A dovish Powell could provide some relief next week for gold prices stuck at five-month lows

A dovish Powell could provide some relief next week for gold prices stuck at five-month lows

Growing worries that the Federal Reserve, in its bid to fight inflation, will keep interest rates aggressively elevated longer than expected is taking a significant toll on gold as prices end the week near a five-month low.

While there is still a lot of optimism that gold can regain its luster by the end of the year, analysts are warning investors that a lot of near-term technical damage has been done, and the precious metal has room to move lower next week.

Analysts note that although economic uncertainty is fairly elevated as China's economy shows signs of stress, the precious metal is not seeing much investor interest as a safe-haven asset. Rising bond yields, which hit a 15-year high Thursday, have become significant competition for gold.

Some analysts noted that it has become more compelling to hold three-month U.S. Treasury bills with a 5% interest than gold.

"The U.S. economy is not going to collapse overnight, so you would be foolish not to invest in short-duration bonds," said Adrian Day, president of Adrian Day Asset Management. "But short-term Treasuries is just a parking spot. It is not a long-term investment."

Day added that he remains long-term bullish on gold, but it is difficult to ignore the current weakness in the market. December gold futures are closing the week at $1,918.20 an ounce, down 1.4% from last week. This is the fourth consecutive week of lower prices for the precious metal.

Ole Hansen, head of commodity strategy at Saxo Bank, said he also maintains a long-term bullish outlook for gold but sees a risk of lower prices next week.

"While we maintain a bullish outlook for gold, these developments also highlight the risk that gold may continue to struggle, attracting demand from investors until something breaks, either through a credit event, a weaker dollar, or the belief the FOMC has switched its focus towards cutting rates. Technical traders are unlikely to offer much support until the downtrend is broken and, until then, gold may be at risk of an extension towards [spot gold] $1865," he said in a weekly report.

The Federal Reserve continues to dominate the gold market

Although economic data could create short-term volatility in the precious metals market next week, analysts expect to see muted market action as investors wait for Friday as Federal Reserve Chair Jerome Powell speaks at the central bank's annual retreat at Jackson Hole, Wyoming.

Recent economic data has provided little guidance on the health of the economy, but a growing choir of economists expects that Powel will strike a more dovish tone even as he says the central bank will keep its options open and remain data dependent.

"We view next week's Jackson Hole symposium as a good opportunity for Chair Powell to start laying the ground for the next evolution of the Fed's post-Covid policy guidance," said rate analysts at TD Securities. "Given recent favorable inflation and labor market data, we expect the end-of-the-tightening-cycle message to dominate Fedspeak in coming weeks as we approach the September FOMC meeting."

Michele Schneider, director of trading education and research at MarketGauge, said that even neutral comments from Powell would be enough to support gold prices as it would indicate that bond yields have peaked.

Schneider added that Powell is in a difficult place as he has tried to maintain an aggressive stance in the face of a slowing economy.

"There is still a lot of debate and uncertainty on the direction of the economy: are we going to see a recession, a soft landing, deflation, stagflation? Regardless, we know that we will see some negative effects from higher interest rates at some point," she said. "The Federal Reserve will be unable to maintain these aggressive rates when the economy starts to slow. They will have to cut interest rates even as inflation remains high and those expectations are supporting gold prices."

Although gold has seen solid selling pressure in the last four weeks, Schneider said that the market continues to show resilient strength. She pointed out that despite the selling pressure, gold remains above its March lows.

"I'm not worried about gold," she said. "I would be looking to buy at lower levels."

Technical damage has been done

While there might be a silver lining for gold next week, there are still some dark clouds hovering over the marketplace. Analysts noted that it has suffered significant technical damage, dropping below its 200-day moving average.

Alex Kuptsikevich, the FxPro senior market analyst, said in a note that spot gold prices could be on their way to $1,800 an ounce as the precious metal has seen only three positive sessions through August.

Gold's sharp decline began a month ago when the bears once again prevented the metal from consolidating above $1980, a critical resistance level since May," Kuptsikevich said. "On the way down in August, gold first broke below the 50-day moving average and then two days ago below the 200-day moving average. Both curves act as medium and long-term trend indicators. If there is no strong rally above $1905 today or Monday, confidence will grow that gold's downtrend is already established. The $1800-1810 area is a potential technical target in this case. This is where gold has been supported or surrendered many times over the past three years."

Marc Chandler, managing director at Bannockburn Global Forex, said that gold appears to be looking for a bottom, and next week's price action could be crucial.

"A Close above the 5-day moving average ~$1897, which it has not done this month, maybe the first sign that the downside momentum is easing," he said. "A move above the 200-day moving average (~$1906) would help stabilize the technical tone."

 

Next week's data:

Tuesday: Existing Home Sales

Wednesday: Flash Manufacturing PMI, New Home Sales

Thursday: Weekly Unemployment Claims, Durable Goods Orders, Jackson Hole Symposium

Friday: Fed Chair Powell Speaks at Jackson Hole

By

Neils Christensen

For Kitco News

Contact nchristensen@kitco.com

www.kitco.com

Time to Buy Gold and Silver

Tim Moseley

United Nations Insane Attempt At Global Digitization: A Plan To Control And Profit

United Nations' Insane Attempt At Global Digitization: A Plan To Control And Profit

For most of us, it feels like digitization has already permeated every aspect of our lives, whether we like it or not. Some, most notably UN Secretary-General António Guterres, believe digitization is nowhere near the worldwide goals needed. The world must be digitized as quickly as possible, ideally no later than 2030. 

As we didn’t vote for this, all we can do as citizens is forward petitions to governments opposing this invasion of privacy and top-down control. More often than not, it seems to fall on deaf ears as the politicians supposedly working for the people are getting orders from corporate lobbyists or unaccountable and unelected international organizations, not their citizens. 

The United Nations is one of the most influential of these organizations, and it recently released a plan for a “Global Digital Compact” that governments will soon agree to. This article summarizes these digital plans, when they’re expected to be finalized, and what we can do to stop them. 

The report is titled “A Global Digital Compact – an Open, Free and Secure Digital Future for All.” It was published by the United Nations (UN) in May 2023 after almost four years of work. 

 
Source: A Global Digital Compact.pdf

Incidentally, in a speech that António gave at the World Economic Forum’s (WEF) Davos meeting in January 2023, he confirmed that the WEF and its affiliates have been forcing the UN's Sustainable Development Goals or SDGs using the Environmental, Social, and Governance or ESG investment trend. In other words, the WEF is effectively the arm of the United Nations. 

The good news is that the private sector isn't too keen to go along with the UN these days, per António's admission. The bad news is that the public sector is still very much on board, and António instructed the politicians at the WEF to ignore the opinions of their populations when implementing the UN's policies. 

The fact that the public sector is still on board means that some of the UN's policies could still be implemented. If you want a sense of what these policies will look like, consider that the UN recently took over the EU's pandemic passport to develop what is essentially going to be a global digital ID. The continued influence of the UN in the public sector is why it's prudent to summarize its recent report. It's necessary to know what they're planning and when they want to implement it if you want to sidestep or even stop it.

Report’s Brief Introduction

António himself apparently wrote the report; however, given the detail and scope of these initiatives and reports, many would find that very hard to believe. It's more than likely that someone is advising António, and it's possible he didn’t write these reports at all.

Speculation aside, the report begins with a brief introduction. In the first few sentences, António reveals that the proposals in this report are expected to be approved and adopted by global governments at the Summit of the Future in September 2024. He also reveals that he is behind the broader UN initiative this report is related to. 

Antonio underscores that all the policies in this report are intended to help achieve the UN's SDGs. For context, the SDGs are a set of 17 milestones that every country is supposed to meet by 2030. The SDGs are the origin of digital IDs, CBDCs, and that 2030 date you see everywhere. 

António explains that these policies can only be achieved with the help of so-called stakeholders. A word that effectively refers to the world's most powerful individuals and institutions. Note that private sector stakeholders want profits, and public sector stakeholders want to control. This is why both parties are obsessed with digitization. Plugging everyone into the system increases profits and makes it easier to control them. 

António laments that some people aren't as plugged in as others and implies that this is why inequality is growing around the world. Some would say that inequality is increasing because central banks and governments are lining their pockets and the pockets of their cronies using money printed out of thin air or taken from the average person via taxation, but that's a topic for another time. 

António also laments the fact that new and innovative technologies such as AI and crypto are not being sufficiently governed, that is, controlled. He applauds the digitization that resulted from the pandemic and implies that this is the direction the world should go in. António ends the introduction by saying, "Global digital compact is necessary to achieve the governance required for a sustainable digital future.” 

By now, you'll know that governance means control, and you'll also notice that António threw the word ‘sustainable’ in there out of nowhere. This could be a subtle reference to the individual carbon credit score system the UN is trying to set up.  

Requirements For Global Digital Cooperation

The first part of the report is about the requirements for global digital cooperation. António explains that it requires having a set of shared goals, and wouldn’t you know it, the SDGs are highlighted in blue. 


Source: A Global Digital Compact.pdf

António stresses that we must fully digitize the remaining 2.7 billion people ASAP. Notably, more than 1 billion are children. He acknowledges that not everyone wants to be part of the system and says that a “demand pull” is also needed and that this is where the public sector can play a role. He explains that they can do this by making things like digital ID mandatory to access Public Health Services. António includes schools and cultural services, which begs the question of whether we’ll eventually need to show a digital ID to get an education or practice religion. 

António calls on both the public and private sectors to make all their data accessible so that the UN can keep track of how close countries are to meeting the SDGs. He admits that the UN’s progress towards achieving 41% of the 92 environmental SDGs indicators cannot be globally measured due to a lack of interoperable data and standardized reporting. In other words, the UN has struggled to assess whether countries have achieved 41% of the SDGs by 2030.


Image source: UNStats.com

He then pivots to a topic he's been passionate about on X lately: Online Safety, AKA censorship. He says, “Open, safe, and secure use of the internet is slipping away from us, potentially, permanently.” He blames this on disinformation, hate speech, and the like. Antonio acknowledges that some countries have taken steps to censor the internet but says this isn't enough. He says the governments need to get more involved, both online and in the real world, and that they should crack down on hate speech. He also says that the “Global nature and infrastructure of the internet needs to be protected.” 

This is reminiscent of something António said in his speech at the WEF. He fears that the internet is splitting in two: A censored internet in the West and a censored internet in the East. Meanwhile, regarding AI, António says that the rapid advancement of technology is making governance, AKA control, very hard for the UN and its affiliates and that AI has put this on full display. 

Naturally, António is upset that AI is making it possible to generate so much content. “Imagine the disinformation”, he says. António does acknowledge that AI can be beneficial, but only if it is sufficiently controlled. He reveals that the UN has already been working with AI experts to assess how it can be controlled and how to make sure that it can always be shut down.

Lastly, António says that the “Arc of Innovation” needs to be bent toward solving societal problems and global challenges. Translation: AI needs to be used to manage the peasants. He says that governments need to be involved because businesses won't do this on their behalf. Some would say that some companies are doing the bidding of UN-controlled governments already, but let's not go there. 

Digitization Approach Similar To Climate Crisis?

The second part of the report is about the Global Digital Compact António is obsessed with. He starts by saying that digitization should be addressed in a manner similar to the climate crisis. This is quite concerning as it implies lots of regulation, intervention, and restriction of the internet. It would be ludicrous if they swapped out the climate crisis with some sort of AI-driven digitization crisis, but that would never happen, would it?

Speculation aside, António explains that the global digital compact he envisions adheres to the UN's SDGs, and the purpose of the compact would be to ensure that the SDGs are met. He hints that this will require “New governance arrangements.” In other words, more shady organizations. 

On a curious note, throughout the report, António refers to countries as “states,” presumably a term in the global government structure the UN is apparently trying to create. Antonio reveals that the UN is already actively discussing digitization with the states.


Member States of the UN

The Global Digital Compact Objectives

António then lists the global digital compact's objectives and the actions stakeholders should take to ensure these objectives are met. The first objective is to plug everyone into the matrix, and António provides a long list of measures, including subsidies and $100 billion of funding to this end. 

The above ties into the second objective: to invest heavily in digitization and “develop environmental sustainability by design and globally, harmonized digital sustainability standards, and safeguards to protect the planet.” It's a word salad that sounds like total control of digital technologies. 

The actions António recommends include money, money, and more money. They also encompass sharing data so the UN can finally start tracking how far along countries are in meeting the SDGs. For reference, there are only seven years left. It's safe to say that it's not looking good. Maybe they'll just rebrand like they did when their Millennium Development Goals failed due to the 2008 GFC.  

The third objective is to end the “gender digital divide” and to ensure that labor rights are adhered to online. Like all vague and ambiguous objectives, the actions required to meet them include some seriously dystopian stuff, including creating a dedicated UN government body in every country. 

The fourth objective is to ensure the internet remains open, secure, and shared. António's actions include avoiding blanket internet shutdowns but managing dissent or opposition. He suggests that governments use “targeted measures” instead.

This relates to the fifth objective: to address disinformation, hate speech, and the like to develop “trust labels and certification schemes” and to ensure that gender is included as a part of every digital policy to ensure absolute equality. Antonio proposes a long list of actions here, the most important of which is establishing a global code of conduct to ensure that the internet is policed correctly in every corner of the planet. After all, if there is a place where free speech still exists, opposition to the UN and its allies could start to spread. We can't have that, can we?

The sixth objective is to ensure adequate data governance, i.e., control. Actions include ensuring that all data is interoperable because nothing says privacy, like sharing your most sensitive data with every corporation, government, and organization on the face of the Earth. 

The seventh objective is to ensure adequate control of AI. Actions include “Urgently launching a global body that will regulate all of the AI in existence and any new AI that emerges.” António mentioned the UN half a dozen times, at least in this section. It sounds like they bought into the AI boom. 

The final objective is to ensure all other targets are met under the UN's SDGs. If you read through the report, you’ll see that António used “I” rather than “we” when recommending what action stakeholders should take to ensure these objectives are met. Those who often read reports may know this is rare in accounts by any organization. Some would say it speaks to the size of António's ego. 

Implementation Of Global Digital Compact

In any case, in the next part of the report, António discusses the actual implementation of the global digital compact. He starts by saying that various stakeholders will be responsible for different tasks. He then provides a long list of UN entities to assist with implementation. Oddly enough, António doesn't believe these existing UN entities are sufficient. He reveals that he wants to establish an annual digital corporation forum after all the world's governments agree to the global digital compact at the Summit of the Future in September 2024. 

What's hilarious is that he doesn't even ask for feedback about this idea. He literally says that he's just going to go ahead and start planning the agenda for this new forum. Would-be members of the forum already have homework. Every year, they will write an extensive report about digitization for the UN. 

António concludes the report by recounting how the UN began this digitization initiative four years ago and how he released an initial roadmap for it two years ago. A partial timeline is illustrated in the image below. Note that it doesn't end with that event in 2024. It ends with the World Summit on the Information Society review in 2025 instead.

 
Source: A Global Digital Compact.pdf

António then declares,

“The time for talking about the need for digital cooperation has long passed. We need to focus on how we make this a reality. We need to act now, and with speed, if we are to recover the potential of digital technologies for the equitable and sustainable development that is slipping away from us and the planetary crisis that confronts us.”

The remainder of the document provides a list of all the different UN entities and stakeholders involved in this particular initiative. Most people, including me, do not recognize any of the key players in the infographic (shown below), and many critical thinkers opine that the rabbit hole runs right to the center of the earth with each one. 


Source: A Global Digital Compact.pdf

How Do We Stop This Global Takeover?

So the big question is how to stop this Global Digital Compact. The answer could be as simple as letting history run its course or as complex as convincing public institutions to steer clear of it. The simple answer is to reference all the countless UN initiatives that never came to pass. As you can imagine, coordinating hundreds of institutions and thousands of individuals can be challenging. Everyone must be on the same page, or they won’t meet their international goals. After all, the world is pretty fragmented right now, and that's why António is so frustrated. 

Internationally, the global South is slowly cutting itself off from the global North. Domestically, political tensions are rising fast, and UN-affiliated ideologies are quickly becoming unpopular. In this climate, it's impossible to achieve widespread consensus. The fact that some of the UN's initiatives are bad for the average person makes the presence of countries not conforming to an agreement a problem. That's because regular folks will be able to compare outcomes and see what effects the UN has. And if we end up with some kind of financial crisis, it's guaranteed that the UN's Global Digital Compact or the SDGs will be of insignificant value. 

Consider that the 2008 financial crisis stopped the MDGs dead in their tracks. They were also on year eight of a 15-year journey. It would be uncanny if history repeated itself this year. But let’s play out a scenario for the sake of entertainment. Let's assume the UN somehow gets all its ducks in a row. In this case, convincing public institutions to defect from its digitization agenda will be extremely difficult. 

The UN can pressure them to comply using other public and private institutions. Some of the UN's digital initiatives, such as CBDCs, may appear appealing to the average person initially, which means there's likely to be lots of voluntary adoption at the outset. It's not until later that the populace will realize that they've sleepwalked into digital slavery. 

As such, the only solution would be to create an alternative system or help existing alternative systems grow. This is what the UN fears the most, especially when this alternative system consists of rapidly evolving technologies, such as ethical AI and cryptocurrency. 

Indeed, the fact that the UN fears these kinds of technologies proves that these technologies are a part of the solution. If the UN gets its way, it could also become a part of the problem. Thankfully, technology evolves much faster than the United Nations and is also much humbler than the UN's head honcho, so it's implausible that the stratagems of these self-serving globalists will reign. 

The great reset/agenda 2030 is falling apart, so always seek the truth and share it. The elites will try and take control by putting us in de facto digital prisons with CBDCs and digital IDs, but alternatives exist and are evolving. They will prevail if they're promoted, adopted, and crowdfunded.

Cryptocurrency will play a critical role in this decoupling between the average person and the corrupt institutions that rule them. Success is not guaranteed, but the pendulum is swinging toward freedom. The UN/WEF's self-confidence is waning as its stakeholders and countries realize how out of touch they are with ordinary people like us, so let's keep that momentum going.

 

 

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 closes higher to end nine consecutive daily declines and lower lows

Gold closes higher to end nine consecutive daily declines and lower lows

Gold futures had declined for the last nine consecutive days taking prices dramatically lower from just under $1980 per ounce to yesterday’s low of $1914. Today gold futures basis the most active December contract is trading fractionally higher up $3.40 and currently fixed at $1918.60. However, if you look under the hood so to speak it was dollar weakness that provided the tailwinds which moved gold higher breaking the consecutive losing streak.

The dollar is trading down 0.16% and gold futures are up by 0.17% indicating that today’s gains were almost totally the net result of dollar weakness. The dollar index is currently down 0.155 points and fixed at 103.315. Silver which had also been deep in a corrective mode is now in its second day of higher pricing. The most active September futures contract is currently fixed at $22.81 after factoring in today’s net gain of $0.095.

On a technical basis, there are market technicians that believe that nine consecutive lower lows will typically be followed by a price reversal.

There is a Japanese candlestick pattern that is based upon a series of nine consecutive days of price declines. This price pattern is based upon the identification of 8 to 10 new price highs, or new price lows. The theory behind this Japanese candlestick pattern group is that after 8 to 10 new price lows the market has moved into an oversold condition. This pattern is an exhaustion pattern and identifies potential markets being oversold.

There is also a world-renowned technical market analyst who has created multiple mathematical formulas which are used for market timing and analytics, Tom DeMark. His proprietary studies and formulas designed to identify areas of potential price inflection have identified a pattern based on the numbers 9 and 13.

Simply called 9*, which according to Demark says that after nine consecutive price declines with lower lows is often followed by a price reversal.

According to Tom Demark indicators, “A 9 indication marks a completion of the Setup phase in the Sequential and Combo family of indicators. The 9 output looks for a series of consecutive price comparisons to define the underlying environment. Generally speaking, these 9 results are often followed by a price reversal, with the impact and duration defined by other elements of the indicator.”

Although gold trading higher by three dollars today does not indicate a full-blown reversal in the precious yellow metal, a price reversal must begin in exactly this way. We will have to wait till next week to see if there is follow-through bullish market sentiment moving gold off its recent lows.

Gary S. Wagner

Time to Buy Gold and silver

Tim Moseley

Nexus Rewards: A Comprehensive Guide to the Loyalty Program

Nexus Rewards: A Comprehensive Guide to the Loyalty Program

Nexus Rewards

Nexus Rewards is a membership club that offers cash back, savings, and discounts on everyday purchases. The platform is designed to help people make money on the things they are already purchasing. Nexus Rewards offers a simple but highly lucrative referral rewards program that enables people to build a long-term sustainable income.

To join Nexus Rewards, membership is free. Members can earn cashback on gasoline, groceries, hotel and travel, dining, and online and offline shopping. They can also get up to 80% off prescription medications. The referral rewards program offers 15¢ a gallon of gas per referral. Members can earn cashback and rewards on their purchases, as well as earn money by referring others to the platform.

Nexus Rewards also offers an app that enables members to access their rewards and savings on the go. The app is available for both iOS and Android devices. Members can also earn money through the app by referring others to Nexus Rewards. The platform offers additional benefits such as a 30-day money-back guarantee, no annual fees, and no credit checks.

Key Takeaways

  • Nexus Rewards is a membership club that offers cash back, savings, and discounts on everyday purchases.
  • Members can earn cashback on gasoline, groceries, hotel and travel, dining, and online and offline shopping.
  • Nexus Rewards offers an app that enables members to access their rewards and savings on the go and earn money by referring others to the platform.

Understanding Nexus Rewards

Nexus Rewards is a cashback, savings, and membership club that enables people to earn money on things they are already purchasing. The program is designed to help members build a long-term sustainable income. In this section, we will discuss the Nexus Rewards program and what it offers.

Rewards Program

Nexus Rewards offers a simple but highly lucrative Referral Rewards Program that enables members to earn money by referring others to the program. Members can earn up to 50% cashback on purchases made through the program's platform. They can also earn commissions on the purchases made by their referrals.

The program offers two types of memberships: Free Membership and Premium Membership. Free members can earn up to 20% cashback on purchases made through the program's platform. They can also earn commissions on the purchases made by their referrals. Premium members, on the other hand, can earn up to 50% cashback on purchases made through the program's platform. They can also earn commissions on the purchases made by their referrals.

To become a Premium member, one has to pay a membership fee. The membership fee is a one-time payment, and there are no monthly or yearly fees. Premium members also have access to other benefits, such as exclusive deals and discounts, priority customer support, and more.

In summary, Nexus Rewards is a cashback, savings, and membership club that offers a Referral Rewards Program. Members can earn up to 50% cashback on purchases made through the program's platform. They can also earn commissions on the purchases made by their referrals. The program offers two types of memberships: Free Membership and Premium Membership. Premium members have access to additional benefits, such as exclusive deals and discounts.

Membership Details

Nexus Rewards offers both Free and Premium membership options to its customers. Here are the details of each option:

Free Membership

The Free Membership option is available to anyone who wants to join Nexus Rewards. As a Free Member, customers can enjoy the following benefits:

  • Cashback on gasoline purchases ranging from 15 cents to $1.00 or more per gallon
  • Cashback on groceries up to 5%
  • Cashback on hotel and travel up to 35%
  • Cashback on dining up to 50%
  • Up to 80% off prescription medications
  • Referral Rewards Program, where Free Members can earn 15 cents a gallon of gas per referral

To become a Free Member, customers need to sign up on the Nexus Rewards website. There are no sign-up fees or monthly membership fees for Free Members.

Premium Membership

The Premium Membership option is available for customers who want to enjoy additional benefits and rewards. Here are the details of the Premium Membership option:

  • Monthly membership fee of $21.95
  • Cashback on gasoline purchases ranging from 25 cents to $1.50 or more per gallon
  • Cashback on groceries up to 10%
  • Cashback on hotel and travel up to 50%
  • Cashback on dining up to 75%
  • Up to 90% off prescription medications
  • Referral Rewards Program, where Premium Members can earn 25 cents a gallon of gas per referral

In addition to the above benefits, Premium Members also receive access to exclusive discounts and promotions. To become a Premium Member, customers need to sign up on the Nexus Rewards website and pay the monthly membership fee.

Overall, Nexus Rewards offers both Free and Premium Membership options to customers who want to earn cashback and rewards on their purchases. Customers can choose the membership option that best suits their needs and budget.

Rewards and Savings

Nexus Rewards is a membership club that offers its members a variety of rewards and savings. The club is designed to help people save money on the things they are already purchasing and earn cash back and profit sharing. In this section, we will discuss the different rewards and savings that members of Nexus Rewards can enjoy.

Cash Back

One of the primary benefits of being a member of Nexus Rewards is the cashback program. Members can earn cashback on gasoline, groceries, hotel and travel, dining, and online and offline shopping. The cashback amount varies depending on the purchase, but members can save up to 50% on dining and up to 80% on prescription medications. The cashback program is easy to use, and members can access it through the Nexus Rewards app.

Profit Sharing

In addition to cashback, Nexus Rewards also offers profit sharing to its members. Members can earn a share of the profits generated by the club based on their level of membership. The profit sharing program is designed to help members build a long-term sustainable income. The more members a member refers to the club, the higher their profit sharing percentage becomes.

Referral Rewards Program

Nexus Rewards also has a referral rewards program that allows members to earn additional cashback and profit sharing. Members can earn 15 cents per gallon of gas for every referral they make, and they can earn additional cashback and profit sharing based on the purchases made by their referrals. The referral rewards program is an excellent way for members to earn additional rewards and savings while helping others save money.

Overall, Nexus Rewards offers its members a variety of rewards and savings. The cashback program, profit sharing, and referral rewards program are just a few examples of the benefits that members can enjoy. By becoming a member of Nexus Rewards, individuals can save money on the things they are already purchasing while earning additional rewards and savings.

Shopping and Discounts

Nexus Rewards offers a variety of shopping and discount options to its members. Members can save money on everyday purchases like gasoline, groceries, dining, and travel. They can also access exclusive discounts on online and offline shopping.

Merchants

Nexus Rewards partners with a wide range of merchants to provide members with discounts and cashback offers. Members can save up to 25 cents per gallon on gasoline purchases at participating gas stations. They can also earn cashback on groceries, up to 5% cashback on hotel and travel bookings, and up to 50% off on dining at participating restaurants.

In addition, members can access exclusive discounts on online and offline shopping at popular retailers like Walmart, Target, Best Buy, and more. Members can save up to 80% off on prescription medications, and also earn cashback on their purchases.

Savings Portal

The Nexus Rewards Savings Portal is a one-stop-shop for members to access exclusive discounts and cashback offers. Members can search for deals by category, merchant, or keyword. The portal also features a referral rewards program, where members can earn 15 cents per gallon of gas for each referral.

Overall, Nexus Rewards offers a comprehensive shopping and discount program for its members. With a wide range of merchants and exclusive discounts, members can save money on everyday purchases and earn cashback on their purchases.

Nexus App

Nexus Rewards offers a free, user-friendly app that allows members to access a wide range of benefits and rewards on the go. The app is available for both Android and iOS devices, and can be downloaded from the Google Play Store or the Apple App Store.

App Features

The Nexus app is packed with features that make it easy for members to save money and earn rewards. Some of the key features of the app include:

  • Cashback Rewards: Members can earn cashback rewards on gasoline, groceries, and other purchases made both online and offline. The amount of cashback varies depending on the merchant and the product, but can reach as high as 40%.

  • Bill Reduction: The app allows members to save money on their monthly bills for phone, internet, heating, electric, and more. Members can also track their bills and receive alerts when new bills are due.

  • Dining Discounts: Members can save up to 40% on dining at over 500,000 restaurants nationwide. The app also includes a feature that allows members to search for restaurants by location, cuisine, and price.

  • Travel Savings: Members can save up to 75% on hotel and travel in 141 countries. The app includes a feature that allows members to search for hotels and flights by location, date, and price.

  • Prescription Discounts: Members can save up to 90% on prescription medications at over 60,000 pharmacies nationwide. The app includes a feature that allows members to search for pharmacies by location and price.

  • Referral Rewards: Members can earn additional cash rewards by referring friends and family to the Nexus Rewards program.

Overall, the Nexus app is a powerful tool that allows members to save money and earn rewards on the go. With its user-friendly interface and wide range of features, the app is a must-have for anyone looking to get more out of their money.

Earning with Nexus

Nexus Rewards is a cashback, savings, and membership club that provides an opportunity for people to earn money on their everyday purchases. The company offers a highly lucrative referral rewards program that enables members to build a long-term sustainable income. In this section, we will explore how members can earn commissions and residual income through the Nexus Rewards compensation plan.

Commissions

Nexus Rewards offers a generous commission structure that rewards members for referring others to the program. Members can earn commissions on the purchases made by their referrals, as well as on the purchases made by the referrals of their referrals. The commission structure is as follows:

Level Commission
1 20%
2 10%
3 5%
4 2.5%
5 1.25%

For example, if you refer someone to Nexus Rewards and they make a purchase of $100, you will earn a commission of $20. If that person then refers someone else who makes a purchase of $100, you will earn a commission of $10. This structure allows members to earn commissions on the purchases made by their entire downline.

Residual Income

In addition to commissions, members can also earn residual income through the Nexus Rewards compensation plan. The company offers a unique revenue-sharing model that allows members to earn a share of the company's profits. This revenue-sharing model is based on a points system, where members earn points for their purchases and the purchases made by their downline.

The company sets aside a certain percentage of its profits each month to be distributed among members based on their point totals. The more points a member has, the larger their share of the revenue. This provides members with a passive income stream that can continue to grow over time.

Overall, the Nexus Rewards compensation plan provides members with a unique opportunity to earn money on their everyday purchases. The combination of commissions and residual income allows members to build a long-term sustainable income that can continue to grow over time.

Additional Benefits

Nexus Rewards offers a variety of additional benefits that can help members save money on everyday expenses. These benefits include cashback on groceries, travel, dining, and more. Here are some of the additional benefits that members can take advantage of:

Travel

Nexus Rewards members can save up to 35% cashback on hotel and travel expenses. This can include flights, hotels, rental cars, and more. Members can also take advantage of exclusive discounts on travel packages and vacation rentals.

Groceries

Nexus Rewards members can earn up to 5% cashback on groceries. This can include purchases made at grocery stores, supermarkets, and online grocery retailers. Members can also take advantage of exclusive discounts on meal delivery services and meal kit subscriptions.

Gas

Nexus Rewards members can earn up to 15 cents per gallon of gas for every referral they make to the program. Members can also take advantage of exclusive discounts on car maintenance and repair services.

Car Insurance

Nexus Rewards members can save money on car insurance by taking advantage of exclusive discounts and special offers. Members can also compare rates from multiple insurance providers to find the best deal.

Overall, Nexus Rewards offers a variety of additional benefits that can help members save money on everyday expenses. From travel and groceries to gas and car insurance, members can take advantage of exclusive discounts and cashback offers to save money and get more for their money.

Frequently Asked Questions

What are the benefits of using Nexus Rewards?

Nexus Rewards is a cashback, savings, and membership club designed to help people make money on everyday purchases. By becoming a premium member, users can earn cashback on purchases both online and offline. Nexus Rewards also offers discounts and savings on existing expenses and purchases.

How do I sign up for Nexus Rewards?

To sign up for Nexus Rewards, users can go to the website and click on the "Join Now" button. There is a one-time $10 admin/setup fee and a $21.95 monthly subscription fee to become a premium member.

Can I earn rewards by referring others to Nexus Rewards?

Yes, premium members can participate in the lucrative referral rewards program. By referring others to Nexus Rewards, users can earn a long-term sustainable income.

What types of rewards can I earn through Nexus Rewards?

Through Nexus Rewards, users can earn cashback, discounts, and savings on everyday purchases. Premium members can also participate in the referral rewards program to earn a long-term sustainable income.

Is Nexus Rewards a legitimate rewards program?

Yes, Nexus Rewards is a legitimate rewards program designed to help people make money on everyday purchases.

Are there any fees associated with using Nexus Rewards?

Yes, there is a one-time $10 admin/setup fee and a $21.95 monthly subscription fee to become a premium member of Nexus Rewards. However, the benefits of becoming a premium member far outweigh the costs, as users can earn cashback, discounts, and savings on everyday purchases, as well as participate in the referral rewards program to earn a long-term sustainable income.

Tim Moseley

Gold weaker as US Treasury yields continue to climb

Gold weaker as U.S. Treasury yields continue to climb

Gold prices are modestly down and hit another five-month low today, as U.S. Treasury yields are on the rise, with the 10-year note scoring its highest yield in 15 years, at around 4.3%. The present rally in the U.S. dollar index is another bearish element that have the gold and silver sellers in overall control. December gold was last down $5.20 at $1,923.20 and September silver was up $0.19 at $22.72.

(Note: For exclusive market forecasts and intermarket insights, sign up to my new weekly Markets Front Burner newsletter, at https://www.kitco.com/services/markets-front-burner.html )

The minutes from the last FOMC meeting of the Federal Reserve, released Wednesday afternoon, reminded traders and investors that the Fed remains committed to bringing down U.S. inflation. The marketplace read the minutes as leaning hawkish. U.S. Treasury yields rose further following the release of the minutes, while the U.S. dollar index hit a nine-week high overnight. Gold prices dropped to a five-month low overnight.

The key outside markets today see the U.S. dollar index near steady on a pause from recent gains. Nymex crude oil prices are higher and trading around $81.00 a barrel.

Asian and European stock markets were mixed in overnight trading. U.S. stock indexes are weaker near midday.

In overnight news, China’s central bank said it will provide further stimulus to the listing Chinese economy. The central bank said it wants to prevent the Chinese yuan from further depreciation. The central bank also said it will coordinate financial support for local government debt risk and provide support to the housing market. The statements came from the People’s Bank of China second-quarter monetary policy report. China’s weakening economic growth has also been a drag on the precious metals market bulls, on weaker demand worries.

Technically, December gold futures prices hit another five-month low today. Bears have the firm overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at $1,980.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at Wednesday’s high of $1,938.20 and then at $1,950.00. First support is seen at today’s low of $1,918.80 and then at $1,910.00. Wyckoff's Market Rating: 3.5.

September silver futures bears have the firm overall near-term technical advantage. Prices are in a four-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at today’s high of $23.07 and then at $23.50. Next support is seen at this week’s low of $22.265 and then at $22.00. Wyckoff's Market Rating: 3.5.

September N.Y. copper closed up 355 points at 369.30 cents today. Prices closed nearer the session high and hit a 2.5-month low early on today. Prices also scored a bullish outside day up today. The copper bears have the firm overall near-term technical advantage. Prices are in a fledgling downtrend on the daily bar chart. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at the July high of 402.40 cents. The next downside price objective for the bears is closing prices below solid technical support at the May low of 356.50 cents. First resistance is seen at today’s high of 371.95 cents and then at this week’s high of 374.90 cents. First support is seen at today’s low of 362.70 cents and then at 360.00 cents. Wyckoff's Market Rating: 2.5.

By

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Federal Reserve minutes reveal angst regarding Upside Inflation Risks’

Federal Reserve minutes reveal angst regarding ‘Upside Inflation Risks’

The minutes from the July FOMC meeting were released today. The document indicated that most Federal Reserve officials still believe that high levels of inflation are an ongoing threat and merit additional interest rate hikes. However, there was not an overall unison regarding the path forward in what can be best described as mixed messages amongst Federal Reserve members.

One of the primary takeaways was that members were divided over the question of further rate hikes. While most Fed officials were in favor of an increase in the terminal interest rate (Fed funds rate), some members believe that further hikes might take rates too high.

According to an article in The Wall Street Journal, “Minutes of the July policy meeting, released Wednesday, said some officials thought the risks of raising rates too much versus too little “had become more two-sided, and it was important that the committee’s decisions balance the risk of an inadvertent overtightening of policy against the cost of an insufficient tightening.”

A divided Federal Reserve reveals mixed messaging

Numerous mixed messages were revealed by Fed members. Although “most” senior voting members were in favor of a further increase in interest rates, there were a few notable dissenters to that view. Philadelphia Fed President Patrick Harker, a voting member said, “I believe we may be at the point where we can be patient and hold rates steady.”

In addition, presidents of both Boston and Atlanta federal banks revealed that they were in favor of a longer pause. Last week Susan Collins, President of the Boston Federal Reserve Bank said, “The risks of doing too much have increased and are much closer to balance, relative to the risks of not doing enough.”

Other Fed members expressed apprehension about the real possibility that underlying price pressures may prove to be more persistent as a direct result of a tight labor market. A tight labor market would allow workers to bargain for higher pay and that would make it more difficult to reduce inflationary pressures.

Also in an interview last week, Tom Barkin, President of the Federal Reserve Bank of Richmond expressed uncertainty that inflation could be moved to the Fed’s 2% target, “If the economy is softening as you would expect. If it’s not, then I do wonder about the policy path.”

Yesterday, Neel Kashkari, President of the Minneapolis Federal Reserve Bank reinforced the idea of more rate hikes when he said that the Fed “Is not ready to declare victory in the battle over high inflation.”

Overall, there is a consensus that the Federal Reserve will not raise rates at the next FOMC meeting in September. At the same time, according to the CME’s FedWatch tool, there is a one in three chance that the Fed will implement one more 0.25% rate hike this year. Since interest rate hikes this year have resulted in bearish market sentiment taking gold lower, today’s minutes will most likely continue that trend.

As of 4:30 PM EDT, gold futures basis the most active December contract is currently down $11.50 or 0.59% and fixed at $1923.70. Today’s price decline was based on a mixture of dollar strength and traders bidding the precious yellow metal lower. Currently, the dollar (DX) is up 0.26% and the index is fixed at 103.36.

By

Gary Wagner

Contributing to kitco.com

Time to Buy Gold and silver

Tim Moseley

Gold continues to trade lower following a strong US retail sales report

Gold continues to trade lower following a strong U.S. retail sales report

One could expect that the latest government report on retail sales revealing that they increased by 0.7% in July would garner a positive reaction in U.S. equities. However, it had the exact opposite effect taking all three major indices lower. This is because strong economic growth gives the Federal Reserve more latitude to continue to raise rates as they work to bring inflation down to its target of 2%.

Today, Neel Kashkari, President of the Minneapolis Federal Reserve Bank reinforced the idea of more rate hikes by the Federal Reserve this year when he said that the Fed “is not ready to declare victory in the battle over high inflation.” Kashkari made that comment in a discussion during the API Group’s Global Controllers Conference. He also added that “Inflation is coming down. We have made progress and good progress. I feel good about that. It’s still too high.”

According to an article in MarketWatch, “Kashkari, who is a voting member of the Fed’s interest-rate committee this year, said that given the recent positive signs on inflation, the Fed can take a little bit more time to get some more data before we decide to do more. The Fed is a long way away from cutting rates because core inflation is still around 4%.”

Kashkari framed his comments with a warning about not repeating the monetary policy of the Federal Reserve in the 1970’s saying he wanted to avoid repeating the experience.

Tomorrow market participants will gain more insight into the internal thought process of Federal Reserve members when the minutes from last month’s FOMC meeting are released. The Federal Reserve Bank of Atlanta released its latest estimate of GDP growth at 5% today. The Atlanta Fed uses a modeling system they developed called GDPNow, which is based on using available economic data for the current measured quarter.

The truth is that further rate hikes by the Federal Reserve will provide more bearish tailwinds for gold evident in today’s continued decline in gold prices. Gold has declined for the last seven consecutive trading days. Beginning on August 7 gold prices began a correction which has been characterized by a series of lower lows, and lower highs when viewed on a daily chart. On Monday, August 7 gold traded to an intraday high of $1991 almost $50 above today’s intraday high of $1944.30.

As of 4:50 PM EDT, gold futures basis the most active December contract is currently down $9.80 or 0.50% and fixed at $1934.30. The vast majority of today’s price decline was based on traders bidding the precious yellow metal lower with an extremely fractional loss from dollar strength. Currently, the dollar is up 0.06% taking the index to 103.12.

Gary S. Wagner

By

Gary Wagner

Contributing to kitco.com

Time to Buy Gold and silver

Tim Moseley

Gold decline continues after last week’s strong weekly price drop

Gold decline continues after last week’s strong weekly price drop

Prices of both spot and futures gold declined between 0.30% and 0.40% today, a direct correlation to dollar strength and higher U.S. Treasury yields. The dollar gained 0.35% in trading today taking the index to 103.05. After last week’s dramatic decline in gold, the first trading day of the week is indicating a continuation of the down-trend based on the most recent economic data.

Economic strength and continued inflation will result in a “No Landing” scenario

Last week, data showed that the U.S. CPI (Consumer Price Index) rose moderately in July. But because producer prices increased slightly more than expected, members of the Federal Reserve are expressing concerns that their fight against inflation is not over and as a result could keep rates higher for longer.

The most recent economic data shows that the economy in the United States is strong and resilient and for the most part has led the Federal Reserve and economists to believe that a recession is not likely. The new acronym for the end game from the aggressive monetary policy of the Fed is no longer a “hard landing” or a “soft landing” but a “no landing”.

The meaning behind this acronym is that economic growth that is too strong to allow inflation to fall to the Fed’s target of 2% easily, suggesting that the Fed will need an additional rate hike to secure the proper path to their 2% target.

However, according to the CME’s FedWatch tool that will not occur at next month’s FOMC meeting with an 88.5% probability that the Federal Reserve maintain its current interest rate of between 5 ¼% and 5 ½%. Investors are awaiting the next important event the release of last month’s FOMC meeting minutes on Wednesday.

As of 3:35 PM EDT, gold futures basis the most active December contract is currently trading down $6.70 or -0.35% and fixed at $1939.80. This after breaking below a key technical price level the 50-day simple moving average last week. Spot or Forex gold is currently trading -0.27% lower and fixed at $1907.80.

Dollar strength is entirely responsible for gold’s price decline today. It was certainly the major component moving gold lower. The dollar is currently up 0.32% and the index is fixed at 103.015.

On a technical basis, we could see continued downside pressure in both gold and silver as dollar strength continues to dominate price fluctuations in the precious metals. If gold prices continue to fall look at the current major support level which is between $1888 and $1906.

Gary S. Wagner

Time to Buy Gold and silver

Tim Moseley

Suspense Builds in Crypto Community as SECs Gensler Delves into AI

Suspense Builds in Crypto Community as SEC's Gensler Delves into AI 
 

The crypto-verse is truly holding its breath as Gary Gensler of the SEC shifts his gaze towards the challenges presented by artificial intelligence. In the whirlwind domain of cryptocurrencies, where values swing wildly in the blink of an eye, it's rare for a single person's actions to stir up so much speculation and excitement across the entire industry. 

Yet, that's exactly what's happening with Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC), as he zeroes in on the hurdles posed by AI. It's like a sudden plot twist in a gripping movie, keeping everyone on the edge of their seats. But the stakes are much higher this time, and the outcome could determine the destiny of an entire economic sector.

Gensler's tenure as the SEC Chair has been all about taking the reins in cryptocurrency regulation. He's brought lawsuits and investigations against significant players in the crypto field, aiming to establish more explicit guidelines and clamp down on possible fraud or deceptive practices. This bold approach marks a clear departure from the more hands-off attitudes of the past. However, just when everyone thought they had the storyline figured out, the narrative took an unforeseen twist.

Gensler, recognized for his deep understanding of financial regulation and emerging technologies, has made a surprising choice to shift the SEC's focus toward the challenges posed by artificial intelligence. This unexpected move has raised eyebrows among those in the industry and those observing from the sidelines. With the crypto market booming and regulations still a work in progress, the question arises: Why would Gensler shift his attention to a whole new frontier?

The crypto sector now stands at a crossroads, uncertain about the path ahead. With Gensler's attention toward AI, those invested in cryptocurrencies can't help but wonder how this chapter will unfold. Will it be a story of collaboration and forward movement or a tale filled with suspense and hurdles? Only time holds the key to revealing the upcoming exciting chapter in this ongoing saga.

Regulatory Concerns and the SEC

The SEC wears the hat of a regulatory guardian, ensuring that securities are handled fairly, and markets run smoothly. When it comes to the realm of cryptocurrencies, their mission extends to safeguarding investors against fraud and unethical practices. They meticulously monitor Initial Coin Offerings (ICOs) to guarantee compliance with securities laws. Think of them as the lawmen of the digital Wild West, where crypto-cowboys roam.

But the plot has taken an interesting twist. The SEC's head honcho, Gary Gensler, has unveiled a change of focus. Instead of exclusively zeroing in on cryptocurrencies, he's turning his attention to the hurdles posed by artificial intelligence (AI) in the financial arena. The US watchful regulators are now keeping tabs on the potential influence of our future robot overlords.

This shift has thrown the crypto industry into a state of suspense. What does this mean for the fate of cryptocurrencies? Will they finally break free from the chains of regulatory uncertainty, or could they find themselves overshadowed as AI takes center stage? The answer is yet to be unveiled. 

But one thing is sure: Gary's shift might divert attention and resources from overseeing cryptocurrencies. This could bring a sigh of relief to those yearning for less interference or raise eyebrows among those advocating for stricter control. The industry is undoubtedly in for some turbulence as this transformation unfolds. It's akin to riding a rollercoaster with no map of its twists and turns. 

The crypto industry has weathered many ups and downs before and is well-equipped to navigate this latest twist. It's all part of the wild and unpredictable nature that makes this industry so intriguing. Moreover, who knows the ways in which AI could revolutionize the cryptocurrency landscape? Picture self-trading coins or wallets that seem to possess a mind of their own. The potential seems boundless!

So, as we await the SEC's strategies to tackle AI challenges, let's keep our gaze fixed on the ultimate goal. Cryptocurrencies have come a long way, and their journey is far from over. As the industry matures and adapts, we'll continue to rise above whatever hurdles come our way. After all, these very challenges shape us and fuel the evolution of this exciting sector.


SEC Chair Gensler speaking before the National Press Club on July 17. Source: SEC

In his speech at the National Press Club, Gary Gensler underlined a significant truth: While the cryptocurrency arena has its fair share of issues like scams, hacks, and money laundering, the realm of artificial intelligence (AI) poses even more significant financial hazards for folks in the US and other nations. As he delved into the topic, Gary spotlighted various risks tied to the ongoing AI surge, which could shake up trillions of dollars worth of assets traded on markets overseen by the SEC.

Looking closely, Gary explains that amidst this AI boom, there's a flip side to the coin. On one hand, AI-generated investment suggestions could revolutionize the customer experience within financial institutions. Sounds promising, right? 

However, he doesn't shy away from pointing out a potential drawback. This emerging technology could also be used to blur the lines of accountability when things go wrong. If errors or failures occur, AI could be exploited to shroud responsibility.  AI-driven trading bots can potentially manipulate financial markets, particularly in unregulated sectors like cryptocurrency. This manipulation can deceive investors into buying assets at inflated prices, resulting in financial losses.

Phishing scams used to stand out due to their misspellings or grammar mistakes, but with the advent of generative AI, creating well-written emails in any language has become effortless. This technology can craft convincing messages that mimic native speakers. In simpler terms, Gary is raising a flag on the potential upsides and downsides of AI's influence on the financial world. It's like navigating a brand-new terrain where incredible opportunities and unforeseen pitfalls are equally likely. As he steers this conversation, Gary is essentially shining a light on the unknown pathways that lie ahead in the realm of AI.

Phishing scams used to stand out due to their misspellings or grammar mistakes, but with the advent of generative AI, creating well-written emails in any language has become effortless. This technology can craft convincing messages that mimic native speakers. In simpler terms, Gary is raising a flag on the potential upsides and downsides of AI's influence on the financial world. It's like navigating a brand-new terrain where incredible opportunities and unforeseen pitfalls are equally likely. As he steers this conversation, Gary is essentially shining a light on the unknown pathways that lie ahead in the realm of AI.


Image source: X [Twitter]

The Waiting Game

Gary Gensler has been quite vocal about his criticisms of the crypto world, accusing it of being filled with hackers, fraudsters, and scams. He's been attacking the industry with full force, making us all wonder what his next move would be. But then, out of nowhere, BlackRock, the giant investment firm, steps in and expresses its interest in crypto. 

They see the value and potential in Bitcoin and other cryptocurrencies. And just like that, Gary's tone changes. He suddenly shifts his focus to AI and suggests we can address the crypto world later. It's almost like that schoolyard bully who picks on a kid, only to back off when he realizes the kid has a strong older sibling to protect them. BlackRock is that older sibling defending crypto against Gary's attacks.

This turn of events is quite amusing to watch. With Gary's attention focused on AI startups, it's safe to say that those in the AI industry need to brace themselves. It seems like Gary is excited about this new direction and wants to regulate AI. As for crypto, there's a sense of relief that his aggressive attacks might lessen. 

However, remember the importance of clarity and resolution for ongoing cases. The SEC seems to be strategizing by prioritizing the current cases before moving on to new ones. After all, a win in these high-profile cases could set a legal precedent that affects the entire industry.

It is essential for the crypto community to come together and support each other in these cases. The industry can't afford to have a fragmented stance where some projects are supported while others aren't. The outcome of the SEC’s regulation against AI will impact the entire crypto industry, and it's crucial for crypto to have a strong track record. 

All the players need to understand that it's not just about supporting one project over another but rather about advocating for a fair and just resolution for all cases involving crypto. So, amid all this, we continue to watch the developments unfold. The shift from attacking crypto to focusing on AI is quite the twist, and it'll be interesting to see how it all plays out. 

The Bottom Line 

AI is making leaps and bounds in technology, with blessings and concerns in store for the cryptocurrency industry. The fusion of AI and various aspects of cryptocurrencies can make things smoother, more accurate, and super secure. Picture this: Trading strategies are automated, and fraudulent activities are identified in a snap. That's the kind of potential AI brings to the table.

But of course, there's the flip side. Cryptocurrencies' unique, decentralized, and roller-coaster nature poses a challenge for AI algorithms. Making sure these systems can keep up with the ever-shifting crypto landscape is no cakewalk. And let's not forget about the worries around privacy, data security, and biases sneaking into AI decisions. All these are real concerns that are keeping industry regulators awake at night.

Now, while the SEC's AI focus might momentarily shift away from cryptocurrency regulation, folks in the know are pretty sure it's just a temporary shift. The waiting game has begun, and everyone's busy speculating. Will we see more regulations? Will the cryptocurrency ecosystem become even more robust and secure? It's like making guesses about what's in the next plot twist.

As for how the industry is reacting to Gensler's AI interest, it's a mixed bag. Some see it as a thumbs-up, a sign that the SEC is on track with keeping up with the times and potential risks. Others have their brows furrowed, worried that too much regulation might stifle the creative spark of innovation. But no matter which side you're on, one thing's for sure: AI and cryptocurrencies are about to collide in ways that could blow our minds.

In a world that's moving faster than ever, the way to win is adaptability. As we all eagerly await the SEC's next moves, folks in the industry should gear up to be informed, ready to act, and quick on their feet. Embracing innovation while addressing valid concerns is going to be the way forward. This fusion of AI challenges and regulations promises a truly exciting future where finance and technology intertwine to change how we perceive and handle money. Get ready because it's bound to be a thrilling ride!

 

 

About: Prince Ibenne. (Nigeria) Prince is passionate about helping people understand the crypto-verse through his easily digestible articles. He is an enthusiastic supporter of blockchain technology and cryptocurrency. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.
 
 
 

 

 

 

 

 

 

Tim Moseley

Gold futures remain in uptrend with an expected Fed pause

Gold futures remain in uptrend with an expected Fed pause

The gold market did not see much of a reaction after CPI inflation cooled slightly more than expected on Thursday, followed by a mildly hotter-than-expected PPI inflation report this morning. U.S. CPI annual inflation rose 3.2%, up from 3% in June, while PPI inflation for July came in at up 0.3% from June.

Thursday’s July CPI report was slightly tamer than expected, which solidified notions the Federal Reserve will stand pat on raising interest rates at its September FOMC meeting. Traders of futures tied to the Fed's policy rate now see less than a 10% chance that the U.S. central bank will increase its benchmark overnight interest rate from its current 5.25%-5.50% range at a Sept. 19-20 policy meeting.

They had seen about a 14% chance of a rate hike next month before the tamer than expected July CPI report this week. Traders are now pricing in about a 28% chance of a rate hike by November, down from more than 30% before the release of the CPI report, with higher rates by December seen as even less likely. The Fed's first rate cut is priced into the futures contracts by March of 2024.

Just ahead of the last trading session of July, Gold Futures changed to the front month contract, which is why prices finished the month last Monday above $2000 on a monthly closing basis for the first time in history. December gold is attempting to put in a higher low at $1950 as I type this column, while the spot gold is closer to $1900. Whenever futures significantly outpace spot, prices typically converge higher.

Right on the heels of seeing a Fitch downgrade of the creditworthiness of the U. S. last week, Moody’s has downgraded ten small to medium banks across the country, citing “financial strain” and “strains that could erode their profitability.” Six more banks are under review, and another eleven have been shifted from “stable” to negative.

The U.S. banking system is failing, which has been keeping the gold price well bid above $1900 despite recent U.S. dollar strength. Moody’s noted that rising interest rates would “exacerbate” the ongoing banking crisis, and they foresee the Federal Reserve continuing with hikes for longer than anticipated since inflation was never transitory.

The Fed maintained artificially low rates for far too long, and their attempts to ease inflation by hiking rates are failing. Inflation has soared from sub 1% to peak at over 8%, but has since fallen to around 3% which is still above the Fed's desired 2% target rate.

Meanwhile, U.S. bankruptcy filings for companies with over $50 million in liabilities are exploding higher, and we have not even entered a recession. This number could shoot to all-time highs as zombie companies surviving on low-interest rates for the past decade finally shutter.

The housing and commercial real estate (CRE) markets are also wobbling and coming closer to tipping over with each Fed rate hike. Moody’s predicts a “mild recession” and particularly downgraded banks this week due to CRE troubles that may come home to roost at the banks

Specifically, CRE portfolios that could lead to more banks collapsing into a rising river of real-estate defaults that may soon sweep over the entire banking sector. Several banks have already collapsed, with more that are shaky. Although we have not had a replay of the 2008 bank crisis, it could still happen.

Furthermore, U.S. tax receipts are plunging and this rarely happens outside of a recession. As businesses and individuals make less money, they pay fewer taxes guaranteeing an economic slowdown and more deficit spending.

Last week, the Federal Reserve Senior Loan Officer Opinion survey showed a further tightening of lending conditions, which in combination with higher interest rates, will be toxic for bank lending. This is going to be a major headwind for economic activity, increasing recession risks that still cannot be ignored.

Americans have also raked in a record $17.05 trillion in debt during Q1 of 2023 alone, while falling deeper into debt with no plans for financial management. Credit card debt is at an all-time high, and the cost of borrowing continues to rise. The average credit card interest rate offered in the U.S. over the last three months of 2022 stood at 21.6%, according to WalletHub, a jump from about 18% a year prior

The rise in credit card rates is attributed to the most aggressive series of interest rate hikes imposed by the Federal Reserve in over 40 years. The increase in credit card balances is a cause for concern, as it could lead to a rise in defaults and adds more risk to a potential recession.

The yield curve of 2-year–10-year and 3-month–10-year remain hugely inverted. The inverted yield curve has predicted a U.S. recession 100% of the time since the 1970s. But historically, recession's do not come until roughly 6–12 months after the inversion bottoms. The gold price has risen 20% on average during past recessions.

In the lead-up to the BRICS summit taking place in Johannesburg on August 22-24, there have been conflicting reports about whether a gold-backed currency is going to be discussed. Although BRICS has been looking at a currency backed by gold, the more immediate goals for the BRICS bloc are to sidestep the SWIFT system with the ability to avoid Western sanctions.

Both China and Russia have been working on an alternative to SWIFT, as well as institutions to challenge the U.S.-dominated IMF and World Bank. Nonetheless, this does not mean the immediate demise of the U.S. dollar as the world’s reserve currency, as there is no obvious successor.

The U.S. dollar remains at least 60% of global reserves, while the U.S. continues to have the deepest and largest capital markets in the world. Nevertheless, BRICS and its plan does pose a potential threat to the U.S. and to the U.S. dollar.

In the meantime, eastern central banks continue to add more gold to their reserves led by both Russia and China. Russia’s finance ministry announced late last week that it would start buying currencies and gold again in August after 18 months of selling or sitting on the sidelines as Moscow looks to profit from recent high oil prices.

The People’s Bank of China (PBOC) bought more gold in July, pushing its current shopping spree to nine consecutive months. Bullion held by the PBOC rose by 740,000 troy ounces, the central bank said on Monday, which is equivalent to about 23 tons. Total stockpiles now sit at 2,137 tons, with around 188 tons added in a run of purchases that began in November.

Although China has become a leading buyer in the precious metal market, many feel the central bank of the world's second largest economy is just getting started. Like many other non-western countries, China wishes to continue reducing its U.S Treasury holdings, with physical gold being the greenback's natural substitute.

Despite Gold Futures closing above $2000 on a monthly basis, the continued relative weakness of both silver and the miners warns of a possible re-test of the $1900 level during the last few weeks of typical precious metals summer doldrums. Sentiment remains low for the entire sector. If the gold price is gearing up for a fourth attempt to breakout above $2100, it is important that silver and the miners begin to lead the way for the move to be sustainable.

In anticipation of the incredible gains the junior sector should begin to experience once the gold price prints a technical breakout above $2100, the Junior Miner Junky (JMJ) newsletter has accumulated a basket of quality juniors with 3x-10x upside potential into 2025-26.

By

David Erfle

Contributing to kitco.com

Time to Buy Gold and silver

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