Gold and Silver Industry & Investing News

The Federal Reserve is holding steady on monetary policy as it assesses the economic impact of tariffs, according to Minneapolis Fed President Neel Kashkari. Speaking at an event in Wisconsin, Kashkari acknowledged that recent inflation data has been “quite positive,” with the Fed’s preferred inflation measure dropping to 2.1% in April. However, he emphasized that the central bank needs more time to understand the full effects of tariffs on prices before adjusting interest rates. This cautious stance aligns with Fed Chair Jerome Powell’s recent testimony to Congress, where he indicated no rush to lower rates. Fed officials are currently split...

In congressional testimony on Tuesday, Fed Chair Jerome Powell stood firm against President Trump’s calls for immediate interest rate cuts, stating the Federal Reserve is “well positioned to wait” before making policy changes. Powell explained that the Fed expects tariffs to increase inflation in coming months, starting as early as June, and wants to observe these effects before adjusting rates. Despite Trump’s harsh criticism calling Powell “dumb” and “hardheaded,” the Fed Chair received bipartisan support from committee members who praised his focus on the Fed’s core mission. Powell indicated that rate cuts could come sooner if inflation proves weaker than...

HSBC’s strategy team is pushing back against investor skepticism about their bullish stock market outlook. Despite concerns about tariffs, dollar weakness, and geopolitical risks, HSBC argues these worries are overblown. They point to positive wage growth, household wealth increases, and the potential for AI-driven growth as reasons to be optimistic. The bank also notes that historically, stocks have risen 81% of the time following geopolitical shocks, and they believe current market positioning still signals a buying opportunity.

Central banks have been slowing their gold purchases recently, with buying dropping 33% quarter-on-quarter in early 2024, partly due to reduced purchases from major buyers like China. However, experts don’t expect this trend to signal a permanent decline. The weakening faith in the U.S. dollar as the primary reserve currency is driving continued interest in gold, with sanctions prompting countries to seek alternatives to dollar assets. Gold has already surpassed the euro to become the second-largest global reserve asset in 2024 and is up over 25% for the year. Despite the recent slowdown, analysts believe ongoing economic uncertainty, inflation concerns,...

Federal Reserve Chair Jerome Powell is maintaining a cautious stance on interest rate cuts ahead of his congressional testimony, despite mounting pressure from President Trump and signs of division within the Fed itself. In his prepared remarks, Powell indicated the Fed will wait to better understand how trade wars affect the economy before adjusting rates, warning that tariffs are likely to push inflation higher and slow economic activity. The Fed has kept rates unchanged for four consecutive meetings, with the last cut occurring in December. This reluctance has frustrated President Trump, who took to Truth Social to urge Republican lawmakers...

Federal Reserve Governor Michelle Bowman signaled Monday that she’s ready to support lowering interest rates as early as the July 29-30 meeting, provided inflation stays contained. Speaking in Prague, Bowman suggested bringing rates closer to “neutral” levels to maintain a healthy job market. Her position echoes Governor Christopher Waller’s Friday comments supporting potential July action. Both Fed officials believe Trump’s tariffs will have limited inflation impact, noting many businesses already stockpiled inventory in anticipation. While President Trump advocates for aggressive 2-percentage-point cuts to reduce government borrowing costs, Fed officials haven’t specified cut sizes. The central bank held rates steady at...

Jerome Powell defended the Federal Reserve’s cautious approach to Congress, explaining why they’re holding interest rates steady at 4.25%-4.5% despite pressure from President Trump. The Fed Chair emphasized that officials need more clarity on how Trump’s evolving tariff policies will impact inflation and economic growth before adjusting rates. Trump criticized Powell on social media, calling him “dumb” and “hardheaded” for not lowering rates, which keep government borrowing costs high. Powell acknowledged that tariffs are likely to increase prices and potentially slow economic activity, but stressed that the actual effects remain uncertain as the administration continues to shift its trade policies....

Oil futures retreated significantly Tuesday, with both Brent and U.S. crude falling approximately 3%, as tensions between Iran and Israel showed signs of easing. The price decline came after President Trump’s warning to Israel and the announcement of a ceasefire, though implementation concerns remain. Oil had gained 10% since mid-June when hostilities escalated, driven by fears of supply disruptions from Iran (which produces 3.3 million barrels daily) and potential closure of the strategic Strait of Hormuz. Analysts note that while the strait’s closure remains unlikely, such an event could push oil prices above $100 per barrel. The International Energy Agency...