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Asia gold: Dealers grapple as sky-high rates erode demand in key hubs

Physical gold demand in Asia dwindled on the back of sky-high prices as consumers abstained from making fresh purchases, forcing dealers to offer deep discounts last seen a year earlier in India and lower premiums in China this week.   “Gold is behaving in a characteristically price elastic way which is to say consumers are [...] READ MORE

Fed Crushes Household Net Interest Income in Break From Past

(Bloomberg) -- When the Federal Reserve raises interest rates, US households — in aggregate — usually get a boost to interest income that outweighs the extra cost of servicing debt. Not this time.   The annual interest bill that Americans pay on mortgages, credit cards and other debt has climbed by almost $420 billion since [...] READ MORE

All eyes on the Federal Reserve: What to know this week

The major US stock indexes have backed off record highs ahead of the Federal Reserve's all-important March meeting.   On Wednesday, that tension will finally be resolved.   The US central bank is set to release its latest monetary policy decision and updated economic projections at 2:00 p.m. ET on Wednesday afternoon, with investors looking [...] READ MORE

A New Buy Signal for Gold

Gold’s technicals improved markedly in the last week of February, when it posted a bullish reversal. Gold’s rally isn’t over yet.   In the Oct. 17, 2023, issue of the Institutional View, I highlighted the metal’s powerful bullish reversal from its support level of $1811 an ounce. After gold hurdled $1940 without breaking below $1900, [...] READ MORE

Silver price pulls back as early Fed rate-cut hopes fade

Silver price corrects after nearing the top of a major range at circa $26.00. The decline could be as a result of fading hopes the Federal Reserve will cut interest rates in the near term. Long-term fundamentals however support, including positive global growth and robust demand.   Silver price (XAG/USD) pulls back at the start [...] READ MORE

Inflation seems stubborn, but people keep spending. What’s going on?

Recent survey data shows consumers’ views of the economy have leveled out after marching higher over the winter. What’s consumers’ relationship with the economy these days? It’s complicated.   As last year drew to a close, inflation appeared to be heading decisively downward, consumer confidence was shooting higher, and many Americans’ wages were finally outpacing [...] READ MORE

China’s young investors are stockpiling gold beans

Gold, the leading commodity, has drawn investors’ attention by reaching a new all-time high of $2,195 per ounce. Now, young Chinese investors are deploying capital to accumulate gold beans and other gold jewelry for wealth protection.   Interestingly, these beans have become very popular among China’s Generation Z, due to their accessibility by weighing one [...] READ MORE

Gold Expert Talks 2024 Outlook, Plus Forecast for Silver, Platinum and Palladium

The start of 2024 has been strong for gold, which has breached US$2,100 per ounce and approached US$2,200.   Could the yellow metal move higher, and could its elevated price generate more interest among investors? What about silver, platinum and palladium — what does 2024 have in store for these precious metals?   John Reade, [...] READ MORE

Goldman Now Sees BOJ Scrapping Negative Interest Rate Tuesday

Goldman Now Sees BOJ Scrapping Negative Interest Rate Tuesday (Bloomberg) -- Goldman Sachs Group Inc. now expects the Bank of Japan will raise interest rates for the first time since 2007 at Tuesday’s meeting, after stronger wage outcomes and a number of news articles over recent days suggested a move is afoot.   “These developments [...] READ MORE