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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TOP NEWSALERT: Does This Map Signal the Beginning of Nuclear Conflict?
Are we on the brink of a nuclear conflict? In this critical video, Mike Maloney dives deep into the escalating tensions between Russia and NATO
How Much Gold Do I Need To Retire? 1oz Per Month?
Discover how much gold you need to retire and maintain a basic lifestyle in this insightful video by Alan Hibbard.
READ MOREOil Prices Trim Gains as U.S. Jobs Data Delays Rate Cut Expectations
Oil prices trimmed gains on Friday due to heightened demand concerns after stronger-than-expected U.S. jobs data diminished hopes for an imminent Federal Reserve rate cut. Brent crude rose by 12 cents to $79.99 a barrel, and U.S. West Texas Intermediate increased by 28 cents to $75.83. The robust jobs report suggests that rate cuts may be delayed until at least September, impacting expectations for economic activity and oil demand. Despite this, OPEC+ support from Saudi Arabia and Russia has helped stabilize prices.
READ MOREIndia Ranks Third in Gold Purchases as Global ETFs Recover
In May, the global gold market rebounded with gold ETFs ending a 12-month slump, driven by strong demand in Europe and Asia. Global gold ETF holdings rose to 3,088 tonnes, with assets under management reaching $234 billion, a 2% increase. India emerged as the third-largest gold buyer, purchasing $86.5 million worth. European and Asian gold ETFs saw significant inflows, while North America experienced minor outflows. Trading activities declined overall, with the average daily volume down 13% from April.
READ MOREU.S. Job Growth Surpasses Expectations with 272,000 New Jobs in May
In May, the U.S. added 272,000 jobs, significantly surpassing expectations of 190,000 and the previous month's 165,000. Despite the job growth, the unemployment rate rose to 4%, the highest since January 2022. Job gains were primarily in health care, government, and leisure and hospitality. Average hourly earnings also increased by 0.4% for the month and 4.1% year-over-year.
READ MOREPolitical Uncertainty Drives Britons to Gold, Reports Royal Mint
Following the announcement of the general election on July 4th by Prime Minister Rishi Sunak, The Royal Mint has reported a significant increase in gold sales. Investors, seeking a safe haven during political uncertainty, have caused gold purchases to rise by 117% and spending on bullion to jump by 145%. Notably, 10% of recent buyers are new to investing in precious metals.
READ MORESaudi Arabia Joins China-Led CBDC Project for Cross-Border Trade
Saudi Arabia has joined Project mBridge, a central bank digital currency (CBDC) cross-border trial led by China and supported by the Bank for International Settlements (BIS). This project, which includes central banks from China, Hong Kong, Thailand, and the UAE, aims to facilitate cross-border transactions and reduce reliance on the U.S. dollar in global oil trade. The BIS announced that Project mBridge has achieved the "minimum viable product" stage, advancing beyond the prototype phase. The initiative highlights the growing global interest in CBDCs, with 135 countries exploring their potential despite technical and political challenges.
READ MOREOpinion: Fed Should Cut Interest Rates to Avoid Economic Harm
It's time for the Federal Reserve to cut interest rates, having effectively cooled inflation through aggressive hikes. Persistently high rates are based on a flawed understanding of homeownership costs, which risks unnecessary economic harm. Inflation, measured by the personal consumption expenditures (PCE) deflator, peaked over 7% two years ago and has since fallen below 3%, though still above the Fed's 2% target. However, the PCE and consumer price index measures of inflation are flawed due to their problematic reliance on estimated rental costs for homeowners.
READ MOREGlobal PMI Data Shows Persistent Price Inflation in May
Global PMI data for May indicates a slight increase in the average prices charged for goods and services, driven by persistent price hikes in services and accelerating manufacturing costs. While Europe shows signs of cooling inflation, the U.S. data aligns with the Fed's target inflation levels. The PMI Prices Charged Index rose marginally to 53.3, reflecting sustained inflation rates above pre-pandemic levels.
READ MOREECB Lowers Rates for First Time Since 2019 Amid Inflation Concerns
The European Central Bank (ECB) cut interest rates for the first time since 2019, reducing the key rate from 4% to 3.75% amid persistent inflation in the eurozone. This decision, influenced by updated inflation forecasts and the strength of monetary policy transmission, follows nine months of steady rates. The ECB also raised its inflation outlook for 2024 to 2.5% and for 2025 to 2.2%. Markets had anticipated this 25 basis point cut and predict one more reduction this year, though some economists expect two additional cuts.
READ MORESocGen Identifies 3 Key Indicators of Approaching U.S. Recession
Société Générale warns that the U.S. economy is nearing a recession, citing three key signs observed in the past week: reduced economic growth expectations, slowed manufacturing activity, and declining inflation measures. Despite some optimism for a soft landing, the bank's chief global strategist, Albert Edwards, highlights these red flags as indicators of an impending downturn.
READ MOREGold Gains on Fed Rate Cut Hopes; Copper Prices Rebound
Gold prices surged in Asian trade on Thursday, driven by weak economic data that bolstered expectations of Federal Reserve rate cuts, which weakened the dollar. Traders are optimistic about global monetary easing, with rate cuts expected from the Bank of Canada and the European Central Bank. Spot gold rose 0.6% to $2,370.40 an ounce, while gold futures fell 0.6% to $2,389.70 an ounce. Meanwhile, copper prices rebounded from a one-month low, supported by a softer dollar, with benchmark copper futures rising 1.5% to $10,074.50 a tonne.
READ MORESilver Achieves Major Milestone, Outpacing Gold's Gains
Silver, often overshadowed by gold, has recently gained significant investor interest by breaking a key resistance level of $30 per ounce for the first time in over a decade. Despite a slight selloff, silver's performance is reminiscent of past bull runs, outpacing gold in percentage gains with a 44.6% surge from its February low compared to gold's 21.7% increase.
READ MORETreasury Yields Remain High Amid Growing U.S. Debt Concerns
Bond industry leaders warn that the rising U.S. debt load poses significant risks to the Treasury market, with sustained high long-term Treasury yields and an unlikely prospect of spending cuts or tax increases, regardless of the upcoming presidential election results. The U.S. debt has grown to $27 trillion, with projections reaching $48 trillion by 2034, raising concerns about the country's fiscal direction over the next decade.
READ MOREGold ETF Surge: A Conversation with State Street’s Expert
Gold prices have surged, making the metal a key focus at last week’s Alternatives Symposium. State Street, a leader in gold ETFs, offers the SPDR Gold Shares (GLD) and the SPDR Gold MiniShares Trust (GLDM), both up about 14% this year, with GLDM attracting significant inflows. I interviewed George Milling-Stanley, State Street’s chief gold strategist, to gain insights from this prominent gold analyst.
READ MOREGold Defies Market Trends as Investors Flock to the Metal
In 2024, gold prices have surged to record highs, defying traditional market correlations with the U.S. dollar and equity markets. This surge has driven increased physical gold transactions, with strong demand from central banks and continuous buying from China. In the U.S., investors are purchasing gold from various sources, including popular retail chains like Costco. Terry Hanlon, president of Dillon Gage, notes busy activity from both buyers and sellers, driven by geopolitical concerns and inflation. The World Gold Council reports a 3% year-over-year increase in gold demand in the first quarter of 2024, marking the strongest first quarter since 2016.
READ MOREChina Sees Rise in Fake Gold Scams Amid Bullion Investment Boom
China is experiencing a surge in fake gold scams, defrauding consumers as gold prices rise and many citizens turn to bullion for financial security amid economic uncertainty. These scams involve selling inferior gold marketed as "999 gold" online. The increased demand for gold, driven by both consumer purchases and the central bank's acquisitions, has expanded the bullion and jewelry market, creating opportunities for fraudsters. Despite numerous complaints, major online platforms have yet to address the issue publicly. The government has issued guidelines to help consumers verify gold authenticity.
READ MOREJapan's ¥9.8 Trillion Currency Intervention Defended by Finance Minister
Japan's Finance Minister Shunichi Suzuki confirmed the government's currency intervention aimed at countering speculative FX moves, stating it had a certain effect. This intervention, costing ¥9.8 trillion ($62.7 billion), was the first official acknowledgment of the action. The yen strengthened after interventions between April 26 and May 29, suggesting effectiveness, though the exact timing remains undisclosed. Officials often stay silent post-intervention to maintain market uncertainty and prevent excessive currency movements.
READ MOREUpcoming Jobs and CPI Reports Crucial for Fed's Interest Rate Decision
As Wall Street anticipates the upcoming jobs report and Consumer Price Index (CPI) release, both critical for gauging the economy's health amid ongoing inflation concerns, the Federal Reserve's next interest rate decision looms. Peter Borish, Chairman and CEO of Computer Trading Corporation, discusses the history of inflation and risk management strategies in a volatile market. He likens the current market to a "tug-of-war" and advises beginner traders to diversify portfolios and manage emotions, accepting the inherent risks and pains of investing.
READ MOREGlobal Public Debt Reaches $97 Trillion, Developing Nations Struggle
The United Nations reported that global public debt reached a record $97 trillion in 2023, with developing countries holding about one-third of this debt, severely impacting their ability to fund essential services like healthcare, education, and climate action. The debt increased by $5.6 trillion from 2022, driven by high interest payments that surpass growth in crucial public spending. The report calls for changes in the international financial system to ensure sustainable development. The U.S., China, and Japan are the top debt holders, while Egypt, Mexico, Brazil, and India lead among developing nations.
READ MORENYSE Resolves Software Glitch After Erroneous 99% Stock Drop Displays
A software glitch during a Monday update caused the New York Stock Exchange (NYSE) to mistakenly halt trading on around 40 stocks and display abnormal trades showing a 99% drop, including in Berkshire Hathaway Inc. The issue, the third market disruption in a week, was resolved after 45 minutes by switching to a backup data center. NYSE will cancel incorrect trades and review the halts for further actions. The error occurred as the Consolidated Tape Association implemented a software update affecting the Securities Information Processor feed.
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