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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Iran’s Currency Hits a Record Low
Iran's currency dropped to an all-time low of 613,500 to the dollar amid the Persian New Year celebrations. The scarcity of open exchange shops during the Nowruz holiday, which spans from March 20 to April 2, exacerbated the situation. High demand for foreign currency, particularly dollars and Euros, due to holiday travel, coupled with limited access to exchange services, significantly influenced the currency's valuation. This event reflects broader economic pressures and the impact of seasonal factors on Iran's financial stability.
READ MOREGold's Bright Future: Predicted Surge Past $2,500 in 2024
In 2024, gold is expected to shine brightly, driven by three pivotal factors: anticipated interest rate cuts by the US Federal Reserve, a weakening US dollar, and ongoing geopolitical tensions. These elements are forecasted to sustain high gold prices, with expert predictions suggesting that the metal will not only remain above $1,950 per ounce but could also surpass the $2,500 mark. This optimistic outlook is supported by several research agencies, which have adjusted their price forecasts upward, indicating a robust period ahead for gold investors.
READ MOREJP Morgan: Is It a Golden Era for Gold?
Recently, gold has responded strongly to real yields, buoyed by significant central bank purchases. With real yields peaking, ongoing geopolitical tensions, sustained demand from central banks, and robust retail jewelry demand, JP Morgan holds a positive outlook on gold. They argue for its inclusion in diversified portfolios for its potential to protect against short-term risks, serve as a long-term store of value, and diversify portfolio risk.
READ MOREStriking Gold: Could Miner's Returns Outpace Gold Bullion?
Over the last three years, physical gold has significantly outshined gold-mining company shares, marking one of the most substantial performance gaps in recent decades. Gold's value soared to a new record, surpassing $2,200 per ounce, whereas the PHLX Gold/Silver Index, representative of gold-mining companies, has not seen growth in the same period. This trend suggests that after a phase where gold shares lag behind physical gold, gold-mining shares usually bounce back, outperforming rather than gold bullion's performance declining. Therefore, the historical pattern indicates potential for gold-mining shares to offer lucrative returns in the wake of their underperformance compared to physical gold.
READ MOREGoldman Predicts Booming Commodities Market as Interest Rates Dip
Goldman Sachs forecasts a positive returns for commodities in 2024, anticipating a 15% return driven by global central banks lowering interest rates. This monetary policy shift aims to bolster both industrial and consumer demand. The firm highlights potential in copper, aluminum, gold, and oil, emphasizing selective investment due to non-uniform gains across all commodities. The optimism stems from a notable first-quarter performance, with commodities like crude oil strengthening, gold reaching new highs, and copper prices surging.
READ MOREGold Poised for Stellar Rise Amid Central Bank Buying and Fed Rate Cuts
Central banks' increasing interest in gold, alongside anticipated Federal Reserve rate cuts, are fueling expectations for a renewed gold bull run. The combination of strong physical demand, substantial official sector purchases, and the Federal Reserve's dovish stance is predicted to push gold prices to an average of $2,250 per ounce in the next quarter and maintain an annual average of $2,113 per ounce for 2024. With traders and investors currently under-positioned in gold, the expected reduction in interest rates could boost speculative interest and ETF demand, potentially driving prices to exceed $2,300 in the coming six months. Moreover, factors such as central banks' record gold purchases, the desire to hedge against inflation and default risks, and geopolitical tensions are likely to support and even amplify the price rally.
READ MORESAXO Bank: Gold is Ready to Rise
Will 2024 be the year of the metals? Gold has just reached a fresh record high driven by strong retail demand and record central bank buying. With the prospect for rate cuts in the US later this year, further strength could lie ahead.
READ MOREINCREMENTUM : Preview Chartbook of the In Gold We Trust Report
Incrementum is back with their latest chartbook featuring the latest gold and silver charts.
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Gold to $2,500? And Why This Silver Asset Should Top Your List
Since its inception in 1986, one silver bullion coin has become one of the go-to choices for investors seeking silver assets.
READ MOREBlackRock Cautions Against Long-Term Bonds
Leading asset management firm, BlackRock, warns that longer-term U.S. Treasury bonds may face risks if the Federal Reserve's anticipated interest rate cuts clash with persistent inflation. Despite the Fed's dovish stance, expecting three rate cuts this year amidst stronger economic growth, stubborn inflation could challenge this outlook. According to David Rogal of BlackRock's Fundamental Fixed Income Group, the current bond prices for intermediate and long-term maturities don't adequately account for the possibility of the Fed maintaining higher interest rates for an extended period
READ MOREDollar Climbs Higher as Global Interest Rate Policies Diverge
The dollar is on track for its second consecutive week of gains, showcasing its resilience and strength in the global currency market. This week has witnessed a significant shift in global monetary policy, with various major central banks adjusting their interest rate policies. Notably, even Japan's rate hike and Switzerland's unexpected rate cut have not slowed the dollar's ascent. These developments underscore the widening disparity in interest rate strategies between the Federal Reserve and other global central banks, further bolstering the dollar's position.
READ MOREKazakhstan Bolsters Its Economy with a Gold-Heavy Reserve Strategy
Over the past decade, Kazakhstan has significantly altered the composition of its gold and foreign exchange reserves, according to a report by LS. As of February 2024, the National Bank of Kazakhstan reported the country's total reserves at $36.1 billion, a 38.6% increase from $26.05 billion in 2014. This growth is characterized by a decrease in foreign currency assets by $4 billion and a remarkable increase in gold reserves by 3.2 times—from $6.3 billion in February 2014 to $20.01 billion in 2024.
READ MOREZeroHedge: Price Inflation Accelerates for Second Month as Biden Blames "Greed"
The Bureau of Labor Statistics reports a continued increase in the Consumer Price Index (CPI) inflation rate, marking a 3.2% rise year over year in February. This marks the 36th consecutive month where inflation has surpassed the Federal Reserve's 2% target. Contrary to earlier predictions, the recent data suggests that the inflationary trend is not as temporary as previously thought.
READ MORES&P 500 Hits 20th Record Record High in 2024
The S&P 500 marked its 20th record high of the year, propelled by a surge in risk appetite among investors. Despite experiencing declines in major technology firms like Apple Inc. and Alphabet Inc., the index's overall momentum remained robust. Concurrently, the Nasdaq 100 achieved a new peak, partly thanks to a positive outlook from Micron Technology Inc. Moreover, Reddit Inc. experienced a notable surge in its market debut. This market enthusiasm comes in the wake of encouraging data across housing, manufacturing, and the labor market, suggesting a sturdy economy.
READ MORETurkish Investors Flock to Dollars and Gold Amid Lira's Decline
In response to staggering inflation rates of 67%, Turks are increasingly seeking refuge in the stability of the dollar, gold, and stocks, moving away from the rapidly depreciating Turkish lira. In the bustling environment of Istanbul’s Grand Bazaar, traders congregate in what's known as a “standing market,” a vibrant hub resembling a stock exchange floor, to exchange precious metals and currencies. The current economic climate has severely undermined confidence in the Turkish lira, prompting individuals like trader Adnan Kapukaya to declare the national currency as "almost worthless." This dramatic shift in preference underscores the public's loss of faith in the lira due to unrelenting inflation and their consequent pivot towards more reliable assets.
READ MOREBANK OF AMERICA: Gold Still Has Upside, Despite New Record High
Gold prices have surged to record highs and Bank of America (BofA) Securities forecasts even further growth ahead. On Thursday, spot gold reached a new peak of $2,222.14 per ounce, while gold futures neared a record $2,224.80. This rally was fueled by the Federal Reserve's hints at possible rate cuts within the year, which weakened the U.S. dollar and, in turn, elevated gold's appeal. Over the past two years, rising interest rates had negatively impacted gold, but BofA now highlights gold as a prime investment for 2024.
READ MOREGold Prices Have Been Hitting Record Highs — Here’s Why the Rally Is Far From Over
Gold's remarkable rally has propelled its prices to record highs, with the potential to climb even higher, potentially reaching $2,300 per ounce in the latter half of 2024. This optimistic outlook is buoyed by expectations of rate cuts by the U.S. Federal Reserve, according to Aakash Doshi of Citi. Currently, gold is trading at $2,203. The precious metal often becomes more attractive when interest rates fall, as it competes favorably against fixed-income assets like bonds, which offer diminished returns in a low-rate environment. Moreover, central banks' record bullion purchases and significant futures buying, as noted by Macquarie, have played a critical role in driving gold prices upward, suggesting that the rally is far from reaching its peak.
READ MORESwiss Central Bank Cuts Rates, Getting Ahead of Global Peers
The Swiss National Bank (SNB) reduced its main interest rate by 25 basis points to 1.50%, setting a precedent as the first major central bank to reverse the trend of tightening monetary policy initiated to combat inflation. This decision, marking the SNB's first rate cut in nearly a decade, was announced under the tenure of Chairman Thomas Jordan shortly before his planned departure in September. The cut was also applied to the interest rate on sight deposits. The move came ahead of decisions by other European central banks, including the Bank of England and the Norwegian central bank, which held their rates steady, underscoring the SNB's proactive stance in adjusting monetary policy.
READ MOREGold Price Soars Past $2,200 as Fed Signals Rate Cuts
Gold's price climbed past $2,200 an ounce, marking a historic first propelled by investor optimism regarding the Federal Reserve's stance on interest rate cuts. This optimism has significantly bolstered the attractiveness of gold, which does not yield interest. The metal's price spiked to an all-time high of $2,220.89, reflecting a surge of over 10% since mid-February. This rally is largely attributed to anticipations of a more lenient U.S. monetary policy, enticing investors to place their bets on gold. Despite the rapid pace of this rally, the Federal Reserve's recent announcement, maintaining its plan for three rate cuts within the year and its tolerance towards the current inflation and labor market conditions, has reinforced bullish sentiments among gold traders, according to Chris Weston of Pepperstone Group Ltd.
READ MOREGold's Price Could Soar to $2,600, Predicts Top Market Analyst
Carley Garner, an esteemed analyst from TheStreet Pro with over two decades of experience in tracking markets through futures, including gold, has made a bold prediction about the precious metal's trajectory. Last summer, she accurately forecasted gold's impressive rally, suggesting it would surpass the $2,100 resistance level to reach new heights. Garner now updates her target, indicating that a similar upward movement could propel gold prices to as much as $2,600 per ounce. This prediction comes at a time when gold has seen a sharp increase in value, defying the expectations of many who believed it would falter amidst falling inflation and a renewed interest in stocks.
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