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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READ MOREExtreme Bargain Hunting: The New Normal for 2024 Holiday Season
As inflation continues to impact household budgets, US consumers are adopting extreme measures to save money during the 2024 holiday season. Shoppers are drastically cutting gift budgets, seeking out secondhand items, and starting their holiday shopping months in advance to secure the best deals. With holiday sales growth expected to slow, retailers face increased pressure as consumers prioritize essentials over discretionary spending.
READ MOREBig Banks Face Steep Decline in Macro Trading Profits
Wall Street macro traders are facing their worst year since the pandemic, with revenues from foreign exchange and rates trading expected to drop significantly. Over 250 major financial institutions are projected to see a 17% decline in rates trading revenue and a 9% decrease in currency trading revenue compared to last year. This downturn is attributed to tighter margins, reduced investor confidence, and a challenging macroeconomic environment.
READ MOREWedding Season Promises Boost for Indian Gold Market
Gold premiums in India remained steady as price fluctuations stabilized demand. Strong demand early in the week due to lower prices was offset by a later price increase. The onset of the wedding season is expected to improve demand, while China has issued import quotas to manage gold flows.
READ MOREECB Unfazed by Slight Inflation Rise, Rate Cut Expected
Despite a minor increase in Eurozone inflation to 2.3% in November, the European Central Bank is still anticipated to reduce interest rates. This decision is influenced by ongoing worries about sluggish economic growth and the potential impact of new U.S. tariffs under the incoming Trump administration.
READ MOREWall Street Braces for Slower Fed Rate Cuts in 2025
Wall Street analysts are revising their expectations for Federal Reserve interest rate cuts in 2025. While the Fed is expected to cut rates for the fourth time this year in December, economists predict a slower pace of cuts next year. Persistent inflation and solid economic growth have led to doubts about rapid rate reductions. Markets now project about two cuts in 2025, down from the Fed's earlier projection of four. Economists generally agree that the current federal funds rate is restrictive, but the extent of future cuts remains uncertain without significant improvement in inflation data.
READ MORETurkey Industry Struggles as Consumers Resist Holiday Splurge
Despite a 6% decrease in turkey prices, Americans are cutting back on Thanksgiving feasts due to ongoing concerns about food costs. Turkey production has fallen to its lowest level since 1985, yet prices are still dropping due to lackluster demand. Retailers are limiting purchases to reduce exposure, while consumers are opting for smaller quantities of turkey meat instead of whole birds.
READ MOREDrought and Disruptions Drive Coffee Prices to Historic Highs
Coffee prices have surged to their highest levels since 1977, with Arabica futures climbing to $3.17 per pound. This dramatic increase is primarily due to supply disruptions in major coffee-producing countries, particularly Brazil and Vietnam. A severe drought in Brazil earlier this year has raised concerns about the country's coffee output, while Vietnam has faced both drought during the growing season and heavy rains at the start of harvest. These supply issues are expected to impact consumers, with companies like Nestle already planning to raise prices and reduce package sizes.
READ MOREConsumer Spending Propels US Economy to 2.8% Growth in Q3
In Q3 2024, the US economy expanded at a healthy 2.8% annual pace, maintaining its momentum from previous quarters. Consumer spending, which accounts for about 70% of economic activity, accelerated to 3.5%, while exports surged by 7.5%. Although business investment slowed, particularly in real estate, equipment spending increased significantly. This steady growth pattern has persisted for most of the past two years, demonstrating the economy's durability.
READ MOREPrecious Metals Rally Ahead of Key Inflation Data
Gold prices climbed as the US dollar weakened, with investors awaiting key economic data that could influence the Federal Reserve's interest rate decisions. Spot gold rose 0.8% to $2,653.20 per ounce, recovering from earlier losses triggered by easing geopolitical tensions in the Middle East. Traders are focusing on upcoming US economic indicators, including the PCE inflation data, which may provide insights into the Fed's monetary policy direction.
READ MOREMorgan Stanley Eyes $2,700/oz for Q1 2025
Morgan Stanley forecasts gold prices to stabilize around $2,700/oz in Q1 2025, following a recent rally to record highs. While strong physical demand and rate cut expectations drove prices up, signs of weakening demand and macroeconomic uncertainties may limit further gains. Central bank purchases and ETF flows remain supportive, but slowing physical demand and increased supply could cap gold's upside potential.
READ MOREUS-China Relations Tested as Trump Threatens New Import Levies
President-elect Donald Trump has announced plans to impose a 10% tariff on Chinese goods, citing China's alleged failure to curb drug trafficking into the US. This move could potentially reignite trade tensions between the world's two largest economies. China has responded by defending its counter-narcotics efforts and calling for cooperation, while experts speculate on how President Xi Jinping will navigate this early challenge from the incoming Trump administration.
READ MOREMexican President Warns Trump's Tariffs Could Backfire Economically
Mexican President Claudia Sheinbaum announced plans to send a letter to U.S. President-elect Donald Trump, urging for dialogue in response to his proposed 25% tariffs on Mexico and Canada. She warned that such tariffs would lead to inflation and job losses in both countries, potentially violating the USMCA agreement. Sheinbaum emphasized Mexico's efforts in combating drug trafficking and reducing migrant arrivals, while highlighting the need for cooperation on shared issues like illegal arms trade from the U.S. The Mexican peso fell by 1.3% following the announcement.
READ MOREOil Markets Navigate Trump Tariff Threats and Middle East Ceasefire Talks
Oil prices rebounded slightly after a sharp decline, as traders grappled with President-elect Trump's tariff threats and potential progress on an Israel-Hezbollah ceasefire. Brent crude edged above $73 per barrel, recovering from earlier losses triggered by a strengthening dollar. The market remains cautious, balancing geopolitical risks against expectations of oversupply in the coming year.
READ MOREBuffett's Philanthropic Future: 99.5% of Fortune to Charity
Warren Buffett, the iconic investor and chairman of Berkshire Hathaway, has announced plans to donate 99.5% of his $149.7 billion fortune to charity upon his death. This wealth will be managed by a trust overseen by his children, Susie, Howard, and Peter Buffett, with designated successors if needed. Buffett has already donated over $58 billion since 2006, including another $1.14 billion in Berkshire stock to family foundations. His children will have a decade after his passing to distribute the remaining wealth for philanthropic purposes, continuing Buffett's legacy of generosity.
READ MOREMarkets Rally as Bessent Offers a Softer Approach to Trump's Policies
The appointment of Scott Bessent as Treasury Secretary is being welcomed by investors who anticipate he will moderate some of Trump's more extreme economic measures. This sentiment has fueled gains in US Treasuries and stocks, while the dollar has weakened. Bessent is expected to favor a cautious implementation of trade restrictions and focus on fiscal responsibility, which has provided a sense of relief to the financial markets.
READ MORETrump Trade Fuels Inflation Concerns for Federal Reserve
The post-election rally in stock markets, driven by expectations of pro-business policies under President-elect Donald Trump, is likely to elevate the Federal Reserve's favored inflation measure. This increase in stock prices affects the PCE price index by raising costs in portfolio management services, a critical component influencing Fed policy. As a result, the Fed may need to maintain a hawkish stance on interest rates unless there is a significant market correction.
READ MOREU.S. and Europe Brace for Divergent Economic Paths
The United States and Europe are set to diverge significantly in their monetary policies next year. The Federal Reserve plans to reduce interest rates less aggressively than the European Central Bank (ECB) due to higher growth and inflation projections in the U.S. Meanwhile, the ECB is expected to respond more forcefully to Europe's sluggish growth and low inflation. Donald Trump's proposed tax cuts and tariffs are anticipated to keep U.S. inflation above 2%, while Eurozone inflation may fall below the ECB's target. This divergence highlights concerns about the Eurozone's economic vulnerability, especially in light of potential trade tensions with the U.S.
READ MOREGold Dips 1% Amid Profit-Taking and New Treasury Secretary Appointment
The price of gold fell 1% on Monday as investors took profits after a five-session rally, reaching a three-week high. The decline was further influenced by the appointment of Scott Bessent as the new U.S. Treasury Secretary, which eased market concerns about trade wars, reducing the demand for gold as a safe-haven asset. Additionally, market participants are closely watching the upcoming Federal Reserve's November FOMC meeting minutes, GDP data, and core PCE figures, with a 56% chance of a 25 basis point rate cut expected in December.
READ MOREGold Prices Fall on Treasury Appointment and Interest Rate Concerns
Gold prices fell as traders reacted to Donald Trump's nomination of Scott Bessent as Treasury Secretary and anticipated the Federal Reserve's upcoming interest rate decision. Despite a weaker US dollar, which typically supports gold, bullion dropped nearly 2% after a significant rally last week driven by geopolitical tensions. The market views Bessent's nomination as a stabilizing factor for the economy, potentially reducing gold's appeal as an inflation hedge. Analysts suggest that profit-taking and Bessent's perceived moderate stance on trade may have contributed to the decline.
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