U.S. consumers anticipate higher inflation despite optimism about personal finances. The New York Fed notes improved income expectations, but the job market outlook weakens. Meanwhile, inflation data shows moderate increases, and concerns remain over mortgage rates, which are predicted to stay above 6%. Precious metals, including gold and silver, exhibit notable price movements amid market volatility.
Minneapolis Fed president Neel Kashkari indicated modest interest rate cuts are likely, citing a strong job market. Meanwhile, gold prices surged, driven by central bank demand and lower interest rates. Investors expressed caution, leading to decreased homebuying and mortgage refinancing, amid fears of a potential recession and escalating U.S. national debt.
The Federal Reserve’s recent interest rate cuts have reduced mortgage rates, potentially increasing homebuyers’ purchasing power, but the U.S. housing market remains strained due to a housing shortage and rising expenses. Gold prices hit an all-time high due to economic uncertainties and strong demand. The U.S. economy grew by 3% in Q2, and a decline in oil prices is expected as Saudi Arabia unwinds production cuts. U.S. unemployment claims fell, indicating labor market strength.
U.S. stock indices fluctuated with FedEx earnings acting as a reality check after recent highs. Gold futures hit record prices over $2600 amidst economic uncertainty and anticipation of Fed rate cuts. Silver showed significant gains with a 10% rise, benefiting from positive investor expectations. The labor market showed improvement with a reduction in unemployment claims. Oil prices dipped despite a notable Fed rate cut, and currency trading saw significant movements with the USD/JPY rallying and EUR/USD facing pressure. Investors continued diversifying into precious metals as a hedging strategy.
Gold prices are just slightly up and silver prices are lower in early U.S. trading Tuesday, as a big and busy week of U.S. economic reports lies ahead.
Amidst factors typically bearish for the precious metal, gold prices posted solid gains on Thursday.
Amid a lack of fresh, markets-moving news to start the trading week, the precious metals market traders are looking at the key “outside markets” that are leaning friendly for metals prices.
Gold is at an inflection point post-Fed with prices pulling back on improved market sentiment and lower safe-haven demand.
1. Gold’s new high signals global central banks are likely accumulating the precious metal to diversify away from the dollar, as persistently large fiscal deficits threaten to erode its real value and lead to more inflation. Gold’s move has been broad as well as pronounced with the precious metal making 50-year highs versus three-quarters of…
1. The gold market is seeing solid follow-through buying activity following last week’s record closing price. The precious metal has pushed above $2,150 an ounce, and according to one market analyst, it has room to run. In an interview Jess Felder, founder of the Felder Report, he said he has been looking for gold to…
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