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 NEWSGold's STEALTH Institutional Rally...What Happens When the Public Arrives?
Join us in this thoughtful discussion with investment expert Rick Rule, who sheds light on the understated yet steady increase in gold prices
The REAL Reason the South Lost the Civil War
As the Union and Confederate armies faced off during the Civil War, an equally fierce economic battle waged behind the scenes, ultimately deciding the war's fate.
READ MORETurkish Investors Turn to Gold as Safe Haven
In response to escalating Middle East tensions, Turkish investors like Faruk Mutlu are increasingly turning to gold as a safe investment. At a bustling jewelry store in Istanbul, Mutlu exchanged his savings for gold, citing its enduring value. The recent geopolitical instability, particularly the conflict between Israel and Iran, has fueled speculation about rising gold prices, spurring a rush to buy. This surge in demand is evident in Istanbul’s Kuyumcukent, the heart of Türkiye’s jewelry industry, where long lines at gold shops have become a common sight. Riza Gokay Tugsavrol, owner of Harem Gold, notes that in times of uncertainty, gold’s reputation as a secure asset makes it even more appealing to investors.
READ MORESteps Toward De-Dollarization in Zimbabwe
Vice President Constantino Chiwenga stated that Zimbabwe’s new currency, the ZiG, marks a significant move toward phasing out the US dollar in the national economy. Introduced on April 5 as a replacement for the unstable Zimbabwean dollar, the ZiG aims to restore monetary sovereignty in a country where over 80% of transactions are currently conducted in US dollars. Chiwenga emphasized the permanence of the ZiG, highlighting its role in Zimbabwe’s de-dollarization strategy, which focuses on fiscal discipline, monetary prudence, and economic revitalization.
READ MOREStocks and Bonds Retreat as Investors Brace for Economic Indicators
As Wall Street anticipates key economic data, both stocks and bonds saw declines, affecting market sentiments about the Federal Reserve's forthcoming actions. After a notable two-month high, equities found it challenging to advance, with investors eyeing results from Meta Platforms Inc. In contrast, Tesla Inc. saw an 11% rise after Elon Musk announced plans for more affordable vehicles. Meanwhile, Nvidia Corp.'s rally paused, and Treasury yields climbed as a substantial note sale did little to alleviate concerns about the market's direction following this year's downturn.
READ MOREGold Prices Hold Steady, Awaiting U.S. Data for Fed Rate Clues
Gold prices remained stable on Wednesday, recovering from recent lows as tensions in the Middle East subsided. Investors are now focusing on upcoming U.S. economic data, expected later this week, which may influence the Federal Reserve's interest rate decisions. Spot gold hovered at $2,322.09 per ounce as of 1:45 p.m. ET, with U.S. gold futures slightly down by 0.2% at $2,338.4. This follows a significant drop from the record high of $2,431.29 on April 12.
READ MORERecord Lows for Yen Trigger Stock Surge – But at What Cost?
The yen has consistently weakened to a 34-year low against the dollar, sparking concerns about its impact on Japan's economy and stock market. While the depreciating yen has initially boosted Japan's stock market—especially benefiting major manufacturers whose overseas earnings increase in yen terms—the ongoing weakness is raising alarms. The Topix Index, heavily influenced by transport equipment and electrical machinery companies, showcases this growth, but the question remains: How low can the yen go before it does more harm than good?
READ MOREWTI Nears $83 as Traders Respond to U.S. Economic Slowdown
Oil prices advanced, with West Texas Intermediate (WTI) closing near $83 a barrel, buoyed by the prospect of looser monetary policies which helped counterbalance diminishing geopolitical risk premiums. The oil market's gain was mirrored by a rally in equities, sparked by a report indicating this year's slowest growth in U.S. business activity—a development viewed by traders as a potential precursor to Federal Reserve interest rate cuts.
READ MOREGold Prices Stabilize as Focus Turns to Upcoming US Economic Indicators
Gold prices remained stable on Wednesday, as diminished risk premiums related to Middle East tensions were counterbalanced by the market's anticipation of upcoming U.S. economic data. This data is expected to provide key insights into the Federal Reserve’s future interest rate decisions. Spot gold closed flat at $2,322.09 per ounce by mid-afternoon, maintaining its position after dropping to its lowest level since April 5 in the previous session. Meanwhile, U.S. gold futures saw a slight decline, settling 0.2% lower at $2,338.40.
READ MOREU.S. Strategizes Financial Blockade on Chinese Banks Over Russia Support
The U.S. is preparing sanctions that could disconnect certain Chinese banks from the global financial system. This move aims to equip Washington's top diplomat with the leverage needed to curb Beijing's financial support for Russia's military efforts. As Secretary of State Antony Blinken visits Beijing this Tuesday, there are growing questions about whether the U.S.'s formidable financial tools can effectively disrupt the deepening trade ties between Beijing and Moscow, which have been crucial in supporting Russia's military resilience in Ukraine.
READ MOREGold Wavers as U.S. Economic Slowdown Spurs Rate Cut Speculation
Gold prices briefly recovered after falling to below $2,300, the biggest daily drop in nearly two years, influenced by weaker-than-expected U.S. business activity in April. This slowdown, marked by the first employment decline since 2020 and a contraction in the manufacturing and services sectors, has led to speculation about potential Federal Reserve rate cuts. Such cuts could benefit non-interest bearing assets like gold. However, despite a momentary lift from lower bond yields and a weaker dollar following the economic report, gold prices relinquished their gains amid diminishing geopolitical tensions in the Middle East.
READ MORECrude Retreats Below $83; U.S. Senate Targets Iranian Oil with New Sanctions
U.S. crude oil prices dropped back below $83 per barrel, reversing gains from a previous 2% rally as the market anticipates upcoming U.S. petroleum inventory data. The focus in the oil market has shifted back to supply and demand fundamentals, as geopolitical tensions between Israel and Iran, which previously influenced the market, have eased. Additionally, the U.S. Senate has approved a foreign aid package that includes expanded sanctions against Iranian oil, targeting entities involved in its transportation and processing.
READ MOREU.S. Economic Momentum Slows, S&P Surveys Indicate
April saw the U.S. economy lose steam, according to recent S&P surveys, with businesses experiencing a downturn in new orders and a cutback in employment—the first since the pandemic began. The manufacturing purchasing managers index (PMI) dropped to a four-month low of 49.9, slipping below the growth threshold from 51.9 in March. Similarly, the services PMI decreased to 50.9 from 51.7, marking a five-month low.
READ MOREU.S. Business Activity Slows to Four-Month Low; Mixed Inflation Signals Emerge
In April, U.S. business activity slowed to its lowest level in four months, driven by diminished demand. Concurrently, inflation indicators presented a mixed view: although the rate of inflation showed slight easing, input prices still surged, hinting at potential future relief if the economy continues to decelerate. This trend is particularly relevant as the Federal Reserve monitors for signs of slowing economic activity that might further reduce inflation pressures. S&P Global reported on Tuesday that its flash U.S. Composite PMI Output Index declined to 50.9 from 52.1 in March. A reading above 50 still signifies expansion, indicating continued growth in the private sector despite the slowdown.
READ MOREGoldman Sachs Cautiously Optimistic About Stock Market Rally Despite Emerging Risks
Despite recent downturns in the U.S. stock market, optimism remains high among investors, particularly regarding corporate earnings. According to a Bloomberg survey of 409 participants, nearly two-thirds express confidence that forthcoming corporate results will bolster the S&P 500 index—an optimism level not seen since the question was first posed in October 2022. Goldman Sachs strategists Dominic Wilson and Kamakshya Trivedi have described the situation as "paradise postponed," acknowledging emerging near-term risks to stocks, which they believe are concerning but not disastrous. Throughout the year, they have maintained a relatively positive outlook on the impact of the Federal Reserve's decision not to cut interest rates this year.
READ MOREUS Business Activity Slows, Marking Weakest Growth in Four Months
In April, US business activity experienced its slowest expansion of the year, triggered by a significant pullback in demand. This slowdown resulted in the first employment decline seen since 2020. The S&P Global flash composite index, which tracks output at manufacturers and service providers, fell 1.2 points to 50.9—the most substantial drop since August. While readings above 50 still denote expansion, the downturn is notable. Moreover, the composite measure of orders indicated the first contraction in six months, signaling potential challenges ahead for the US economy.
READ MOREJPMorgan Cautions Investors: Stock Market Troubles Not Over Yet
JPMorgan suggests that the recent stock market rebound does not signal the end of a sell-off, with the potential for further declines. The market outlook is dimmed by persistent inflation, a potential shift from expectations of Federal Reserve rate cuts to a realization of sustained higher rates, and stock valuations still above historical averages. Chief market strategist Marko Kolanovic indicates that while stock prices may stabilize in the short term due to earnings reports, the overarching market sentiment is one of caution. Kolanovic points to overconfidence in equity valuations, unyielding inflation, adjustments in Federal Reserve policies, and potentially too optimistic profit projections as reasons for his concern about the market's future.
READ MOREZeroHedge: Speculative Froth Departing Gold as China Tightens Trading Conditions
ZeroHedge reports a shift in the gold market as China implements stricter trading regulations, indicating a departure of speculative trading interest. While the consistent physical demand from central banks and Chinese retail buyers offers a stable base for gold prices due to their less price-sensitive nature, speculative traders—who are indifferent to the commodity and focus solely on profit—are exiting. This speculative group, likened to overexcited children, is known for rapid and volatile trading behaviors driven by trends rather than fundamentals.
READ MOREGold Futures Fall as Easing Geopolitical Strains Diminish Safe-Haven Appeal
Gold futures saw a notable decline to their lowest value since early April, with June contracts on the New York Mercantile Exchange dropping 1.4% to $2,313.5 per troy ounce. This drop reflects eased tensions in the Middle East, diminishing the metal's appeal as a safe haven. From an all-time high of $2,448.8 on April 12, gold has retreated by 2.9% over the past week but is still up 12.5% over three months. Ole Hansen of Saxo Bank regards this downturn as a healthy correction that could test the market's confidence in gold's upward momentum, suggesting the upcoming price movements will reveal the true demand for gold amidst potential sell-offs by hedge funds.
READ MOREU.S. Oil Falls as Fears of Iran-Israel Conflict Recede, Trading Below $81
U.S. crude oil prices dropped below $81 per barrel, a dip not seen since March, signaling the market's limited concern over potential new sanctions on Iranian oil. The West Texas Intermediate (WTI) crude has fallen beneath its 50-day moving average for the first time in several months, down from the year's high of $87.62. This decrease in price reflects the easing of geopolitical tensions as Iran and Israel move away from the prospect of a broader conflict, despite the recent exchange of strikes.
READ MOREDollar Soars to 34-Year High Against Yen Amid U.S. Rate Hike Expectations
The U.S. dollar reached a 34-year high against the Japanese yen, with the exchange rate peaking at 154.85 yen, influenced by the Federal Reserve's indication of maintaining higher interest rates for an extended period. The currency's rise comes as market participants anticipate potential intervention from Japan to strengthen the yen, which has continually hit record lows against the dollar this year.
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