Gold Becomes World’s #2 Reserve Asset as Nations Seek Sanctions-Proof Holdings

Central banks worldwide have pushed gold to become the second-largest reserve asset after the US dollar, surpassing the euro for the first time. Gold now represents 20% of global reserves versus the euro’s 16%, following record purchases of over 1,000 tons annually since 2022—double the previous buying pace. This shift accelerated after Western nations froze Russia’s reserves following its Ukraine invasion, spurring countries to seek sanctions-proof assets. Gold prices have doubled since late 2022 as central banks, particularly those aligned with China and Russia, prioritize financial sovereignty over traditional yield considerations.

Trump Rules Out Firing Powell But Threatens Action on Interest Rates

At a White House briefing Thursday, President Donald Trump stated he would not fire Federal Reserve Chair Jerome Powell, despite his ongoing criticism of the Fed’s interest rate policies. Trump expressed frustration with the lack of rate cuts and suggested he “may have to force something” to achieve lower rates, though he didn’t specify what actions he might take. While criticizing Powell and calling him a “numbskull,” Trump confirmed the Fed Chair would keep his position. The President also voiced concerns about rising oil prices during the same remarks.

Goldman Reduces U.S. Recession Probability by 5 Points

Goldman Sachs has reduced its 12-month U.S. recession probability forecast to 30%, down from 35%, citing decreased uncertainty around President Trump’s tariff policies. The adjustment follows a new trade framework between the U.S. and China that helped calm investor concerns after April’s “Liberation Day” tariffs had disrupted global markets. Key aspects of the deal include the removal of Chinese export restrictions on rare earth minerals and restored access for Chinese students to American universities. While inflation data shows limited impact from tariffs so far, prices are expected to rise in coming months. The improved outlook has led Goldman Sachs to […]

London Fix Price: A Century-Old Benchmark in Precious Metals

The London Fix Price stands as one of the most influential benchmarks in the global precious metals market, setting daily reference prices that ripple through the entire bullion industry. From major institutional traders to individual investors, this century-old pricing mechanism affects how gold and silver are valued worldwide, directly impacting the bullion premiums that retail investors pay when purchasing physical metals.  What Is the London Fix Price?  The London Fix Price, formally known as the LBMA Price, is a daily benchmark price for precious metals established by the London Bullion Market Association (LBMA) and its member banks. These institutions represent […]

Treasury Yields Rise Despite Geopolitical Crisis as Oil Price Concerns Dominate

Following Israel’s attack on Iran’s nuclear program, the U.S. Treasury bond market experienced an unexpected selloff on Friday, pushing yields modestly higher. While investors initially sought the safety of government bonds late Thursday, this “safe-haven” demand quickly reversed. According to BMO Capital Markets strategists, the shift occurred as traders became more concerned about inflation risks, particularly from rising oil prices. The market found itself caught between two opposing forces: the typical flight to safety during geopolitical tensions versus worries about renewed inflation.

Why Tariffs Have Yet to Spark the Inflation Surge Economists Predicted

President Trump’s tariffs have had surprisingly little impact on inflation, with prices rising just 0.1% in May. While some imported goods saw increases—canned fruits and vegetables (1.9%), major appliances (4.3%), and coffee (1.2%)—overall inflation remains minimal. Three factors explain this: – Companies stockpiled imports before tariffs took effect – Price increases take time to work through the economy – Weak consumer spending limits businesses’ ability to raise prices Economists are split on what’s next. Some expect tariff impacts to emerge soon, while others believe weak consumer demand could actually lead to deflation—similar to the 1930s Smoot-Hawley tariffs. The Federal Reserve […]

Consumer Confidence Begins to Climb as Americans See Inflation Cooling

Consumer confidence in the US economy showed significant improvement in June, according to the University of Michigan’s preliminary sentiment index. The gauge jumped 8.3 points to 60.5, exceeding all economist forecasts and marking the first increase this year. The key driver was a sharp decline in inflation expectations—consumers now anticipate a 5.1% price increase over the next year, compared to 6.6% in May. Long-term inflation expectations (5-10 years) remained relatively stable at 4.1%. The survey revealed broad-based optimism, with the expectations index soaring 10.5 points to 58.4 and current conditions rising to 63.7. Sentiment improved across all political affiliations, with […]

Oil Markets Rally 8% as Israel Launches Strikes on Iranian Nuclear Sites

Oil prices jumped 8% on Friday after Israel conducted airstrikes on Iranian nuclear and military facilities, with Brent crude reaching nearly $74 per barrel. Israeli Prime Minister Netanyahu stated Israel would continue strikes “for as many days as it takes,” while President Trump urged Iran to negotiate over its nuclear program. As OPEC’s third-largest producer, Iran’s oil exports of 1.6-1.8 million barrels daily face potential disruption, creating uncertainty in global energy markets.

Safe-Haven Rush: Gold Jumps 1.7% on Israeli Strikes Against Iran

Gold surged 1.7% to $3,439.79 per ounce on Friday, nearing its April record of $3,500.05, as Israeli airstrikes on Iranian nuclear facilities and missile factories sparked fears of wider Middle East conflict. The precious metal posted a 4% weekly gain. Two factors drove the rally: escalating geopolitical tensions and softer U.S. inflation data that boosted expectations for Federal Reserve rate cuts. Gold typically thrives during uncertainty and when interest rates fall. Major banks remain bullish on gold’s outlook. Goldman Sachs forecasts $3,700 by end-2025, while Bank of America sees $4,000 within 12 months, both citing strong central bank buying. Despite […]

Precious Metals Crush Stock Market Returns as Investors Flee to Safety

Wall Street traders are turning to precious metals as uncertainty over trade policies drives investors toward safe-haven assets. Gold has surged 27.5% this year, silver is up 24%, and platinum has skyrocketed 36%, dramatically outperforming the S&P 500’s modest 3% gain. The metals rally reflects investors’ search for alternatives amid tariff concerns and a weakening dollar. Gold remains the primary safe haven, hitting near-record levels above $3,300 per troy ounce, driven by both investor demand and central bank purchases. Silver has benefited from its dual role as both a precious metal and industrial commodity used in solar panels and data […]