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Tag Archives: Key Gold Headlines

The Fed Takes a Weak Swing at Inflation

The Federal Reserve came through with the second rate hike of this tightening cycle, bumping up the Fed Funds rate by 0.5%. It was the biggest interest rate boost by the Fed since 2000. But given the extent of the inflation fight, this hardly seems like a bold, aggressive move. In fact, it was a weak swing that looks more like shadow boxing. And one has to wonder just how long the Fed can stay in the ring.The 50 basis point hike was expected and there was some speculation that the Fed...

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Has the Fed Already Pricked the Housing Bubble?

The Federal Reserve has raised rates once – a mere 25 basis points (with another hike on the table today). So, it’s just getting started, but has it already popped the housing bubble? It sure looks that way. The question is how long will it take for the air to really start coming out.As mortgage rates push up, mortgage applications continue to fall. As of last week, applications were down 17%, and at the lowest level since May 2020 when the economy was shut down for COVID, according to...

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Central Banks Added Nearly 84 Tons of Gold to Reserves in Q1

Despite a number of big sales, global central bank gold demand remained brisk as net holdings increased by 83.8 tons in the first quarter of 2022.That more than doubled the 41.2-ton expansion of central bank gold reserves in the last quarter of 2021 but was 29% lower than the first quarter of last year.The World Gold Council called central bank gold demand “somewhat muted, but nonetheless positive” in a “turbulent quarter marked by geopolitical crises and surging inflation.”Egypt was the...

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Wages Are Up But You’re Worse Off

The Bureau of Economic Analysis released the Personal Income and Outlays data for March last week. Incomes and consumer spending were both up. The data had mainstream analysts crowing about a strong economy and good news for American consumers. But digging into the data reveals a very different picture. Incomes were up 0.5% month-on-month. That seems like a solid gain — until you factor in rising prices. According to the Personal Consumption Expenditure (PCE) index, prices were up 0.9% in...

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Silver News: 2021 Silver Demand Explosion and Technical Innovations

Total global silver demand reached its highest level since 2015 last year, surging 19% to 1.05 billion ounces (Boz). There were increases in every key silver demand category. It was the first time since 1997 that all key sectors rose together.This is one of several silver-related stories in the latest edition of  published by the Silver Institute.Silver demand for industrial applications rose 9% to 508.2 million ounces (Moz) last year, despite logistical challenges relating to COVID-19....

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Gold Demand Surges in First Quarter

Gold demand surged to kick off the year, up 34% year-on-year in the first quarter of 2022.Total demand came in at 1,234 tons in Q1. That was the highest quarterly demand since Q4 2018, according to the World Gold Council’s Gold Demand Trends report. Demand in the first quarter of this year was 19% above the 5-year average.According to the WGC, surging inflation and the Russian invasion of Ukraine were key factors driving demand.The price of gold was up 8% in Q1.Gold inflows into ETFs...

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Silver Demand Hit 6-Year High in 2021; Growth Expected to Continue Despite Headwinds

The Silver Institute has released its  report, providing an overview of what happened in the silver market in 2021 and looking ahead to this year.Even with geopolitical and economic headwinds, the report anticipates further growth in the silver market in 2022.Last year, the global silver market realized growth in every demand category, marking the first time all key sectors rose in tandem since 1997.Total global silver demand hit its highest level since 2015, surging 19% to 1.05 billion...

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Americans Spending More, Getting Less and Borrowing More to Pay for It

American consumers are spending more, getting less, and borrowing more to fund this involuntary spending spree.Retail sales in March were 7% higher than they were in the stimulus-fueled March of 2021, but thanks to inflation, they didn’t get as much bang for their buck.Seasonally adjusted, retail sales were up 0.5% month-on-month in March at $677 billion.As put it, “Stimulus Miracle March 2021 was a very tough month to beat. But Americans did blow by it. What they didn’t do is blow by...

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If the Fed Is Fighting Inflation Why Is the Balance Sheet Still Expanding?

If the Fed is fighting inflation and has ended quantitative easing, why is its balance sheet still going up?In the week ending April 13, the balance sheet grew by $27.9 billion, hitting a new record of $8.965 trillion. This is up about $3 billion from its previous high in March.As Peter Schiff put it in a tweet, “For all the talk of fighting inflation and shirking its balance sheet, the Fed continues creating more inflation and expanding its balance sheet!”At the end of March, it looked...

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More Inflation Pain: Producer Prices Chart Biggest Increase Ever

The mainstream seemed to take the March CPI data as good news. With core CPI coming in below expectations, the narrative is that we’ve probably hit peak inflation. But the producer price data that came out yesterday tells a different story.The Producer Price Index (PPI) was up 1.4% month-on-month. On an annual basis, producer prices rose 11.2%. Both numbers were higher than expected and set all-time records.Stripping out more volatile food and energy prices, the core PPI was up 0.9% from...

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