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 NEWSThe TRUTH About Costco Gold Bars
There’s a lot of hype about Costco’s gold bar sales lately...what is it all about? Why are Costco selling gold and silver bars in the first place
Silver'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
READ MOREGold Prices Defy Traditional Market Drivers in Recent Rally, Says Expert
Gold prices have surged this year despite a shift in the typical market dynamics, according to investment expert Imaru Casanova. Traditionally, gold rallies have been driven by robust investment demand and rising gold-backed ETF holdings. However, since April 2022, these factors have been in decline, even though the market has seen strong performance since hitting lows in October 2022. This divergence from historical trends suggests that the current rally in gold prices might have different underpinnings than those observed in past trends, challenging the conventional understanding of what drives gold market movements.
READ MORESilver Institute: World Silver Survey 2024
The Silver Institute has released its 2024 World Silver Survey, continuing its tradition since 1990 of providing a detailed annual analysis of the global silver market. This report offers a comprehensive overview of the past year’s silver demand dynamics and supply sources. For over three decades, the World Silver Survey has served as a reliable resource, extensively cited by industry experts, government bodies, and media for insights into the silver market.
READ MOREU.S. Reinstates Oil Sanctions on Venezuela Amid Election Promise Failures
The Biden administration is set to reimpose oil sanctions on Venezuela due to President Nicolas Maduro's failure to fulfill election commitments. This decision comes as the U.S. opts not to renew a license that previously eased sanctions on Venezuela's oil sector. With the license expiring, the U.S. Treasury Department has issued a temporary 45-day license to allow companies to conclude their operations in Venezuela's oil and gas industry. This move follows threats by Washington to reinstate energy sanctions if Maduro did not honor the commitments that had initially led to a partial lifting of sanctions after a U.S.-backed election deal with the Venezuelan opposition. These sanctions were first introduced in 2019 by the Trump administration after Maduro's controversial re-election, which was not recognized by the U.S. and other Western nations.
READ MOREU.S. Jobless Claims Hold Steady, Suggesting Strong Labor Market
The U.S. labor market continues to show strength as weekly jobless claims held steady at a low 212,000 for the week ending April 13, according to the Labor Department. This stability in unemployment filings indicates ongoing resilience in the job market, which, alongside persistent high inflation, is influencing expectations that the Federal Reserve might postpone interest rate cuts until September. Some economists are even skeptical about any rate cuts occurring this year. Rubeela Farooqi, chief U.S. economist at High Frequency Economics, noted that the labor market is likely to adjust through a slowdown in hiring rather than an increase in layoffs, suggesting continued economic stability without significant job losses.
READ MOREMorgan Stanley Predicts Continued Dominance of U.S. Dollar as Global Reserve Currency
Morgan Stanley asserts that the U.S. dollar will maintain its status as the dominant global reserve currency, despite facing various challenges and potential rivals, notably the Chinese yuan. Recent geopolitical tensions, such as Russia's conflict in Ukraine and domestic issues like the U.S. debt ceiling debates, have raised questions about the dollar's supremacy. However, the dollar's extensive influence across numerous economic and financial areas continues to be a significant factor in its favor. While some nations may explore alternatives due to the U.S.'s fiscal outlook and its frequent use of economic sanctions, replacing the dollar proves to be a formidable challenge, according to Morgan Stanley's latest report.
READ MORECrude Futures Decline as Israel Holds Back from Retaliating Against Iran
U.S. crude oil prices dropped below $83 as tensions in the Middle East showed signs of easing, with Israel holding off on an immediate retaliation against Iran following last weekend's unprecedented air assault. This restraint has reduced fears of a major conflict in the region, leading to a decline in oil prices for the fourth consecutive day. The West Texas Intermediate contract for May fell to $82.34 a barrel, while June Brent futures decreased to $86.77 a barrel. This week, oil prices have decreased by 4%, as traders reduce the geopolitical risk premium that had escalated over the previous two weeks due to heightened hostilities triggered by an Israeli airstrike on an Iranian diplomatic site in Syria earlier in the month.
READ MOREZimbabwe's Leadership Change Failing to Revitalize Its Troubled Economy
Despite Zimbabwe's rich gold reserves, the change in leadership from Robert Mugabe to Emmerson Mnangagwa has not resolved the country's deep-rooted problems. After Mugabe's 37-year rule ended in a 2017 coup, Mnangagwa, his former vice president, took power amid high expectations. However, Mnangagwa's tenure has mirrored Mugabe's, with the economy continuing to stagnate and political oppression persisting. The anticipated revolution has failed to materialize, leaving the country in a state similar to its condition under Mugabe's kleptocratic governance.
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.
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