Gold Surges Past 2400 as June CPI Reveals Declining Inflation

Gold Surges Past $2400 as June CPI Reveals Declining Inflation

The Bureau of Labor Statistics' latest Consumer Price Index (CPI) report, released today, shows a significant decline in inflationary pressures for June. This marks the first decrease in prices since early 2020.

According to the report, “The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent on a seasonally adjusted basis, after being unchanged in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all-items index increased 3.0 percent before seasonal adjustment.”

June's CPI dropped by 0.1%, following May's unchanged reading. This decline brought the annual headline inflation rate to 3%, its lowest in a year and considerably below May's 3.3% year-over-year figure. The results surpassed economists' expectations, as FactSet consensus estimates had predicted a 0.1% monthly increase and a 3.1% annual inflation gain.

This report provides the Federal Reserve with the additional evidence of waning inflation that Chairman Powell emphasized as a necessary component needed to begin cutting interest rates during his recent congressional testimonies. The data suggests that the Fed is getting closer to reaching its goal of bringing inflation to its 2% target.

Skyler Weinand, chief investment officer at Regan Capital, suggests that this favorable CPI report could pave the way for the Federal Reserve to implement interest rate cuts as early as September, with a potential second cut in December, provided inflation continues to trend downward.

Many analysts, including the author, believe that another positive inflation report in August could prompt the Fed to ease its restrictive monetary policy with at least two, possibly three, rate cuts this year. This aligns more closely with the Fed officials' projections from the March FOMC meeting, which anticipated three rate cuts in 2023. The most recent "dot plot," however, had scaled back expectations to one or two cuts.

The impact of the CPI report on market sentiment regarding rate cuts was immediate and significant. The CME's FedWatch tool now forecasts a 92.7% probability of a rate cut at the September FOMC meeting, with an 84.6% chance of a 0.25% cut and an 8.1% likelihood of a 0.50% reduction. Only a 7.3% probability remains for maintaining the current benchmark rate.

The gold market responded positively to this news. Spot gold (Forex) is currently trading at $2,413.92, representing a substantial daily gain of $42.79 or 1.8%. Gold futures for August delivery also saw significant increases, reaching $2,421.90 as of 5:20 PM ET, up $42.20 or 1.77%. The August contract touched an intraday high of $2,430.40.

Kitco Media

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

Gold Futures Rise as Powell Remains Cautious on Rate Cut Timing

Gold Futures Rise as Powell Remains Cautious on Rate Cut Timing

Federal Reserve Chairman Jerome Powell's recent testimony provided little insight into the timing of potential interest rate cuts, leading to a modest gain in gold futures. Powell's remarks, spanning two days of testimony, emphasized the Fed's data-dependent approach and the need for more evidence of sustained inflation reduction before initiating rate cuts.

Powell expressed optimism about the U.S. economy achieving a "soft landing," where inflation targets are met without significantly increasing unemployment. This scenario, once deemed improbable when inflation peaked at a 40-year high in 2022, now appears more feasible. However, Powell remained cautious, stating he was not yet prepared to confirm inflation's sustainable downward trajectory to the Fed's 2% target.

The Chairman's testimony highlighted the Fed's commitment to making decisions based on incoming economic data. While acknowledging inflation's decline from recent highs, Powell emphasized the need for further progress before considering rate cuts. He refrained from providing specifics on the timing or number of potential rate reductions this year.

Investors have now shifted their focus to upcoming inflation reports. The June Consumer Price Index (CPI) report, due Thursday, is expected to show inflation continuing to decline to an annualized rate of 3.1%, down from May's 3.3%. Friday's Producer Price Index (PPI) report is anticipated to reveal a slight increase of 0.2% for June, up from May's 0.1% rise.

Powell's cautious stance and expectations of cooling inflation have contributed to a weakening dollar index. The CME's FedWatch tool indicates a 95.3% probability that the Fed will maintain current interest rates at this month's FOMC meeting. However, there's a 73.3% chance of a rate cut at the September meeting, with a 70% likelihood of a quarter-point reduction and a 3.3% possibility of a half-point cut.

The dollar index dipped 0.11% to 104.994, while gold futures for August delivery rose by $11.80 or 0.50%, reaching $2,379.70. This uptick in gold prices reflects investors' response to Powell's testimony and the anticipated inflation data.

As the market digests Powell's remarks and awaits crucial economic reports, the precious metals sector remains sensitive to shifts in monetary policy expectations and inflation trends. The coming days will be critical in shaping market sentiment and potentially influencing the Fed's future decisions on interest rates.

Kitco Media

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

Global gold ETFs see second consecutive month of inflows North America still lags

Global gold ETFs see second consecutive month of inflows; North America still lags

The gold market is starting to see a turn of fortunes as investment demand picked up in June, according to the latest report from the World Gold Council.

On Tuesday, analysts from the World Gold Council reported that global gold-backed exchange-traded funds saw their second consecutive month of inflows in June. According to the report, global holdings increased by 17.5 tonnes, valued at $1.4 billion last month.

“Inflows were widespread, with all regions seeing positive gains except for North America, which experienced mild losses for a second month. In general, lower yields in key regions and non-dollar currency weaknesses increased gold’s allure to local investors,” the analysts said.


However, even after two months of inflows, the market still has a deep hole to dig out of. The WGC said that year-to-date, global gold ETFs have lost $6.7 billion, their worst H1 since 2013.

European investors continued to lead the way in the gold market. Analysts note that it is not surprising that demand has picked up in the region as central banks, including the Swiss National Bank and the European Central Bank, have started easing interest rates. Even the Bank of England has struck a dovish tone, with economists looking for a rate cut in August.

“Lowering yields were a key contributor to the region’s inflows. Additionally, falling equities and political uncertainties related to elections in the UK and France, which sparked notable inflows there, also pushed up investor interest in gold,” the analysts said.

European-listed funds saw inflows of 17.9 tonnes, valued at $1.42 billion.

However, North American demand continues to drag down the market. The report said that North American ETFs saw outflows of 8.2 tonnes, valued at $573 million.

“The dollar strength and continued equity rally may have drawn investor attention away from gold despite falling Treasury yields,” the analysts said. “Nonetheless, flare-ups in geopolitical risk prompted sporadic inflows, partially offsetting larger outflows during the month.”

Although North American gold demand remains lackluster, analysts note that it can easily turn around if the Federal Reserve starts to ease interest rates. Markets see a roughly 70% chance of a rate cut in September.

Looking at other regions, Asian demand remains a solid pillar within the gold market. Asian-listed funds have seen inflows for the last 16 consecutive months. The region saw inflows of 7.2 tonnes, valued at $560 million.

“Similar to previous months, Asian inflows were mainly driven by China, which added $429 million in the month. Among factors that kept Chinese investor interest in gold elevated, we believe persistent weaknesses in stocks and the property sector, as well as continued depreciation in the RMB, were highly relevant. Japan also witnessed its 16th consecutive monthly inflow in June, primarily supported by a weakening yen,” the analysts said.

Other regions saw inflows of 0.7 tonnes, valued at $37.4 million.

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

German Gov’t Accelerates Sell-Offs

German Gov’t Accelerates Sell-Offs With $900M BTC Unloaded In Just 8 Hours — Deeper Price Pullback Ahead?

By Brenda Ngari – July 8, 2024

The German government cannot stop selling Bitcoin (BTC).

Germany has made a series of transfers in recent hours since ZyCrypto reported that the government had sent $27 million in assets to Coinbase and Bitstamp, bringing the total BTC amount moved by the government over the last 24 hours to a five-figure amount.

The sell-offs come despite crypto-friendly German lawmaker Joana Cotar urging it to “refrain” from liquidating the remaining Bitcoin holdings. Cotar issued her statement to the German government on July 4, stating that the preeminent crypto could help the country diversify its treasury assets and promote innovation while also serving as a hedge against inflation.

Germany’s Biggest Bitcoin Sale

The German government has made waves in the crypto market today with massive transfers.

According to blockchain data platform Arkham Intelligence, the authorities have dramatically ramped up the amount of seized Bitcoin that it is sending to crypto exchanges and market makers, with at least 16,309 BTC (equivalent to over $900 million) transferred on July 8 in the space of just 8 hours.

The latest transfers include $200 million worth of Bitcoin sent to market makers Flow Traders and Cumberland DRW and additional deposits to Coinbase, Bitstamp, and Kraken. Germany has made multiple smaller transfers in recent weeks, but this is the largest single-day string of transfers witnessed thus far. With the deposit of funds to exchanges suggesting sell-offs, the actions of the German government have wreaked havoc on the crypto market.

According to CoinGecko data, Bitcoin’s price fell 3% to as low as $54,320 shortly after the blockchain transactions. Later, the foremost cryptocurrency rebounded slightly, trading at $56,129 as of press time.

Dreaded BTC Sell-Off

The latest transfers leave the wallets of the Eurozone’s biggest economy with just 23,788 BTC (worth $1.33 billion), down from a peak of almost 50,000 BTC ($3.5 billion).

The German Federal Criminal Police Office (BKA) seized 49,857 BTC from the operators of the piracy website in January this year when Bitcoin was valued at around $46K.

The pending coin stockpile suggests further price turbulence if the sell-offs continue. Last week, Tron founder Justin Sun offered to purchase BTC from the German government off-market to minimize the adverse impact on the spot price. At the moment, it remains unclear just how serious the popular crypto founder really was.

DISCLAIMER The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on

Article reposted on Markethive by Jeffrey Sloe

** Loans, secure funding for business projects in the USA and around the world. Learn more about USA & International Financing at Commercial Funding International. **

Tim Moseley

BlackRock Proposes Its New Retirement Plan Using Your Money: How Will This Impact Your Finances? Discover Your Options

BlackRock Proposes Its New Retirement Plan Using Your Money: How Will This Impact Your Finances? Discover Your Options.

In mid-2019, BlackRock demonstrated its prophetic capabilities by forecasting the financial and monetary implications of the pandemic before it had even occurred. Considering the company's stature as the world's largest asset manager, some may argue we should heed its insights. 

Recently, CEO Larry Fink released his yearly correspondence with investors, offering subtle hints about potential future developments and BlackRock's strategies. This article breaks down the key takeaways from the letter, providing insight into what it may imply for individual investors and the market at large. We also explore how you can alleviate concerns and secure your financial future. 

To begin with, Larry Fink's yearly correspondence with investors has a distinct tone from his annual address to corporate leaders. BlackRock holds significant stakes in many of the world's largest corporations. Fink's letter to CEOs served as a guide for corporations, outlining what actions they should take. However, this year's letter has yet to be released.

Similarly, BlackRock's CEO, Larry, writes an annual letter to its investors outlining its key objectives. The letter being discussed today is an overview of this annual communication. Notably, the initial section of Larry's letter is particularly striking, bearing the title “Time to rethink retirement.” It's worth noting that this topic is especially relevant, as numerous countries globally are increasing the retirement age due to fiscal constraints stemming from a shortage of taxpayers to fund pension systems.

Source: BlackRock

The Capital Markets

Inspired by his parents' financial struggles in retirement, Larry founded BlackRock to help others build a comfortable nest egg. In his letter, he highlights the importance of investing in capital markets to achieve this goal. Capital markets encompass a wide range of financial instruments, including stocks, bonds, and private investments, providing opportunities for individuals to grow their wealth over time.

Influential investment firms like BlackRock are expanding their reach into multiple areas, including purchasing single-family residences that are subsequently leased to individuals. This trend has sparked concerns about the escalating cost of housing.

In the second portion of his letter, Larry provides a concise overview of the evolution of capital markets in the United States, highlighting two primary methods of wealth accumulation: saving funds in a bank or investing. He attributes the country's impressive performance since the 2008 economic downturn to the size and complexity of its capital markets. Notably, Larry takes pride in his role as one of the creators of mortgage-backed securities, which were instrumental in causing the 2008 financial crisis.

In hindsight, it's not entirely unexpected given Larry's academic background in political science and business administration, which didn't exactly prepare him to be a market expert. Nevertheless, Larry emphasizes that a crucial lesson learned is that a robust banking system alone is not enough to drive economic growth; a country also needs thriving capital markets. He observes that this realization is gaining traction globally, and Larry shares that he has been engaged in discussions with governments worldwide on this topic.

He details his extensive travels last year, visiting 17 countries where he engaged in discussions with top government officials, including presidents and prime ministers. According to him, these leaders are eager to expand their financial markets, and conveniently, BlackRock is poised to assist without any underlying motives, of course. What's alarming, however, is that Larry discloses that Indian authorities are discontent with the widespread practice of Indians using gold to save and store personal wealth. Instead, they want to see this wealth funneled into the banking system, and Larry is likely keen to see it flow into BlackRock's coffers.

In any case, it implies that governments view gold as a threat. Larry appears to share this viewpoint, pointing out that gold has not performed as well as the Indian market and that investing in gold does not contribute to the Indian economy. So, will we see restrictions on gold in the countries Larry advises, citing economic vulnerability as the reason?

Larry proceeds to uncover BlackRock's ultimate objective. He asserts that investing in capital markets is not just desirable but essential for two key reasons. Firstly, it is the sole means of financing retirement plans, and secondly, it is the only way to develop infrastructure that aligns with environmental, social, and governance (ESG) principles. In essence, this constitutes the endgame.

For those who may not be aware, Environmental, Social, and Governance (ESG) is a concept promoted by influential financial institutions such as BlackRock and major banks like Bank of America. ESG's ultimate goal is to support the United Nations' ambitious sustainable development goals (SDGs), which envision global adoption of dystopian technologies like CBDCs, digital IDs, and smart cities by 2030. 

Retirement And Demographics

In the third section of his letter, Larry raises concerns about how individuals can financially support their retirement, given the increasing life expectancy. By now, you'll know the answer is to give all your money to BlackRock. Case in point, Larry notes a joint venture BlackRock has with an Indian retirement firm that invests in digital infrastructure. In other words, you will own nothing and be happy, and BlackRock will use your retirement savings and investments to make it happen. It appears BlackRock is making big bets on India, presumably because its workforce population will be one of the last to peak sometime around 2050. 

Source: BlackRock

In a surprising turn, Larry shifts the conversation to the United States, likely to address potential concerns about BlackRock's increasing involvement in India. With a hint of irony, Larry acknowledges that the financial difficulties younger generations face directly result from policies implemented by his generation, the Baby Boomers.

As you may have anticipated, BlackRock has devised a solution to rescue the next generation. Following a stark warning that the US Social Security fund will be depleted by 2034 and recommending a delayed retirement age, Larry proposes three methods to address our financial future.

The first approach is to compel employees to allocate a segment of their salaries towards investments in the capital markets, which would be managed by firms such as BlackRock. According to Larry, the U.S. will implement similar legislation next year, mandating companies with 401K plans to automatically register new employees into the program.

This ties into BlackRock's second strategy for securing our financial futures: exerting influence over how we utilize our retirement funds. In essence, BlackRock aims to manage the savings you've set aside for your golden years, effectively gaining control over how you spend them during retirement. 

The silver lining is that BlackRock's proposal is a product with no legislative backing or hints of a looming obligation. However, the concern is that a similar law could be proposed in the future. If baby boomers were to withdraw too much of their retirement funds, the entire capital markets system could collapse, a risk highlighted by prominent macroeconomic experts like Mike Green.

Larry refers to BlackRock's plan as a “revolution in retirement” and believes it will dispel fear and instill hope. Earlier in his letter, Larry implied that the third way to fix our financial future is to fix the demographic problem, meaning having more kids or at least increasing immigration. But no, all Larry said was what was mentioned a few moments ago: raise the retirement age. 

Larry’s stance might be related to his belief that machines can replace humans. During a recent World Economic Forum discussion panel, he explicitly stated, “Countries will rapidly develop robotics and AI and technology, and the social problems that one will have in substituting humans for machines are going to be far easier in those countries that have declining populations.” 

It would seem that BlackRock's interests align with declining populations. This is unsurprising, given that a shrinking population is ESG-friendly: fewer people mean fewer emissions. If this notion disturbs you, Larry doesn't seem to understand why. Per his letter, “There's so much anger and division, and I often struggle to wrap my head around it.” Perhaps he needs to reflect on his role in the matter. 

Source: SigmaEarth

Infrastructure And ESG

In the fourth part of his letter, Larry discusses the ESG-aligned infrastructure that BlackRock aims to develop using your retirement funds. He states, "The future of infrastructure is a public-private partnership,” meaning BlackRock is partnering with your government. Larry asserts that this partnership is crucial for financing infrastructure projects as governments are burdened with significant debt and cannot undertake it independently.

He points out that the US government's debt is increasing rapidly and that fewer and fewer governments are buying US Government debt. Interestingly, a lack of financial support was the main reason why the precursors to the SDGs, the Millennium Development Goals (MDGs), ultimately failed.

Larry then goes one step further, saying, “More leaders should pay attention to America's snowballing debt. There's a bad scenario where the American economy starts to look like Japan's in the late 1990s and early 2000s when debt exceeded GDP and led to periods of austerity and stagnation.” 

Larry argues that there is an alternative solution to addressing the national debt beyond cutting taxes and spending. He suggests that if the US economy grows significantly, it could enable the US to repay its debt. However, he fails to note that this growth will simultaneously cause inflation

To drive growth in the U.S., Larry suggests focusing on energy investments, particularly in unreliable forms of electricity. Ironically, the current high costs directly result from inadequate investment in dependable energy sources, which can be attributed to the emphasis on ESG considerations. Asset managers like BlackRock have played a significant role in this underinvestment, exacerbating the issue.

Larry's admission that oil and gas will remain essential for “a number of years” is a gross understatement, considering they supply half of the world's energy needs. Surprisingly, Larry praises Germany as a model for effective energy policy despite the country shutting down its final nuclear power plant last year. This decision coincided with Germany's struggling economy, which faced challenges from high energy expenses due to sanctions and renewable energy sources.

Larry highlights Texas as an example of a state struggling with energy issues, attributing the problem to growing demand rather than its shift towards unpredictable renewable energy sources. Ironically, he discloses that BlackRock is investing in initiatives that further increase dependence on these intermittent sources. Moreover, Larry outlines a series of investments BlackRock is making to facilitate a “fair energy transition,” which is primarily focused on maintaining warm homes during winter while seemingly downplaying the importance of other energy-related concerns.

Luckily, Larry discloses that BlackRock is allocating more resources to dependable energy sources than to less dependable ones. This is because the company's clients are driving this demand. It's worth noting that several individuals and institutions had previously threatened to withdraw their investments due to BlackRock's ESG policies, and some actually followed through on those threats.

However, this is just the tip of the iceberg regarding BlackRock's double standards. Larry asserts that renewable energy sources reduce a nation's reliance on foreign powers, but this claim is misleading. The reality is quite the opposite. China supplies 90% of the necessary materials for these renewable energy sources, so every green energy infrastructure depends on the Chinese Communist Party (CCP). This raises questions about who truly holds influence within BlackRock.

BlackRock’s Plans

Larry outlines BlackRock's strategic trajectory in his letter, detailing the company's partnership with Global Infrastructure Partners (GIP), a leading international infrastructure investment firm with which he appears to have personal connections. Additionally, Larry intends to expand his travels and engage with more leaders globally, promoting BlackRock's strategy as the optimal choice. While he doesn't explicitly state it, his comments imply that BlackRock's growth in assets under management is attributed to foreign sources, thanks to his lobbying efforts.

If you weren't aware, BlackRock's portfolio has surpassed a staggering $10 trillion in value and is still growing. To offer a sense of scale, this would make BlackRock the third-largest country by GDP. Furthermore, this immense wealth would be sufficient to acquire nearly half of the US equity market, although BlackRock already wields significant control through its substantial voting shares. According to Larry, the company plans to maintain its investment strategy, which includes early-stage ventures.

Looking ahead, Larry emphasizes that “Our strategy remains centered on growing Aladdin, ETFs, and private markets, keeping alpha at the heart of BlackRock, leading in sustainable investing, and advising clients on their whole portfolio.” For those who may not know, Aladdin is BlackRock's proprietary trading platform.

Larry mentioned that moving forward, BlackRock's primary focus on the private market will be ESG infrastructure. In terms of ETFs, they plan to increase ETF adoption further and launch new ones, particularly highlighting Bitcoin ETFs. This shift hints at the possibility of more crypto ETFs in the pipeline, including those for Ethereum. Additionally, Larry highlighted that BlackRock will increasingly prioritize fixed income, specifically government bonds, now that interest rates are “near long-term averages.”

Source: BlackRock

BlackRock's move is noteworthy as it indicates that the company anticipates that interest rates will remain stable, which goes against the views of those who predict rate decreases. Following a boastful mention of BlackRock's impressive 90-fold increase in stock value over the past 25 years, Larry highlights the company's acquisition of GIP, an ESG infrastructure firm, and the subsequent appointment of its CEO, who happens to be a friend of Larry's, to BlackRock's board. Who needs crony capitalism when you've got nepotism disguised as ESG?

In all seriousness, Larry concludes by asserting that BlackRock is merely a tiny component of a broader, global phenomenon that he believes is improving the lives of ordinary individuals. However, in reality, this phenomenon primarily enriches the wealthy elite. Larry credits the capital markets and their investors for making this possible, but he fails to mention that a staggering 93% of all stocks are concentrated in the hands of the top 10% of the population.

What Does All This Mean for The Markets And You?

What implications does this have for you and the financial markets? It is crucial to understand that these are distinct entities. One viewpoint is that BlackRock's decision-makers seem alarmingly out of touch with the real world, which is a daunting prospect considering the vast amount of assets they control. The fact that they're holding up Germany as a model for other countries to emulate in terms of energy policy is either a staggering display of ignorance or a cynical ploy, with most people leaning towards the latter interpretation.

Regardless of the circumstances, the outcome remains consistent: wealth becomes increasingly concentrated among the affluent, while the disadvantaged fall further behind. This phenomenon frequently occurs in economies with centralized planning, and BlackRock's most significant mistake stems from this approach. The asset manager assumes that centralized control is the sole means of addressing issues and fostering prosperity to the extent that it collaborates with governments, introduces initiatives such as CBDCs, and limits access to gold, all in the name of economic growth.

This action is not a method for addressing issues and fostering economic growth. Instead, it seems more like a strategy to avoid the collapse of a financial Ponzi scheme. Despite their shortcomings, governments have significantly less debt than banks and asset managers.

Globally, there is a staggering $315 trillion of outstanding debt. Still, the liabilities stemming from complex financial instruments held by banks and asset managers are projected to be exponentially higher, reaching the quadrillions. These instruments are contingent upon the appreciation of underlying assets; if these assets fail to increase in value, the entire derivatives debt structure will collapse, triggering a catastrophic financial meltdown.

Upon closer examination, BlackRock's proposals all boil down to a single premise: entrusting them with your money and allowing them complete discretion over managing it, including determining when it will be returned to you.  The ESG narrative may merely be a ruse to convince people that by handing over their money to BlackRock, they'll be contributing to the greater good. What's particularly unsettling is that Larry appears to have successfully duped many in the US and is now shifting his focus to international markets, where numerous countries eagerly seek investment opportunities, making them vulnerable to his influence.

It's clear that BlackRock's assets under management (AUM) increase whenever Larry travels, and it’s not an exaggeration to label it as deceitful when it leads to insufficient energy infrastructure that financially benefits BlackRock and other venture capitalists. The collapse of Sri Lanka, which previously held the highest ESG score, serves as a cautionary tale. Despite this, BlackRock continues pushing forward with its investments, making the average person worse off. 

This has significant implications for the market landscape. Essentially, poorly conceived ventures will continue to attract excessive investment if they align with ESG criteria. What's particularly irritating is that BlackRock is channeling its ESG investments into startup ventures and private companies, making it challenging for us regular folk as investors to tap into these lucrative opportunities, likely by intentional design.

One approach to capitalizing on BlackRock's ESG fixation may lie in cryptocurrency. A similar trend has emerged in the AI sector, where many companies remain privately held, limiting investment opportunities for the general public. As a result, AI-related cryptocurrencies have become a viable alternative, serving as indirect investment vehicles for those seeking to benefit from AI's growth and development.

It's worth noting that a specific area of crypto, known as ReFi or Regenerative Finance, has garnered attention. While some crypto experts have raised doubts about the legitimacy of certain projects within this niche, they align with ESG criteria. If BlackRock's ESG trend experiences a resurgence, many of these projects could rapidly gain traction. 

Final Thoughts

The reality is that primary energy is scarce due to inadequate investment from BlackRock and similar entities, and the emerging alternatives, except nuclear power, are insufficient to bridge the gap. As this reality becomes apparent, BlackRock will likely face significant investment withdrawals unless its strategy is altered. However, with Larry at the helm, a change in direction appears unlikely, making divestment a probable outcome.

Hopefully, we won't witness another asset manager arising, proclaiming to be the solution to all of humanity's problems. The truth is that most people simply want to be left alone to live their lives without interference. The idea of being "saved” by a grandiose plan or product is unrealistic and ignores the diversity of individual preferences and values. Instead of imposing a one-size-fits-all solution, providing people with the tools and resources they need to live well and make their own choices is more productive.

A Perfect Opportunity For Individual Investors Is Here

Standing out as a beacon of hope against the forces of globalization and corruption is Markethive, a pioneering platform that has been empowering entrepreneurs for years. As a trailblazer in the marketing sphere, it has conceptualized and executed innovative, high-impact strategies tailored to its users. With its sights set on the future, Markethive has transformed into a groundbreaking decentralized ecosystem rooted in blockchain technology and fueled by its cryptocurrency, Hivecoin. Additionally, it aims to expand its offerings by establishing a decentralized crypto exchange. (DEX)

Markethive is actively seeking individual investors to support its mission and vision of becoming a prominent decentralized social media, marketing, and broadcasting ecosystem. According to crypto experts, this is an upcoming crypto narrative in the next bull market. This is significant as it will pay huge dividends in the mid-to-long term for everyone, particularly those participating in the Entrepreneur One Upgrade, which includes the Incentized Loan program. By focusing on its path and purpose, Markethive remains dedicated to providing economic empowerment and identity to all, especially those lacking it.

Markethive is a grassroots project built for the people, by the people, and is of the people that empowers individuals by allowing them to become stakeholders. Markethive is revolutionizing how we approach social media, broadcasting, inbound marketing, and eCommerce, providing a comprehensive system for long-term success, financial autonomy, and a strong community bond. So take advantage of this chance to claim your spot in this pioneering network, where you can positively impact the world and build a lasting legacy of wealth.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


Editor and Chief Markethive: Deb Williams. (Australia) I thrive on progress and champion freedom of speech.  I embrace "Change" with a passion, and my purpose in life is to enlighten people to accept and move forward with enthusiasm. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.





Tim Moseley

Gold Prices Decline Amid Signs of Easing Inflation

Gold Prices Decline Amid Signs of Easing Inflation

Gold futures experienced a sharp decline on Monday, shedding $34 to settle at $2,363.50 for the most active August contract. This drop came despite recent economic indicators suggesting a cooling inflation rate and a contracting U.S. economy—factors that typically support gold prices.

The week ahead promises to be eventful for financial markets, with several key events on the horizon. Federal Reserve Chairman Jerome Powell is set to testify before the House and Senate, beginning Tuesday and concluding Wednesday. His testimony is expected to echo his recent assessment of the U.S. economy and inflation, presented last week at the European Central Bank forum in Portugal.

Powell's recent comments have been interpreted as having a dovish bias. He acknowledged significant progress in combating inflation, noting that the Fed's preferred measure, Core PCE, has "tumbled to 2.6% from 5.6% in mid-2022," which he called "really significant progress."

The Chairman will likely incorporate last week's jobs report in his testimony, which showed a substantial contraction in job growth from 272,000 in May to 206,000 in June. This slowdown in job creation aligns with the Fed's efforts to cool the economy and curb inflation.

Looking ahead, the Bureau of Labor Statistics is scheduled to release the June Consumer Price Index (CPI) report on Thursday, followed by the Producer Price Index on Friday. The Federal Reserve Bank of New York's estimates for the CPI report suggest a continued weakening of consumer prices, with consensus predictions indicating inflation declined to 3.1% year-over-year in June, down from 3.3% in May.

Despite these positive signs for inflation control, gold prices fell sharply on Monday. The dollar's strength played only a minor role in this decline, with the dollar index gaining a modest 0.11% to reach 104.987.

The disconnect between gold's price movement and the current economic backdrop is puzzling. Typically, signs of economic contraction and cooling inflation would support gold prices. One possible explanation for the sell-off is profit-taking by traders capitalizing on recent gains.

As market participants await Chairman Powell's testimony and the upcoming inflation reports, the gold market's reaction to these events will be closely watched. The interplay between economic data, Federal Reserve policy, and precious metal prices continues to evolve, presenting both challenges and opportunities for investors navigating these complex market dynamics.

Kitco Media

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

Gold investors eye 2400 as market sees fewer barriers to the Fed’s easing cycle

Gold investors eye $2,400 as market sees fewer barriers to the Fed’s easing cycle

Gold investors eye $2,400 as market sees fewer barriers to the Fed’s easing cycle teaser image

The gold market is ending the shortened holiday trading week with some fireworks as prices test resistance around $2,400 an ounce.

Disappointing economic data, including slowing momentum in the U.S. labor market, is raising market expectations that the Federal Reserve will lower interest rates in September. According to the CME FedWatch Tool, markets see a nearly 80% chance of a rate cut after the summer break.

Rising expectations for the start of a new easing cycle have pushed the U.S. dollar index to a three-week low and bond yields to a four-week high, which is providing a tailwind for gold as prices trade at a four-week high.

At the same time, silver prices have catapulted above $31 an ounce and are also trading at a four-week high.

August gold futures last traded at $2,399.60 an ounce, up more than 1% on the day, and up more than 2.5% since last Friday. September silver futures last traded at $31.685 an ounce, up 2.7% on the day and up more than 7% for the week.

The precious metals' latest momentum drive came after disappointing June employment data. Friday, the Bureau of Labor Statistics said that the U.S. economy created 206,000 jobs last month, beating expectations.

However, the unemployment rate increased to 4.1%, from May’s reading of 4.0%; economists were expecting to see an unchanged reading.

The report also revised April and May employment numbers lower by more than 100,000 jobs.

Ricardo Evangelista, Technical Analyst at ActivTrades, said that he would not be surprised if gold pushed to $2,400 an ounce next week.

“As predicted, today’s release of US employment data confirmed that the American labor market continues to cool down, albeit not in a pronounced way, but still enough to favor the case of Fed doves,” he said in a comment to Kitco News. “In the first half of the year the resilience of the US economy created headroom for the Federal Reserve to keep rates high for longer, so signs of a cool-down are likely to drive a softer US dollar, as well as lower treasury yields, in a dynamic that supports the price of bullion.

Ole Hansen, Head of Commodity Strategy at Saxo Bank, said it might be a little premature to call gold’s consolidation period over, but he remains optimistic that prices will eventually move higher.

“I would be a bit surprised to see the market go higher already, but then again, the recent correction was very shallow, indicating either strong underlying demand at lower prices or simply that already established longs saw no reason to reduce their exposure,” he said.

With the U.S. economy slowing down, the biggest risk for the gold market remains inflation, which will be critical data on next week’s calendar. However, many analysts note that even this risk is limited as slower growth will lead to easing price pressures.

Jonathan Petersen, Senior Markets Economist at Capital Economics, said in a note on Friday that he expects to see further weakness in the U.S. dollar as inflation pressures start to ease. This environment could continue to support gold prices.

“Next week’s inflation data out of the US is likely to reinforce that rate hikes from the Fed are off the table and no longer an upside risk for the dollar. Instead, the key emerging risk for the dollar now seems to be a weakening economy pushing Treasury yields even lower than we expect, even if it might benefit from a short-lived “safe-haven” bid if “risky” assets falter,” Peterson wrote.

Economists at TD Securities also do not see inflation stopping the Federal Reserve from cutting rates in September.

“While we still think that the Fed's decision to first ease mostly hinges on inflation outcomes, the ongoing softish signals stemming from labor market conditions and consumer spending suggest the Fed is likely to start considering its employment mandate more seriously in coming months,” the analysts said in a note Friday. “We remain optimistic that the Fed will first ease rates at its September FOMC meeting as we look for core PCE inflation to gradually moderate by then to a monthly pace that is consistent with a return to the inflation target.”

Along with Thursday’s Consumer Price Index, markets will be interested to hear what Federal Reserve Chair Jerome Powell will say during his two days of testimony before Congress next week.


Economic data to watch next week:

Tuesday: Powell testified before the Senate Banking Committee

Wednesday: Powell testifies before the House Financial Services Committee

Thursday: US CPI, weekly jobless claims

Friday: US PPI, Preliminary University of Michigan Consumer Sentiment

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

Wall Street sees green lights for gold next week Main Street jumps back on the bullish bandwagon

Wall Street sees green lights for gold next week; Main Street jumps back on the bullish bandwagon

Gold finally shook itself out of its summer doldrums this week, as weak employment data helped the yellow metal rocket out of its recent holding pattern as it once again approached the $2400 price level.

Spot gold opened the week trading at $2,326.72 per ounce, remaining within a $15 range of that level on Monday and Tuesday. Then, Wednesday brought a raft of economic data and news events, with ADP employment, weekly jobless claims, and the ISM services PMI all released in the morning ahead of the July 4th Independence Day holiday in the United States, along with the minutes from the June FOMC meeting in the afternoon.

The data suggested a weakening jobs market in the United States, and the Fed’s minutes showed little inclination to raise rates. This combination helped to propel gold from flat on the week to its then-high of $2,363.77 shortly after 10:30 am EDT.

The yellow metal trended within a few dollars of its new high through the Independence Day holiday. Then, traders returned on Friday morning to receive definitive confirmation of what the week's earlier data had told them: employment, as per the non-farm payrolls report for June, was indeed faltering, with revisions subtracting over 100,000 jobs from the prior two months, while the unemployment rate ticked up unexpectedly to 4.1%.

This was all precious metals traders needed to see, and they proceeded to propel gold from $2,367 per ounce in the minutes before the release to fresh weekly highs above $2,390 by early afternoon.

At the time of writing, spot gold continues to trade at its highest levels in over a month, and within a few dollars of $2,400 per ounce.

The latest Kitco News Weekly Gold Survey shows virtually all industry experts seeing green for gold prices next week, while retail sentiment has also turned solidly positive once again.

“I like gold higher next week on lower interest rates and anticipation of a weaker US dollar,” said Marc Chandler, Managing Director at Bannockburn Global Forex. “A small shelf is near $2350. The early June high was near $2388, and that may be the initial target on the way to test the air above $2400.”

“Momentum indicators are favorable, and the five-day moving average crossed back above the 20-day average,” Chandler added.

Darin Newsom, Senior Market Analyst at, also sees further gains in gold’s near-term future. “August gold is nearing a possible end to its short-term uptrend, though early Friday morning finds it still has time and space up to the next target of $2,390.80,” he said. “While the intermediate-term trend remains down on the contract’s weekly chart, a higher close this week would be the second consecutive, setting the stage for a higher weekly close next week before resuming the downtrend.”

Mark Leibovit, publisher of the VR Metals/Resource Letter, was the lone voice of dissent this week. “Keeping my inverse index hedges on,” he warned. “Risk in gold in the weeks (possibly months) back to 2000 area.”

Analysts at CPM Group said in a note on Friday that their recommendation is to buy, with an initial target of $2,410.

“Gold prices could move higher in the next couple of weeks before potentially retreating,” they wrote. “There is building support for prices from the political environment in the U.S., Europe, the Middle East, and from many other parts of the world. There appears to be rising concern about President Biden’s ability to be reelected and, if reelected, manage the duties of the President. This rising uncertainty is supportive of gold prices. As the Democratic Party moves to find a replacement candidate would elevate uncertainties and concerns among investors, likely to be reflected in gold purchases.”

“Economically, the world continues to fare well, but the slowing down in economic output in many countries and regions is creating an underpinning of concern about economic trends in the near future,” they added. “Additionally, there are some rising expectations in financial markets that interest rates could move lower in the months ahead. Inflation has cooled and unemployment has risen only slightly.”

The analysts noted that gold prices have traded between $2,285.20 and $2,448.80 since early April, which has created firmer support and resistance levels. “The length of time that gold has traded within this range perhaps makes it more difficult for prices to break out,” they said. “Technical trading suggests a continuation of trading in this range until there is a catalyst to move prices outside of this range.”

“Prices are in an uptrend now, likely to test resistance levels before easing thereafter,” they concluded. “The seasonal weakness that typically takes hold of markets around this time of year appears to be on hold for the moment.”

This week, 12 Wall Street analysts participated in the Kitco News Gold Survey, and the overwhelming majority see green lights for the yellow metal. Ten experts, representing 83, expect to see gold prices climb higher next week, while one analyst, or 8%, predicts a price decline, and one other saw gold trending sideways in the week ahead.

Meanwhile, 164 votes were cast in Kitco’s online poll, showing Main Street investors walking on the sunny side of the street again. 108 retail traders, or 66%, look for gold prices to rise next week. Another 26, or 16%, expected the yellow metal to trade lower, while 30 respondents, representing the remaining 18%, saw prices trading sideways during the week ahead.

The Federal Reserve remains in the spotlight next week, with Fed chair Jerome Powell testifying before the Senate Banking Committee on Tuesday, and then the House Financial Services Committee on Wednesday.

Markets will also be paying close attention to U.S. CPI for June along with weekly jobless claims on Thursday, followed by the Friday release of U.S. PPI for June, followed by the preliminary University of Michigan consumer sentiment survey.

Adam Button, head of currency strategy at, said the political environment is providing a unique bid for gold prices. “We are likely living through one of the all-time great moments in U.S. politics,” Button said. “It takes a great deal to move gold on U.S. politics, but Biden dropping out would do it.”

Colin Cieszynski, Chief Market Strategist at SIA Wealth Management, said he wasn’t so sure that the weak jobs data had increased the likelihood of a Fed cut, but weakness among other asset classes was providing renewed bullish momentum for gold prices.

Cieszynski agreed that there were no surprises for markets in the June minutes. “The Fed was pretty clear when it came out with its forecasts that they're only cutting rates once this year, maybe before the election, maybe after, and that there's a lot of inflation still kicking around out there,” he said. “That hasn't gone away. Today's employment numbers were very stagflationary because the second you looked under the hood of the jobs data, it wasn't very good. The last month was revised down more than this month beat by, and wages and hourly earnings didn't go down, so there's really no reason to think that there's any change here.”

“The Fed is still on hold,” he added. “They only seem to talk dovish at all just to prop up the market, and otherwise, they're stuck.”

Cieszynski said that based on gold’s reaction on Friday, he thinks markets are dialing down the chances of further rate hikes, but they may be premature. “I think at this point it's just working down the odds of a rate hike,” he said. “I think there's just more conviction that even though the Fed wants to leave the door open to a rate hike to scare people, realistically they're probably not going to raise rates. They may not cut anymore. But it depends, right? If inflation starts to take off, then they may have to raise rates. It's very mixed here.

Cieszynski believes the biggest booster of gold this week was Bitcoin’s decline. “Bitcoin is just getting absolutely smoked again today, and I think we're starting to see some of that money coming back into gold and silver,” he said. “I consider them [both] alternative currencies, and when people are feeling aggressive and want to take on risk, they go charging off and buy Bitcoin. Now, I know there's also an event around this, why Bitcoin's getting depressed, but it was rolling over anyways, and when people are starting to feel more concerned, they go back into gold. I think that's what we're starting to see a little bit of here.”

Cieszynski also said he’s seeing broad-based weakness in equities, even if the strength of a handful of tech stocks continues to mask it. “The market seems to be crumbling underneath the top, and that's more favorable for gold,” he said.

He also agreed with the prevailing view that markets are growing more confident about a September rate cut but cautioned that this week’s moves could be misleading due to the holiday.

“I don't think much has really changed this week,” he said. “A lot of the trading has been distorted with all the holidays, and it's just generally a week that people go away on vacation. We can't really glean much out of this week given all the distortions.”

Cieszynski said that, on balance, he still sees gold in a strong position to make further gains.

“I'm bullish on gold for next week,” he said. “It looks like money's coming back in, and there's places for it to come from, because money's moving out of cryptos and money's moving out of equities, so it's clearly looking to go somewhere else.”

Michael Moor, Founder of Moor Analytics, was looking at the upside and downside potential for the yellow metal. “The trade above 23276 (-2 tics per/hour) warns of decent strength—we have attained $30.3,” Moor wrote. “The trade above 23437 (-1 tic per/hour) projects this upward $15 minimum, $45 (+) maximum—we have attained $14.2; but if we fail back below decently, look for decent pressure.”

And Kitco Senior Analyst Jim Wyckoff said improving odds of a Fed cut have boosted the technical picture for gold prices. “Steady-higher as the near-term chart posture for gold has improved, and the Federal Reserve is leaning a bit easier on its monetary policy,” he said.

Spot gold last traded at $2,388.51 per ounce at the time of writing for a gain of 1.33% on the day and 2.81% on the week.

Kitco Media

Ernest Hoffman

Time to Buy Gold and Silver

Tim Moseley

Precious metals should shine in H2 2024 based on seasonal trends summer price gains should be strong MKS PAMP

Precious metals should shine in H2 2024 based on seasonal trends, summer price gains should be strong – MKS PAMP

Based on historical trends and regular seasonal performance, precious metals may be significantly underpriced going into the second half of the year, according to precious metals strategists at MKS PAMP.

In the company’s Precious Metals Seasonal Report released on July 3, the strategists wrote that a nuanced understanding of seasonal trends is important for metals investors.

“Seasonal trends alone don’t form the foundation of any trade or view, but it’s usually a useful supplement to existing ideas and helps explain away price out/underperformances,” they wrote. “Given we’re entering 2H, and after the recent strong price performance across most metals in 1H’24, it's worthwhile to provide a review of 1) how 1H 2024 performances stacked up against historical seasonal trends, and 2) provide a quick overview of the outlook for metals performances and how they ‘should perform’ into 2H and in this late summer (July 4th-Labor Day) period.”

They said that on average, second-half performances are more bullish than first-half performances historically for Gold, Silver, Platinum, Palladium, and Copper. “[A]verage 2H metals performances are 6x larger than average 1H metals performances (data was largely boosted by historical Palladium outperformance in 2H since 2010).

“Gold & Silver performances in 1H’24 directionally adhered to historical seasonal price performance norms; they rallied when they were meant to rally with Gold putting in average monthly gains 1H’24 of +2% and Silver of +3.6%/month,” they pointed out. “The notable seasonal out-performance was due to 1) Central Banks and Asia base building (Gold) and 2) fears of inflation/war/geopolitical/dedollarization risks trumping a HFL Fed hikes & a stronger US$ (Gold, Silver).”

teaser image

The platinum group metals (PGM) and copper, for their part, defied seasonal trends in the first half, with platinum and copper rallying when they would be expected to fall, while palladium posted large monthly losses when it should have seen mild gains. “The seasonal dislocation was due to 1) Platinum piggybacking Golds gains, 2) Copper capitalizing on strong fundamentals and macro participation, 3) Palladium losing out to paper shorts/positioning,” they wrote.

Statistically, gold prices posted average monthly gains of 2% in the first half of 2024 against a historical expectation of a 0.5% gain per month. “Silver rallied ~3.6% on ave per month in 1H (vs historical past ave gains of +0.2%); Platinum rallied +0.3%/month in 1H’24 (vs -0.1% losses),” they noted. “Palladium fell a chunky 2.4% / month in 1H’24 where it should put in 0.3% gains.”

Based on historical seasonal trends, MKS PAMP sees gold and silver prices posting decent gains. “[S]ince 2010, their past cumulative 2H gains are +1.4% and +2.2% respectively,” they wrote, “and Palladium should fly (cumulative gains of +10.4% in 2014). Platinum is meant to post minor losses (cumulative monthly losses of -0.7% in 2H).”

As for the short-term summer outlook, the strategists expect all the metals covered in the report to see strong performances.

“Precious metals are typically solid outperformers in late summer from July 4th into Labor Day, with Silver (+7.7%) & Gold (+4.4%) as macro investors take a step back from mainstay assets (DM equities are up marginally while US bonds typically fall and the USD$ traditionally falls -0.8%),” they said. “Some of this seasonal strength in Gold/Silver can be explained away by past dovish expectations around Jackson Hole, the 2011 European crisis & COVID monetary response (which skewed data around July/August), and preemptive buying ahead of the seasonal physical demand pickup in September. EM assets (from EMFX to equities) traditionally face headwinds over this peak summer lull.”

MKS PAMP summarized their position as follows: “if 1) markets start pricing in a Fed rate cutting cycle (HFL gives way), 2) macroeconomic data risk falls to US political risk in 2H’24, 3) broader acceptance of low likelihood of a large Global recession and/or large credit event, 4) paper positioning in Precious is lower than seasonal averages/trends —> then precious metals (especially Palladium) are rather underpriced heading into 2H.”

Kitco Media

Ernest Hoffman

Time to Buy Gold and Silver

Tim Moseley

Gold prices test fresh session highs as ISM Services PMI drops to 488

Gold prices test fresh session highs as ISM Services PMI drops to 48.8

The gold market has pushed to a fresh session high as activity in the U.S. service sector contracted sharply.

On Wednesday, the Institute for Supply Management (ISM) said its Services Purchasing Managers Index dropped to 48.8% in June, compared to May’s reading of 53.8%. The data was significantly weaker than expected, as consensus forecasts looked for a much smaller drop to 52.6.

The gold market has seen a solid bid through the early start of the North American session and the disappointing economic data is adding to the bullish momentum. August gold futures last traded at $2.372.80 an ounce, up 1.68% on the day.

The U.S. service sector is seeing its weakest activity since the economy was shuttered during the COVID-19 pandemic.

“In June, the Services PMI® registered 48.8 percent, 5 percentage points lower than May’s figure of 53.8 percent. The reading in June was a reversal compared to May and the second in contraction territory in the last three months,” said Steve Miller,Chair of the ISM Services Business Survey Committee.

Readings above 50% in such diffusion indexes signify economic growth and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.

The disappointing reading comes after the ISM said its Manufacturing PMI also fell deeper into contraction territory. Economists have said that the data raises the risks of an economic slowdown.

“Alongside a decline in the ISM manufacturing index, these surveys suggest that GDP growth will remain weak in the third quarter. They also add to evidence that labour demand is softening, and inflation will remain on a downward trend,” said Olivia Cross, North America Economist at Capital Economics.

Looking at the components of the report, the Business Activity Index dropped to 49.6%, down from May’s reading of 61.2. At the same time, the New Orders Index dropped to 47.3%, down from the previous reading of 54.1%.

Ahead of Friday’s nonfarm payrolls, the ISM report showed falling momentum in the labor market. The Employment Index dropped to 46.1%, down from May’s reading of 47.1%.

Adding to the positive environment for gold, the report noted easing price pressures. The Prices Index dropped to 56.3%, down from May’s reading of 58.1%.

Kitco Media

Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

The Artist that came out of the Winter