order 6102 — one of the most highly controversial pieces of legislation in American history.
READ MOREEconomic Reality Check: Six Figures Not Enough for Middle-Class Comfort?
Inflation is reshaping the American middle-class dream. Once believing that a six-figure income would ensure a comfortable lifestyle with regular vacations and the ability to buy a home, many people today with "good jobs" find achieving these goals is nearly impossible. The reality of saving for a house or planning for future financial security feels out of reach for many, reflecting a broader trend where many in the middle class feel financially strained despite growing earnings and stable employment.
READ MOREGold Prices Skyrocket as China Increases Purchases and Speculation Intensifies
China's aggressive gold purchasing has significantly influenced the market, driving prices to over $2,400 per ounce amid global instability from conflicts like Ukraine's invasion and the Gaza war. This trend persists due to diminished confidence in traditional Chinese investments such as real estate and stocks, combined with the nation's central bank increasing its gold reserves and reducing U.S. debt holdings. Additionally, Chinese speculators anticipate further price gains, enhancing China's already substantial impact on the global gold market. This surge continues despite typical deterrents like rising interest rates and a strong U.S. dollar, marking a nearly 50% price increase since late 2022.
READ MOREU.S. Debt Crisis: Gen Z to Face Financial Challenges, Says Ex-White House Economist
The U.S. debt is escalating to unprecedented levels, and according to a former White House economist, Generation Z will bear the financial brunt of this burden, which has been exacerbated by previous generations and worsened by the Treasury Department's missed opportunities to mitigate the impact.
READ MOREOil Volatility Hits Multiyear Low as Threat of Mideast Conflict Lowers
Crude oil's geopolitical risk premium, a surge in price due to fears of a broader Middle East conflict, has disappeared as tensions between Israel and Iran have eased. With the diminished threat of conflict, market volatility has returned to multiyear lows, and the options market now leans towards puts, indicating reduced expectations of price spikes. Factors like interest rates, OPEC+ supply adjustments, and global demand now dominate pricing considerations. According to Tanvir Sandhu from Bloomberg Intelligence, the likelihood of Brent crude reaching $100 by the year's end has dropped significantly, from 17% to just 9%, reflecting a stabilization in the market and creating new trading opportunities.
READ MOREU.S. Treasuries Yield $2 Million Per Minute as Rates Soar
U.S. Treasuries are generating substantial income for investors, marking a significant turnaround from nearly two decades of low returns due to zero-rate policies. As benchmark rates climbed from nearly 0% to over 5% within just two years, investors now see a reliable source of income in these government bonds. Last year, investors earned nearly $900 billion from U.S. government debt, a figure that's double the average of the previous decade. Moreover, over 90% of Treasuries now offer coupons of at least 4%, providing a strong buffer against potential rate hikes. This resurgence highlights Treasuries’ renewed role as a dependable economic staple, capable of delivering consistent annual returns.
READ MOREGold Rebounds on U.S. Economic Uncertainty and Softening Job Market
Gold prices are up as mixed economic signals emerged from the U.S., prompting optimism about a potential "soft landing" for the economy amid ongoing Federal Reserve efforts to combat inflation. The metal saw a 1% rise on Monday, recovering after two consecutive weeks of losses—the first since February. This rebound reflects investor reactions to a recent U.S. jobs report, which suggested a slowing economy and alleviated fears of a recession coupled with high inflation. Chicago Fed President Austan Goolsbee indicated that such data trends could support a case for easing monetary policy this year. Despite these challenges, gold has surged approximately 12% this year, bolstered by central bank purchases, demand from Asian markets, and safe-haven buying due to geopolitical tensions.
READ MOREWeak U.S. Jobs Report Boosts Gold Prices As Many Speculate About Fed Rate Cuts
Gold prices rose on Monday due to a weakening U.S. dollar, following a disappointing U.S. jobs report that raised the possibility of the Federal Reserve cutting interest rates. Spot gold increased by 0.8% to $2,320.33 per ounce, while U.S. gold futures rose by 0.9% to $2,329.10. The underwhelming job growth and slowing wage increases suggest room for potential rate reductions by the Fed in 2024, according to Ricardo Evangelista, a senior analyst at ActivTrades.
READ MORERising Interest Rates Challenge Long-Standing Pro-Debt Economic Policies
Over the last decade, many economists have promoted the use of debt to finance government spending, dismissing concerns about potential debt overhangs as advanced economies enjoyed low interest rates. However, the past two years have seen a significant shift in this perspective due to rising inflation and a return to normal long-term real interest rates. A recent reassessment by senior IMF economists highlights that with average debt-to-income ratios in advanced economies projected to rise to 120% of GDP by 2028 and higher borrowing costs becoming the norm, there is a pressing need for these nations to rebuild fiscal buffers and ensure the sustainability of their debt.
READ MOREExpect Continued High Interest Rates as Fed Seeks More Progress on Inflation
On Wednesday, the Federal Reserve maintained its interest rates, emphasizing the need for "greater confidence" that inflation will consistently approach the 2% target. Despite earlier hopes, inflation in early 2024 has exceeded expectations, leading to predictions that even if the Fed were to cut rates later this year, high interest rates on credit cards and mortgages are likely to persist through the end of 2024. Given the declining APYs on longer-term CDs and some high-yield savings accounts, now is an opportune moment to secure higher savings rates.
READ MORECBS News: Top 4 Reasons to Add Gold to Your Portfolio
With inflation remaining high and interest rates elevated, reviewing your investment portfolio this May is more crucial than ever. Gold, which reached its highest investment level in over a decade last year and has been breaking price records recently, presents a unique opportunity. Unlike traditional assets like stocks and bonds, gold operates differently and offers distinct benefits. Considering the current economic conditions, there are several compelling reasons to consider adding gold to your portfolio this month.
READ MOREYen Predicted to Weaken to Lowest Since 1986 Amid Rate Disparities
Alvin Tan, head of Asia FX strategy at RBC Capital Markets and the top currency forecaster, predicts the yen could weaken to 165 per dollar, a level last seen in 1986. Despite Japan's potential interventions to support its currency, the significant interest rate gap between Japan and the U.S. continues to drive the yen's decline. Tan suggests that effective intervention would require coordination with the U.S., as the currency is expected to breach the 160 level and possibly reach 165 amid sustained bearish sentiment.
READ MOREInteractive Analysis: Has Your Pay Kept Up With Inflation?
The Brookings Institute explores the complexities of measuring real pay, which adjusts nominal earnings for inflation. Given the variety of pay and inflation metrics used, determining trends in real pay can yield differing results. Our interactive tool allows users to select any starting quarter and compare annualized changes in real pay to the most recent data, using four different pay measures and two inflation indices. By interacting with the data, users can see how real pay has shifted over selected periods, helping clarify the relationship between wages and the cost of living.
READ MOREU.S. Job Growth Disappoints in April, Unemployment Ticks Up to 3.9%
In April, U.S. job growth fell short of expectations with only 175,000 jobs added, compared to the forecasted 240,000, while the unemployment rate rose to 3.9%, marking a deviation from the recent trend of robust employment gains. This shift could influence the Federal Reserve’s strategy on interest rate adjustments. Additionally, average hourly earnings increased by only 0.2% month-over-month and 3.9% year-over-year, figures that were also below expectations, suggesting subdued inflationary pressures. The broader labor market indicators, such as the more comprehensive unemployment rate and labor force participation, also reflected some softening, with the former reaching its highest level since November 2021 at 7.4%.
READ MOREJapan Spends $59 Billion in Market Moves to Bolster Yen Amid Economic Woes
In a bold move to stabilize its currency, Japan is believed to have spent approximately ¥9 trillion ($59 billion) on market interventions over just four days, a move that traders and authorities have not officially confirmed. Despite these significant financial efforts, there are growing concerns among economists, traders, and businesses about the broader economic impact, as Japan's ageing and shrinking population continues to grapple with the after-effects of decades-long deflation. This large-scale intervention underscores the severe challenges the Japanese economy faces, and it may not prevent consumers from curbing their spending.
READ MOREYen Volatility Threatens Profitability of Emerging-Market Carry Trades
Recent interventions by Japanese officials to stabilize the yen have unsettled one of this year's most profitable financial strategies—carry trades. Typically, investors borrow yen due to its low yield and invest in higher-yielding emerging-market currencies. However, a spike in yen volatility to its highest level since July has led to losses this week, particularly affecting investments in the Indian rupee and Colombian peso. Data indicates that the carry-to-risk ratio for these yen-funded investments has dropped significantly from March peaks, suggesting a decrease in the strategy's attractiveness due to increased currency risk.
READ MOREGold Prices Steady as Investors Await Key U.S. Employment Data
The XM Research Desk, manned by market expert professionals, provides live daily updates on all the major events of the global markets in the form of market reviews, forex news, technical analysis, investment topics, daily outlook and daily videos.
READ MOREStarbucks, McDonald's Feel the Pinch as Diners Tighten Belts
The long-anticipated consumer pullback in spending is now evident in the restaurant industry, with notable chains like Starbucks, KFC, and McDonald’s experiencing declines in same-store sales. Starbucks saw a significant 17% drop in share prices following a surprising sales dip, attributed partially to adverse weather. Similarly, Yum Brands cited January snowstorms and challenging year-over-year comparisons for underwhelming performance across its brands, including Pizza Hut and Taco Bell.
READ MOREBiden Administration Cancels $6.1 Billion in Student Debt for 317,000 Amid Fraud Claims
The Biden administration has announced the forgiveness of $6.1 billion in student debt for 317,000 former students of The Art Institutes, following the chain's closure last fall amid fraud allegations. This move is part of President Biden's broader strategy to address the nation's $1.7 trillion student debt, especially after broader relief efforts were hindered by the Supreme Court last year. The Art Institutes were accused of misrepresenting employment rates and salary data, leaving many graduates with significant debt and few tangible benefits, according to U.S. Secretary of Education Miguel Cardona.
READ MORESteady Unemployment Claims Signal Robust U.S. Labor Market
Despite a slight stall in worker productivity in the first quarter, the U.S. labor market remains tight, with unemployment claims maintaining a steady, low level last week. Economists are optimistic, attributing the productivity slowdown to seasonal quirks and maintaining a positive outlook for the economy’s performance in the second quarter.
READ MORE