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
TOP NEWSWhat Is Driving Gold & Silver Prices?
Join Mike Maloney in this enlightening discussion on “What Is Driving Gold & Silver Prices?”
This Is the Greatest Manipulation of Gold In History
Discover shocking insights with Mike Maloney as he delves into what he claims is the greatest gold manipulation in history.
READ MORECopper Short Squeeze Rocks Global Markets as US Prices Soar
A massive short squeeze in New York has sent copper prices skyrocketing, with the Comex premium over the London Metal Exchange price surging to over $1,200 per ton. This unprecedented price spread has wrong-footed major traders and hedge funds, sparking a frantic scramble for copper to fulfill expiring contracts. Despite no overall physical shortage, the squeeze highlights tight US copper supplies, exacerbated by solid demand and shipping issues. Analysts expect further market volatility as traders rush to move copper to the US, with some relief potentially coming in early June.
READ MOREPrecious Metals "Red Hot" Rally Set to Continue, Say Strategists
Gold, silver, and platinum prices have surged following softer-than-expected U.S. inflation data, which raises the prospect of Federal Reserve rate cuts. Gold reached a three-week high, silver hit its highest level in over three years, and platinum climbed to a near one-year peak. Saxo Bank strategists predict gold could soon test $2,400, silver may reach $30, and platinum has the potential to hit $1,130 per ounce. Despite some cautious forecasts, analysts from ROTH Capital Partners see gold potentially reaching $2,600 and silver climbing as high as $37.
READ MOREUS Dollar Dominates Amid Global Economic Shifts
The US dollar continues to flex its muscles in 2024, driven by strong economic data and fewer expected Fed rate cuts. Despite global growth improvements and rising oil prices, the dollar remains resilient, while the euro, pound, and yen face mixed prospects. Key factors include potential ECB rate cuts, BoE policy shifts, and the Fed's significant influence on USD/JPY dynamics.
READ MOREElite Hedge Fund's GameStop Bet Nets Millions Amid Meme Stock 400% Surge
Renaissance Technologies, an elite hedge fund, strategically acquired 1 million GameStop shares last quarter, reaping significant gains as the stock surged over 400% this week. Initially worth $13 million, the stake briefly soared to $65 million at Tuesday's high, driven by renewed interest from retail investors like Keith "Roaring Kitty" Gill. RenTech, known for its algorithmic trading, also made notable portfolio adjustments, increasing its AMC holdings and reducing stakes in Nvidia and Tesla, showcasing its dynamic investment strategy amidst market volatility.
READ MOREChina Dumps Record Amount of US Debt Amid Strategic Diversification
China sold a record $53.3 billion in US Treasury and agency bonds in Q1 2024, marking a significant shift away from American assets as trade tensions with the US escalate. Analysts interpret this move as a deliberate diversification strategy, with China increasing its gold reserves to 4.9%, the highest since 2015. This trend, coupled with rising geopolitical tensions and potential tariff hikes from both the Biden administration and former President Trump, underscores China's intent to reduce reliance on the US dollar amidst a volatile economic relationship.
READ MORESticker Shock: Buying a Car in the US is More Expensive Than Ever
Despite improved production, car prices in the US remain sky-high due to lingering pandemic effects and soaring interest rates. The average new car price hit $48,759 in December 2023, driven by pent-up demand and high loan rates, with used car prices also elevated. While supply chain issues have eased, manufacturers have been slow to replenish inventories, keeping prices inflated. Relief may come as the Fed plans to cut interest rates in 2024, potentially easing the financial burden on car buyers.
READ MORE"Russian and Chinese are brothers forever" - Putin and Xi Challenge Western Dominance
During his visit to Beijing to mark 75 years of diplomatic relations, Russian President Vladimir Putin emphasized a "brothers forever" bond with Chinese President Xi Jinping. Both leaders presented their relationship as a stabilizing force against Western hegemony, specifically targeting US-led alliances and sanctions. Xi urged a peaceful resolution to the Ukraine conflict and the Israeli-Palestinian crisis, condemning Cold War mentality and unilateral power politics. They praised their move to conduct 90% of trade in national currencies, reinforcing their commitment to a multipolar world order and opposing Western-imposed trade restrictions.
READ MORESilver's Surge: Catching Up to Gold with Strong Industrial Demand
Silver is finally catching up to gold, with a year-to-date gain of 17.6% as of April 2024, outpacing gold's 13.4%. This surge is driven by a significant supply deficit for the fourth consecutive year and robust industrial demand from sectors like photovoltaics, vehicle electrification, 5G technology, and AI applications. Despite market recalibration and interest rate expectations, WisdomTree forecasts silver to trade above $32/oz by Q1 2025, reflecting its leveraged relationship with gold and increasing industrial applications. The strong correlation between silver and gold, alongside growing industrial demand, positions silver for continued gains amid economic fluctuations.
READ MOREBitcoin Rallies on Cooling Inflation, Eyes New Highs
Bitcoin surged 6% to $66,300, breaking its stagnation and crossing above the key 50-day moving average, spurred by optimism over cooling U.S. inflation that also lifted the S&P 500 and other stock indices to record highs. This bullish move, alongside potential macroeconomic shifts and inflows to new Bitcoin ETFs, fuels optimism for a return to Bitcoin's March highs. Other cryptocurrencies like Ether, Solana, and memecoins also saw significant gains, indicating a broader market uplift.
READ MORESilver Poised for Major Breakout: Key Levels to Watch
Silver has achieved its first significant upside breakout in three years, surpassing the $27 resistance. Now, all eyes are on the $30 barrier, which if overcome, could propel prices to $45-$55. Technical analysis indicates that silver is in the final stages of a 13-year "cup and handle" formation, setting the stage for a major advance. Investors are advised to monitor for a monthly close above $31, which would signal a robust bullish phase.
READ MORERay Dalio Warns of Possible U.S. Civil War Amid Political Fracturing
The founder of Bridgewater Associates, the world's largest hedge fund, warns of a 35-40% chance of civil war in the U.S., foreseeing potential political fracturing as Americans might move to states aligning with their views, disregarding federal rules they oppose. Highlighting the 2024 elections as crucial for democracy and addressing existential risks like AI and climate change, Dalio suggests investors look to stable foreign markets and even jokingly considers Taylor Swift for president, emphasizing the need for unity and strong leadership.
READ MOREJobless Claims Drop, Indicating Steady Employment Despite Recent Surge
Jobless claims fell by 10,000 to 222,000 last week, suggesting layoffs remain low despite a recent spike tied to school spring breaks in New York. This drop reinforces the trend of minimal layoffs, reflecting a strong labor market that continues to support economic growth, with both the Dow Jones and S&P 500 rising in response.
READ MOREGold Soars Amid Geopolitical Tensions: A Safe-Haven Surge
In April 2024, the World Bank's precious metals price index climbed 9%, with gold reaching a nominal record of $2,331 per troy ounce. This rise is driven by strong demand from emerging markets and developing economies (EMDEs) amidst geopolitical uncertainties, with central banks in China, India, and Turkey leading the charge. While silver and platinum also saw price increases due to industrial demand and supply constraints, sluggish industrial activity in major economies poses a potential downside risk. Overall, gold is expected to maintain its upward trend, supported by robust central bank buying and safe-haven demand.
READ MOREBase Metal Prices Surge Amid Russian Ban and Supply Worries
Base metal prices, including copper and aluminum, are climbing due to the London Metal Exchange's ban on Russian metals and growing concerns over mine supply. Copper nears a two-year high at $10,395 per ton, driven by supply issues like the closure of the Cobre Panama mine and slower production growth. However, analysts caution that these disruptions alone don't fully explain the price surge, and potential risks, such as changes in U.S. dollar strength and Chinese demand, could impact the market.
READ MOREPoorer Americans Bear the Brunt of High Interest Rates
High interest rates are disproportionately impacting low- and moderate-income families, causing more Americans to fall behind on credit card and auto loan payments. As borrowing costs rise, monthly interest expenses have soared, pushing financially strained families closer to the edge. Fed officials have indicated that they expect to keep interest rates at their current level, so these folks won't likely see any relief soon.
READ MOREJamie Dimon's Inflation Alarm: High Rates and Economic Challenges Ahead
JPMorgan CEO Jamie Dimon warns that inflationary forces are poised to keep interest rates elevated longer than investors expect, citing pressures from green initiatives, military spending, and fiscal deficits. Despite stock market optimism from cooling inflation, Dimon cautions that persistent high rates and potential stagflation could stress real estate and leveraged companies, challenging the rosy outlook many currently hold.
READ MOREDow Nears Historic 40,000 Milestone Amid Optimism
U.S. stocks opened higher with the Dow Jones Industrial Average approaching the 40,000 mark, driven by record highs from all major indices following a favorable inflation report. The positive sentiment is bolstered by expectations of potential interest-rate cuts from the Federal Reserve.
READ MOREPowell Signals No Rate Hike Despite Persistent Inflation
Federal Reserve Chair Jerome Powell indicated that the central bank is unlikely to raise interest rates despite persistent inflation, expressing cautious optimism that price pressures will soon ease. Speaking in Amsterdam, Powell emphasized the preference for maintaining the current rate rather than increasing it, though he acknowledged that his confidence in inflation cooling has diminished.
READ MORETreasury Yields Decline Following Lower-Than-Anticipated Inflation Report
U.S. Treasury yields fell on Wednesday after monthly consumer inflation data came in lower than expected. The yield on the 10-year Treasury dropped 10 basis points to 4.346%, while the 2-year Treasury yield decreased by nearly 9 basis points to 4.734%.
READ MORE