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.
Subscribe
Investors Flock to Gold, Pushing Prices to Record Levels Before US Vote
Gold prices have reached a new record high, driven by investor demand for safe-haven assets ahead of the upcoming US presidential election. The precious metal's value has surged by over a third in 2024, fueled by geopolitical tensions, central bank purchases, and expectations of Federal Reserve rate cuts. The tight race between Kamala Harris and Donald Trump is contributing to market uncertainty, further boosting gold's appeal.
READ MOREInflation Cools as US Economy Grows 2.8% in Third Quarter
The US economy grew at an annualized rate of 2.8% in the third quarter of 2024, slightly below the expected 2.9% and lower than the previous quarter's 3% growth. Despite falling short of expectations, economists view this as a sign of solid economic performance. The core PCE index, a key inflation measure, increased by 2.2%, showing a decline in inflation while still exceeding forecasts.
READ MOREWorld Gold Council Reports Q3 Gold Demand Reaches $100 Billion Milestone
Global gold demand hit a record high in Q3 2024, reaching 1,313 tonnes, up 5% year-on-year. The value of gold demand surged 35% to exceed $100 billion for the first time, driven by rising gold prices and renewed interest in gold ETFs. Factors contributing to gold's strength included expectations of falling interest rates, Middle East conflicts, and US election uncertainty.
READ MOREYellen Targets 'Unbanked' Population with New Financial Strategy
Treasury Secretary Janet Yellen has introduced a plan to increase financial inclusion in the United States. The strategy aims to ensure more Americans have access to bank accounts and affordable credit, which Yellen believes will lead to a stronger and more equitable economy. The plan includes encouraging account openings, expanding affordable banking options, improving credit access, and enhancing retirement and emergency savings opportunities.
READ MOREHSBC Unveils New Gold Token at Hong Kong Fintech Week
HSBC introduced its gold token at Hong Kong Fintech Week, representing the first bank-issued real-world asset token linked to physical gold. Launched in June 2024 for Hong Kong residents, each token equals 0.001 ounces of gold and is based on a private distributed ledger. The token allows for fractional gold ownership, easier buying and selling, and has attracted 20,000 holders, with 90% being new to gold investments.
READ MOREHurricanes and Strikes Cloud October Jobs Report, Complicating Fed's Decision
The upcoming October jobs report is expected to show muted employment growth due to the impacts of Hurricanes Helene and Milton, as well as ongoing strikes at Boeing. With estimates ranging widely from job losses to modest gains, the report will be difficult to interpret clearly. This complicates the Federal Reserve's decision-making ahead of its November meeting and adds uncertainty to the economic narrative just before the presidential election.
READ MORE
Gold Hits Record High Price BUT Is SILVER the Buying Opportunity?
Gold has just hit an all-time high of over $2,750 per ounce, shattering predictions and making 2024 a record-breaking year for the precious metal!
READ MOREEarnings Rebound on the Horizon: CEOs Signal Turning Point for Corporate America
Corporate America is signaling a potential turnaround in earnings, with CEOs indicating that the current quarter may represent the bottom. This sentiment, particularly among cyclical companies, suggests that the stock market rally could extend beyond technology shares. As the economic environment improves and the Federal Reserve eases its stance, there's growing optimism for a broader recovery in earnings across various sectors.
READ MOREOil Traders Eye US Election and OPEC+ as Geopolitical Risks Subside
The oil market is rebalancing as geopolitical concerns subside, causing traders to refocus on supply and demand dynamics. After a sharp decline, oil prices have begun to recover, but the market remains influenced by factors such as sluggish Chinese demand growth and ample supply. Key upcoming events, including the US presidential election and OPEC+ production plans, are expected to play crucial roles in shaping the market's future direction.
READ MOREElection Uncertainty and Economic Data Drive Gold's Ascent
Gold prices are approaching record highs as investors focus on the upcoming U.S. presidential election and key economic data releases. The precious metal's value has increased by about a third this year, driven by central bank purchases and safe-haven demand amid global conflicts. The tight race between Kamala Harris and Donald Trump is creating uncertainty, further highlighting gold's role as a safe investment.
READ MOREEl-Erian: Dollar Diversification Fuels Gold's Unprecedented Rally
Mohamed El-Erian attributes the recent surge in gold prices to a deliberate move by global financial institutions to diversify away from the US dollar. This trend is driven by central banks slowly reducing their dollar reserves and a gradual shift away from the dollar-based payment system. Recent events, such as Russia's economic resilience despite sanctions and perceptions of inconsistent US foreign policy in the Middle East, have accelerated this diversification process.
READ MOREBlackRock: Opportunity Cost of Holding Gold is Falling
As interest rates decline, the relative appeal of gold is increasing, according to BlackRock's Karim Chedid. He notes that gold's non-yielding nature is less of a drawback in this environment, positioning it as a valuable diversification hedge for investors seeking to balance their portfolios.
READ MOREHigh Prices Reshape China's Gold Consumption Patterns in 2024
China's gold consumption dropped 11.18% in the first three quarters of 2024 due to high prices deterring jewelry purchases. While gold jewelry demand fell 27.53%, purchases of gold bars and coins increased by 27.14%. Despite a slight dip in domestic gold production, overall output rose 3.2% year-on-year.
READ MOREGold Rally Pauses: Money Managers Raise Net-Long Positions in Gold
Gold prices retreated slightly from record highs after Israel's restrained strikes on Iran eased geopolitical tensions and reduced safe-haven demand. While gold remains supported by factors like expected Fed rate cuts and central bank buying, the targeted nature of Israel's response has opened the door for potential de-escalation in the Middle East conflict.
READ MOREGold Prices Pause Ahead of Key U.S. Economic Indicators
Gold prices dipped slightly Monday morning as investors await key U.S. economic data that could influence the Federal Reserve's interest rate decisions. Despite reaching record highs recently, gold faced pressure from a stronger dollar and rising Treasury yields. Analysts remain optimistic, with UBS projecting gold to hit $2,900/oz within 12 months, driven by expectations of lower U.S. interest rates.
READ MORE
Warren's Warning: This Market Signal Just Made History
The Oracle's favorite market metric hits unprecedented levels. Meanwhile, physical metals outshine mining stocks in the gold rush.
READ MOREGold Rush Fizzles: Miners Struggle Despite Bullion Boom
Gold miners are struggling to capitalize on record-high gold prices due to rising operational costs, particularly in labor and other expenses. Newmont Corp., the world's largest gold miner, reported disappointing earnings, revenue, and profit margins in the third quarter, causing its stock to plummet. This suggests that the gold mining industry may be facing challenges in translating high gold prices into increased profitability, as inflationary pressures continue to impact their operations.
READ MOREIs Silver the New Gold? Industry Demand Challenges Traditional Hierarchies
Silver prices have reached historic highs on the Multi Commodity Exchange. Anil Agarwal from Vedanta Group highlighted the increasing industrial importance of silver. Demand has doubled, driven by its use in various industries. Hindustan Zinc, part of Vedanta, is a significant producer, and a new industrial park in Rajasthan aims to boost local industries and job creation around silver production.
READ MOREKremlin's Economic Gambit: 21% Interest Rate to Tame Runaway Inflation
Russia's central bank has raised its key interest rate to a record-high 21% in response to persistent inflation, which reached 8.6% year-on-year in September. The bank cited strong domestic demand outpacing supply capabilities and increasing inflation expectations as reasons for the rate hike. This move comes as Russia's economy continues to grow, driven by oil export revenues and increased government spending, particularly on military expenses related to the ongoing conflict in Ukraine.
READ MOREProfit-Taking Halts Gold's Ascent, Geopolitical Tensions Provide Support
After reaching an all-time high of $2,758.37 per ounce on Wednesday, gold experienced a modest decline on Friday due to profit-taking. The precious metal's price fell 0.4% to $2,724.50 per ounce, though its downward movement was limited by persistent geopolitical concerns and the approaching U.S. presidential election.
READ MORE