Gold and Silver Prices Surge as US Dollar Weakens

Dec. 28, 2021

Gold and Silver

Source: Pixabay

The US dollar fell today as oil prices spike and the Omicron strain threatens a prolonged economic economy. The Japanese Yen, considered a safe-haven currency, hit a one-month low as investors ditch the currency for U.S. stock, precious metals, and cryptocurrency. 

Oil

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As inflation and COVID-19 government restrictions linger, oil prices have jumped – creating a riskier environment for holding dollars. Gold and silver prices have reacted positively to weakened fiat currencies, with gold hitting a 5-week high and silver touching a four-month peak. 

Gold increased 0.15% to $1820.50 per ounce. Silver grew 0.15% to $23.23 per ounce. Platinum jumped 1.65% to $1,005.50 per ounce, while Palladium rose 1.94% to $2038.00 per ounce. Bitcoin fell 1.43% to $49,039.20.

Inflation Outpaces Household Income Growth in November

Dec. 27, 2021

Household income

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The Bureau of Economic Analysis recently released its Personal Income and Outlays (PIO) data for the month of November. The information reported allows economists to get a better picture of how the economy is affecting individuals and families. According to the recent PIO data, spending grew to 0.6% while household incomes increased at a much slower rate than expected: Just 0.4%. Economists view these numbers as troubling because rising prices are outpacing family incomes, leading consumers to have to use more credit to make ends meet.

Economic advisors worry that if debt continues to increase at the current rate, a recession might come sooner than expected. Many investors and financial institutions continue their gold buying spree in response to the weakened dollar and continuous subpar economic reports.

Gold increased 0.09% to $1818.10 per ounce. Silver grew 0.48% to $23.11 per ounce. Platinum fell 1.44% to $975.50 per ounce, while Palladium rose 2.33% to $2018.00 per ounce. Bitcoin jumped 1.43% to $51,526.40.

MINEXX Delivers First Blockchain Tracked Kilo of Gold From West Africa

Dec. 23, 2021

Blockchain

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MINEXX, a supply chain facilitator, exported its first supply of gold using its blockchain technology. Tracking the gold from the source – the West African country of Burkina Faso, marks a major milestone in mining supply-chain transparency; And this technology promises to provide traceability and trust throughout the minerals industry at large. MINEXX believes that such practices will enable governments, financiers, banks, logistics companies, and buyers to interact confidently with the mining sector.

Blockchain Tracking

Source: Pixabay

Burkina Faso produces over 34 tons of gold a year, but only 300 kilos of the precious metal was tracked in 2019 – leaving nearly 33 tons unaccounted for. Such practices strip the developing country of needed financial resources, such as tax revenue and profit reinvestment. MINEXX believes that its blockchain supply chain system will help the West African nation to better track its gold exports and minimize loss.

Buy Gold

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Gold increased 0.08% to $1813.00 per ounce. Silver grew 0.04% to $22.94 per ounce. Platinum fell 0.1% to $980.70 per ounce, while Palladium rose 0.77% to $1926.50 per ounce. Bitcoin fell 0.15% to $48,880.90.

Federal Reserve Adds $92.1 Billion to Financial Statement

Prompting the Question – Is the Bank Serious About Controlling Inflation? 

Dec. 21, 2021

Dollar devaluation

Source: Pixabay

For the week of Dec. 8 and Dec.15, the Federal Reserve added an extra $92.1 billion to its $8 trillion balance sheet. This move worried investors, who are growing increasingly concerned that the central bank is not doing enough to control inflation. The Fed recently said the bank would taper bond buybacks to help cut back the printing of the greenback. However, adding $92.1 billion opposes the claim of cutting back on printing money. This action may cause serious consequences relating to the country’s economic recovery. 

Balance Sheet

Source: Pixabay

The constant frequency of printing money out of thin air is hurting the dollar’s value. As of this morning, the dollar index was last recorded at 96.513, losing ground to both the yen and the euro. As a result of the Fed’s current monetary actions, many sound investors continue to purchase gold as a hedge to rising prices in record numbers.

Gold

Source: Pixabay

Gold jumped 0.08% to $1799.50 per ounce. Silver grew 1.28% to $22.68 per ounce. Platinum decreased 0.21% to $949.10 per ounce, while Palladium rose 3.2% to $1837.50 per ounce. Bitcoin increased 3.59% to $48,609.

Omicron Infection Rate Threatens Economic Recovery

Dec. 20, 2022

Omicron

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Financial markets have sunk due to fears that governments will impose COVID-19 related government shutdowns. Investors fear that drastic government measures to curb COVID-19 will hurt economic growth and exacerbate inflation. Oil, bond yields, and U.S. stocks have fallen as uncertainty persists. Gold prices also dipped, as global selloffs spiked overnight.

Shutdowns

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Several countries have set new restrictions to curb the omicron variant. The Netherlands has implemented bans on nonessential shopping and closed public dining. Greece, Italy, and Portugal have declared mandatory testing requirements for all visitors. In the US, New York City shut down Broadway shows and is set to announce new restrictions soon.

Gold dropped 0.12% to $1802.20 per ounce. Silver fell 0.36% to $22.38 per ounce. Platinum decreased 1.28% to $939.40 per ounce, while Palladium sank 2.91% to $1762.00 per ounce. Bitcoin fell 2.1% to $46,145.27.

Russians Bullish on Gold? Meanwhile, the Bank of England Raises Interest Rates

Dec. 17, 2021

Russian Gold

Source: Pixabay

According to recent reports, Russians bought four tons of gold in the last nine months, which equates to an 8% increase year-over-year. The gold buying frenzy is gaining steam internationally, with folks in the U.S. purchasing 91 tons – a 79% increase from the previous year. China and India also saw spikes in gold buying, with an increase of 54% and 24% respectively.

Russian Gold Purchases

Source: Pixabay

Russians continue to view gold as a sound investment, despite paying the highest Value-Added Tax (VAT) in the world. The Russian VAT sits at 20% and has made it difficult for many Russians to diversify their portfolios. To rectify this issue, the Russian government has hinted at removing the VAT for gold bullion purchases as soon as 2022. If the government removes the VAT on precious metals, bullion sales are expected to skyrocket, leading many to believe prices will move up along with it.

British flag

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The Bank of England, also trying to curtail inflation, announced Thursday it will implement higher interest rates. The central bank committee members voted to increase the interest rate from 01% to 0.25%. The move helped the sterling gain strength against the dollar. Gold and silver also reacted to interest rate hikes. As central banks all over the world move to increase rates, many investors continue to dump fiat currencies for precious metals. 

Gold Coins

Source: Pixabay

Gold rose 0.37% to $1814.10 per ounce. Silver grew 0.27% to $22.66 per ounce. Platinum increased 0.11% to $952.80 per ounce, while Palladium spiked 3.89% to $1829.00 per ounce. Bitcoin fell 3.49% to $46,247.27.

Gold and Silver Prices Rebound After Fed Announcement Fails to Diminish Inflation Fears

Dec. 16, 2021

GOLD AND SILVER

Source: Pixabay

Precious metal prices rose significantly right after the Fed announced interest rates will remain unchanged. The Fed asserted its belief that while inflation will likely persist throughout 2022, there is no need for immediate rate adjustments. The central bank said they will raise interest rates three times in 2022 but exact dates are still unknown. The bond buyback program is set to end in March.

Dovish Approach

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Many investors still believe the Fed is taking a dovish approach to inflation, and that the central bank’s new policy is too weak to control it. Even with tapering efforts and potential interest rate increases, many central banks around the world view the dollar as a liability and are exchanging greenbacks for gold bars in extremely high numbers.

SPOT

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Gold rose 0.83% to $1799.50 per ounce. Silver grew 1.56% to $22.52 per ounce. Platinum increased 1.97% to $949.00 per ounce, while Palladium spiked 6.84% to $1805.50 per ounce. Bitcoin fell 0.3% to $48,793.10.

Precious Metals Drop as Federal Reserve Signals More Aggressive Monetary Approach; But is it Too Late?

Dec. 15, 2021

The Fed

Source : Photo by Karolina Grabowska from Pexels

The Federal Reserve met Wednesday to discuss its new strategy to manage inflationary pressures on the U.S. economy. Fed policymakers will double the bond taper rate to $30 billion a month and expect to raise interest rates three times for 2022. The Federal Open Market Committee said that the central bank will stop its bond buyback program in March. 

Rates

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Federal Reserve Chair Jerome Powell has admitted that the rate of inflation is longer lasting and higher than previously expected. Powell blames higher consumer prices on supply chain issues and believes that once that issue subsides, the central bank will be able to control inflation rates. However, economists believe the reason for supply chain issues is due to higher demand from easy credit. Many economists believe if the Fed doesn’t move closer to a more hawkish monetary approach, inflation will break all-time highs.

Gold Price

Source: Photo by Michael Steinberg from Pexels

Gold fell 0.22% to $1776.60 per ounce. Silver dropped 0.46% to $21.97 per ounce. Platinum decreased 1.09% to $925.40 per ounce, while Palladium dove 2.94% to $1620.50 per ounce. Bitcoin grew 152.79% to $47,788.29.

Precious Metals Market Drops Ahead of Federal Reserve Meeting

Dec. 14, 2021

Federal Reserve

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Stocks and the precious metals market took a significant hit early Tuesday, in preparation for talks regarding tighter monetary policy measures. The Fed plans on eliminating stimulus-era bond buybacks by March while also shrinking the money supply. The COVID-19 stimulus bill initially provided corporations with cash and credit. Now that these funds are running low, stocks are taking a hit. 

End of Bond Buy Backs

Source: Pixabay

Many investors short gold and silver before Fed meetings that discuss money tightening policies to capitalize on the temporary strengthening of the dollar. Consequently, spot prices dipped overnight. No word as to how high-interest rates will go. Many asset managers are holding on to gold and silver as hedges against inflation.

Silver coins

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Gold dipped 1.14% to $1781.40 per ounce. Silver fell 1.59% to $22.08 per ounce. Platinum dropped 0.65% to $938.70 per ounce, while Palladium decreased 3.08% to $1675.00 per ounce. Bitcoin grew 141.13% to $47,271.18.

Turkish Lira Hits New Low, While Gold Remains Stable

Dec. 13, 2021

Turkish Lira

Source: Pixabay

Turkey’s newly appointed Treasury and Finance Minister stated that the central bank will not raise interest rates, resulting in a huge dip in the Turkish lira. Although the minister believes they can manage inflation without raising rates, the S&P, unfortunately, downgraded the country’s credit rating due to a negative outlook towards Turkey’s financial viability.

Turkey Hyperinflation

Source: Pixabay

Currently, Turkey is facing a wave of economic hardships with inflation reaching 23% and the lira losing over 40% of its value since 2020. Energy prices have also spiked, increasing over 20% for the third quarter of 2021. As breadlines in Istanbul continue to grow every day due to skyrocketing food prices, bakeries are having trouble keeping production rates high and prices low. 

Buy Gold Bars

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Gold rose 0.25% to $1793.90 per ounce. Silver grew 0.43% to $22.40 per ounce. Platinum dropped 1.59% to $943.00 per ounce, while Palladium decreased 1.18% to $1805.50 per ounce. Bitcoin fell 5.9% to $47,189.10.

Inflation Has Spiked at its Fastest Rate Since 1982 – Will it Get Any Worse?

Dec. 10, 2021

High Gas Prices

Source: Pixabay

On Friday, the Labor Department released new inflation figures for the month of November. The current CPI (Consumer Price Index) rate increased to 6.8%, the highest rate the U.S. has seen since 1982. The CPI measures the cost of rent, fuel, health care, and consumer goods, and reflects how inflation continues to cause economic pressure on American families. Higher inflation is cutting away at higher wages, as core products like food and fuel continue to rise to record levels.

Higher grocery prices

Source: Pixabay

Asset managers and economists believe that the current CPI are conservative figures and that rates may actually be higher. Some argue that if CPI was measured at the current rate the same way it was measured in 1982, CPI would actually be around 15%! The question is, will the Fed ramp up stricter tightening of monetary policy, and how soon? Financial analysts believe that inflation will continue to increase at a faster rate than in previous years. This is leading many investors to continue to look into other financial vehicles, like precious metals, cryptocurrency, and the Yen, to protect assets against the weakening U.S. dollar.

Bitcoin Price
Source: Pixabay

Gold rose 0.46% to $1790.90 per ounce. Silver grew 0.91% to $22.29 per ounce. Platinum jumped 0.32% to $954.10 per ounce, while Palladium decreased 2.56% to $1805.50 per ounce. Bitcoin increased 173.41% to $48,065.47.

Silver Plunges as Jobless Claims Drop To Lowest Levels in 52 Years 

Dec. 9, 2021
Silver drop
Source: Pixabay

In the first week of December, weekly jobless claims fell to 184,000. Due to this positive report, silver took a significant dive as the dollar grew stronger. However, some financial analysts are still skeptical about an improving job market, as the November payroll report posted lower than expected numbers of just 210,000

Unemployemnt

Source: Pixabay

The emergence of fewer jobless claims combined with descending payroll numbers may signal a slowly vanishing workforce. Precious metals insiders think that the reports actually signal a growing concern for economists around the world. Stagnation in the workforce, a struggling GDP, and higher inflation rates have allowed precious metals to hold significant value, even after positive economic reports signal temporary gains. 

Gold fell 0.49% to $1781.80 per ounce. Silver dropped 1.9% to $22.00 per ounce. Platinum declined 2.09% to $953.10 per ounce, while Palladium decreased 5.52% to $1790.50 per ounce. Bitcoin grew 162.85% to $48,712.27. 

Euro Zone Admits That it Will Struggle to Contain Inflation Rates

Dec. 8, 2021

EU Central Bank

Source: Pixabay

The ECB, European Central Bank,  finds itself under scrutiny pertaining to its current monetary policy. The Euro Zone is facing mounting inflationary pressure and has done little to curtail the devaluation of the Euro. While ECB Vice-President Luis de Guindos previously maintained that inflation was transitory and posed only a moderate risk to the economy, the ECB has since changed its tune admitting to prolonged high inflation rates.

Source: Pixabay

Policymakers voice increasing concerns about the central bank’s stimulus policies, which continue to play a role in steady money printing. Other central banks throughout the Euro Zone have taken matters into their own hands by securing large supplies of gold reserves. Poland and Ireland recently purchased a considerable amount of gold bullion as a way to protect the bank’s viability in case of a financial downturn.

Gold fell 0.06% to $1790.20 per ounce. Silver decreased 0.4% to $22.55 per ounce. Platinum grew 0.32% to $972.20 per ounce, while Palladium rose 0.28% to $1895.00 per ounce. Bitcoin increased by 176.54% to $50,651.53.  

Ireland Joins Gold Buying Frenzy

Dec. 7, 2021
Central Bank of Ireland
Source: Pixabay

Central Banks continue to seek out gold as inflation continues to rise and threaten financial stability around the world. The Central Bank of Ireland is the most recent financial institution to purchase gold, buying 2 tons in the past three months. Ireland’s central bank officials have not commented on reasons for the purchase, but insiders believe that the nation’s central bank is concerned about price increases and the Euro’s devaluation. Last month, the Central Bank of Ireland’s governor mentioned he was “worried” about inflation.

Over 393 tons of global net gold purchases have occurred in 2021 alone. In fact, Central Banks have bought more gold in the first three quarters of 2021 than they did in all of 2020. The gold buying trend amongst central banks throughout the world is signaling to economists that faith in the world reserve currency, the US dollar, has diminished. If the US dollar loses its status as the world reserve currency, inflationary pressures in the US can reach record levels sooner rather than later.

Buy Gold

Source: Pixabay

Gold rose 0.13% to $1788.00 per ounce. Silver decreased 0.02% to $22.51 per ounce. Platinum grew 1.6% to $971.00 per ounce, while Palladium dropped 0.06% to $1884.00 per ounce.

Federal Reserve to Begin QE Tapering

Dec. 6, 2021

Bond Buy Back

Source: Pixabay

Officials from the central bank have suggested they will begin to increase the pace of the $30 billion a month bond tapering policy. Also, talks could begin as early as next week to discuss interest rate hikes. The Federal Reserve’s new tone has allowed the dollar to slow the pace of devaluation.

Though it is unclear as to when interest rates will be increased or how high they will go, some insiders believe the rise will be insignificant at first, then gradually increase over time. Many investors speculate that the rate increase to help control inflation, but will hurt the stock market in the process. As credit tightens, banks are less willing to loan out cash, which contracts the economy’s money supply.

Buy Gold Coins

Source: Pixabay

Gold fell 0.23% to $1787.30 per ounce. Silver dropped 0.98% to $22.45 per ounce. Platinum grew 0.22% to $950.10 per ounce, while Palladium decreased 1.6% to $1823.50 per ounce.

Why is Singapore Building Up its Gold Reserve For First Time in Over 20 Years?

Dec. 3, 2021

Singapore

Source: Pixabay

Recently, the World Gold Council conducted a survey where it found that financial institutions, both private and public, are losing faith in the U.S. dollar. As a result, central banks are dropping dollars for gold. For example, Singapore increased its gold reserves by 20% earlier this year. By the second quarter of 2021, Singapore had added an additional 26.3 tons of gold. This is the first time Singapore has expanded its gold reserves since 2000, and its reserves now hold about 154 tons of the precious metal. The Monetary Authority of Singapore (MAS) believes that investing more in gold will allow the central bank to further diversify its portfolio and remain resilient through financial turmoil.

Purchase Went Under the Radar

The MAS didn’t disclose the amount paid for the bullion, but with current market prices, it is estimated that the central bank invested over $1.5 billion. The transaction was also made under the radar, which is puzzling to economists as to why the central bank waited months to report the gold purchase. Investors believe that the gold purchases by MAS will increase the value of Singapore’s currency, which can affect foreign exchange rates.

Inflation

Source: Pixabay

Why are Central Banks Purchasing So Much Gold?

We have seen an uptick in countries building up their gold reserves since the start of the pandemic. With inflationary pressures currently persisting, governments are preparing for a financial downturn. Poland has also reported plans on purchasing an additional 100 tons of gold. With inflation increasing at alarming rates, gold provides both stability and financial security in times of financial turmoil.

Who Else is Investing in Gold?

Aside from large institutional investors, individuals can also hedge against inflation too. Many people are currently purchasing bullion like the Gold American Eagle. Today, investing in gold has become essential for those who want to protect their assets from an economic collapse. Inflation is devaluing the dollar and causing prices to go up significantly. As a result, both individual and institutional investors continue to ditch the dollar for safer assets.

Gold Bars

Source: Pixabay

Current Spot Prices

Friday’s precious metals spot prices were mixed. Gold grew 0.28% to $1780.70 per ounce. Silver fell 0.13% to $22.44 per ounce. Platinum rose 0.11% to $954.90 per ounce, while Palladium increased 1.81% to $1845.00 per ounce.

Bitcoin Price Falls Below $57,000 in Response to Emergence of Omicron Variant, While Gold Hits Lowest Point in 4 Weeks

Dec. 2, 2021

Bitcoin Drops

Source: Pixabay

Cryptocurrency giant Bitcoin recently fell below $57,000, as speculators ditch the token for dollars in wake of the omicron variant discovery. Gold also felt the effects of omicron’s market disruption, hitting a four-week low. The Fed is responding to the economic shutdown by tapering stimulus bond buybacks. As a result, the dollar grew stronger, while oil, gold, and Bitcoin fell overnight. 

Omicron Variant

Source: Pixabay

The U.S. has imposed new travel restrictions nationwide, and international travelers will now have to provide a negative COVID-19 test 24 hours prior to arrival. Additionally, mask mandates will be extended through March 2022.

Gold fell 1.1% to $1769.60 per ounce. Silver rose 0.04% to $22.52 per ounce. Platinum grew 0.32% to $971.20 per ounce, while Palladium increased 0.48% to $1790.00 per ounce.

OPEC+ to Discuss Oil Output Policy Adjustment in Wake of Omicron Shutdown Threat

Dec. 1, 2021

OPEC

Source: Pixabay

OPEC, the Organization of the Petroleum Exporting Countries, is scheduled to meet Wednesday with member nations to discuss oil output options due to the emergence of the omicron variant. Little is expected to change by way of output, which currently stands at 400,000 barrels per day. OPEC ministers have mentioned that no urgent action is needed in oil markets. 

The threat of international COVID-19 shutdowns in regards to the omicron variant has caused increased fluctuations in the market. Investors fear that more stringent COVID-19 security measures will create increased pressure on the current supply chain crisis. If manufacturing shuts down, demand for oil will decrease. This can create a glut at a time when the US decided to release large amounts of oil reserves. 

Gold Bullion

Source: Pixabay

Gold is reacting positively to recent comments from the Fed, which admitted that the central bank was completely wrong about inflation being transitory. The Fed is currently preparing to accelerate the tapering of stimulus policy. Gold grew 0.78% to $1792.30 per ounce. Silver fell 0.77% to $22.79 per ounce. Platinum fell 1.07% to $966.10 per ounce, while Palladium increased 0.42% to $1780.00 per ounce.

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