Some things are better some stay the same – Lundin Group’s Adam Lundin on mining gaining favor

Some things are better, some stay the same – Lundin Group's Adam Lundin on mining gaining favor

Governments are more responsive but some organizational issues persist, said Lundin Group chair Adam Lundin when asked if mining is any easier due to the sector gaining favor due to energy transition.

Lundin spoke to Kitco mid-September at the Canadian Securities Exchange office in Vancouver, B.C.

The Lundin Group has a controlling stake in a number of miners and juniors, such as Lundin Mining, Lundin Gold and Filo. All are up sharply over the past year, countering a tough commodity market.

Governments in the Americas and Europe have been more supportive of mining to ensure a flow of critical minerals needed for electric vehicles. Lundin noticed some benefits.

"You can get access to government officials and people you need to talk to. That's extremely helpful," said Lundin. "At the same time I still find the U.S. very challenging when it comes to permitting. You have a bunch of agencies saying let's support the metals business, but they're not necessarily all talking with each other. It still takes time to get that permit."

Lundin is re-organizing the businesses geographically. Energy and renewable business will be run out of Geneva. Mining businesses will be located in Vancouver.

"What we're really trying to establish is a center of excellence," said Lundin, noting that business challenges can be tackled more effectively as a group. "It's easier when you're all in the same town."

Lundin said the junior sector is tough.

"I admire and respect everybody who wants to have a go at it," said Lundin. "It takes deep pockets, and if you miss the cycle, it can be tough. Make sure you cater to your shareholders and local communities. You can have success but obviously exploration is a challenging game."

Kitco Mining’s coverage of the Precious Metals Summit 2023 was sponsored by Newcore Gold.

  Lawrence Lepard, founder of Equity Management Associates, on why gold companies have performed poorly

By

Michael McCrae

For Kitco News

Time to Buy Gold and Silver

 

Tim Moseley

The Benefits of Joining Markethivecom: Free Marketing Tools for Your Success

The Benefits of Joining Markethive.com: Free Marketing Tools for Your Success

MARKETHIVE

Markethive.com is a powerful platform that provides entrepreneurs with a range of free marketing tools to help them grow their businesses. These tools are designed to help users create and manage effective marketing campaigns, build their online presence, and connect with potential customers. When you join Markethive, you get access to a variety of free marketing tools that can help you take your business to the next level.

One of the key benefits of joining Markethive is the range of free marketing tools that are available to users. These tools include everything from email marketing and social media management to lead generation and analytics. By using these tools, entrepreneurs can create and manage effective marketing campaigns that reach their target audience and drive sales.

In addition to the free marketing tools that are available on Markethive, users also benefit from the platform's unique business model. Markethive operates on a decentralized blockchain system, which means that users have greater control over their data and their marketing campaigns. This model also allows users to earn cryptocurrency rewards for their contributions to the platform. Overall, Markethive is an excellent platform for entrepreneurs who want to grow their businesses and take advantage of the latest marketing tools and technologies.

Key Takeaways

  • Markethive.com offers a range of free marketing tools to help entrepreneurs grow their businesses.
  • By joining Markethive, users can take advantage of a unique decentralized blockchain system that provides greater control over their data and marketing campaigns.
  • Markethive's business model allows users to earn cryptocurrency rewards for their contributions to the platform.

Understanding Markethive

ecosystem for entrepreneurs

What is Markethive

Markethive is an ecosystem for entrepreneurs that offers free online marketing tools to help businesses build their online presence. The platform is built on blockchain technology and combines the power of LinkedIn, Marketo, and Amazon. The primary goal of Markethive is to empower entrepreneurs with the tools they need to succeed in the digital world.

Markethive offers a range of free marketing tools, including a social media platform, email marketing, blogging platform, and more. Users can also access advanced features by upgrading to a paid membership. The platform is designed to be user-friendly, making it easy for entrepreneurs to create and manage their online presence.

The Concept of Infinity Airdrop

Markethive's Infinity Airdrop is a unique concept that rewards users for their participation on the platform. The airdrop rewards users with Markethive's cryptocurrency, MHV, for their daily activity on the platform. This includes activities like logging in, creating content, sharing content, and more.

The Infinity Airdrop is designed to be a sustainable way to reward users for their participation on the platform. The airdrop is funded by Markethive's advertising revenue, which means that as the platform grows, so does the airdrop. This creates a self-sustaining ecosystem where users are rewarded for their participation, and the platform benefits from increased engagement.

Overall, Markethive is a powerful platform that offers entrepreneurs the tools they need to succeed in the digital world. With its range of free marketing tools and unique Infinity Airdrop concept, Markethive is a must-try for any entrepreneur looking to build their online presence.

Free Tools Available on Markethive

Markethive is an all-in-one inbound marketing platform that provides entrepreneurs with an array of free marketing tools to help them build their online business. Here are some of the free tools that are available on Markethive:

Email Address

One of the most important tools provided by Markethive is a free email address. With this email address, entrepreneurs can send and receive emails from their customers and prospects. The email address is also integrated with the Markethive platform, which means that entrepreneurs can manage their email campaigns directly from the platform.

Content Creation

Markethive provides entrepreneurs with a suite of content creation tools that they can use to create high-quality content for their website or blog. These tools include a blog platform, a content management system, and a content creation wizard. The content creation wizard is particularly useful for entrepreneurs who are new to content creation, as it provides step-by-step guidance on how to create effective content.

Broadcasting Tools

Markethive also provides broadcasting tools that entrepreneurs can use to promote their content and engage with their audience. These tools include a social media broadcasting platform, a press release platform, and a video broadcasting platform. With these tools, entrepreneurs can reach a wider audience and build their brand.

Image Management

Finally, Markethive provides entrepreneurs with an image management tool that they can use to manage their images and graphics. This tool allows entrepreneurs to upload, edit, and store their images in one central location. They can also use the tool to resize and optimize their images for different platforms.

In conclusion, Markethive provides entrepreneurs with a range of free marketing tools that they can use to build their online business. These tools cover everything from email marketing to content creation, broadcasting, and image management. With these tools, entrepreneurs can create a strong online presence and grow their business.

Benefits of Joining Markethive

Markethive is a social marketing platform for entrepreneurs that offers a range of free marketing tools to help businesses grow. Here are some of the benefits of joining Markethive:

Lead Generation

Markethive offers a range of tools that can help businesses generate leads. For example, the platform offers a viral blogging system that allows businesses to create and publish content that can be shared across social media platforms. This can help businesses attract new customers and build their brand.

In addition, Markethive offers a powerful email marketing system that can help businesses reach out to potential customers and build relationships with them over time. The platform also offers a range of other lead generation tools, such as a list building system and an internal capture page system.

Professional Life Enhancement

Markethive is not just a platform for generating leads and marketing products. It is also a community of like-minded entrepreneurs who are dedicated to helping each other succeed. By joining Markethive, businesses can connect with other entrepreneurs, share ideas, and learn from each other.

Markethive also offers a range of educational resources that can help entrepreneurs improve their skills and knowledge. For example, the platform offers a series of training videos on topics such as social media marketing, SEO, and email marketing.

Entrepreneurial Opportunities

Markethive is more than just a marketing platform. It is also a marketplace where businesses can buy and sell products and services. By joining Markethive, businesses can tap into a network of potential customers and partners, and expand their reach.

In addition, Markethive offers a range of entrepreneurial opportunities, such as the ability to earn cryptocurrency by participating in the platform's Infinity Airdrop program. This program rewards members with a valuable set of coins to begin their membership in the Hive, and members can earn additional coins daily.

Membership Rewards

Markethive offers a range of membership rewards that can help businesses save money and grow their bottom line. For example, the platform offers a free inbound marketing system that includes a range of tools such as a viral blogging system, an email marketing system, and a list building system. This can help businesses save money on marketing expenses, and focus on growing their business.

In addition, Markethive offers a range of other membership rewards, such as free advertising credits, free banner impressions, and free press release distribution. By taking advantage of these rewards, businesses can increase their visibility and reach a wider audience.

Markethive's Business Model

Markethive is a social marketing platform for entrepreneurs that offers a variety of free marketing tools. But how does Markethive make money? In this section, we will explore Markethive's business model.

ecosystem for entrepreneurs

Incentive Loyalty Program

Markethive's business model is based on an Incentive Loyalty Program (ILP). This program rewards members for their participation in the platform. Members earn ILP shares, which are similar to stock options, by using Markethive's tools and services. The more a member uses Markethive, the more ILP shares they earn.

ILP Shares

ILP shares represent ownership in Markethive. As the value of Markethive increases, so does the value of ILP shares. Members can earn up to 100,000 ILP shares, which can be sold or traded on the open market.

Matching Bonuses

Markethive also offers a matching bonus program. This program rewards members for referring new members to the platform. Members earn a percentage of the ILP shares earned by the people they refer. The more people a member refers, the more matching bonuses they earn.

In conclusion, Markethive's business model is based on an Incentive Loyalty Program that rewards members for using the platform and referring new members. Members earn ILP shares, which represent ownership in Markethive, and can earn matching bonuses for referring new members. This business model allows Markethive to grow and succeed while rewarding its members for their participation.

Comparing Markethive with Other Platforms

Markethive vs LinkedIn

LinkedIn is a social media platform that is primarily used for professional networking. Markethive, on the other hand, is an ecosystem for entrepreneurs that provides a wide range of free marketing tools. While LinkedIn is a great platform for building professional connections, it does not offer the same level of marketing tools as Markethive.

Markethive provides its users with a suite of free marketing tools, including a blogging platform, social media broadcasting, and email marketing. These tools are specifically designed to help entrepreneurs and small business owners grow their businesses. In addition, Markethive provides its users with a community of like-minded individuals who are all working towards the same goal of growing their businesses.

Markethive vs Marketo

Marketo is a marketing automation platform that is designed for enterprise-level businesses. While Marketo is a powerful tool, it can be expensive and complex to use. Markethive, on the other hand, provides a suite of free marketing tools that are designed for small business owners and entrepreneurs.

Markethive's free marketing tools include a blogging platform, social media broadcasting, and email marketing. These tools are easy to use and are specifically designed to help small businesses grow. In addition, Markethive provides its users with a community of like-minded individuals who are all working towards the same goal of growing their businesses.

Markethive vs Amazon

Amazon is an online marketplace that is primarily used for buying and selling products. While Amazon does offer some marketing tools, such as advertising and product listings, it is not a comprehensive marketing platform like Markethive.

Markethive provides its users with a suite of free marketing tools that are designed to help entrepreneurs and small business owners grow their businesses. These tools include a blogging platform, social media broadcasting, and email marketing. In addition, Markethive provides its users with a community of like-minded individuals who are all working towards the same goal of growing their businesses.

Overall, Markethive provides a comprehensive set of free marketing tools that are specifically designed for small business owners and entrepreneurs. While other platforms may offer some marketing tools, they are not as comprehensive or as easy to use as Markethive's tools.

How to Join Markethive

Registration Process

To join Markethive, users need to visit the website and fill out the registration form. The form requires users to provide their name, email address, and create a username and password. Once the form is submitted, users will receive an email confirmation with a link to activate their account.

It is important to note that Markethive is a free platform, and users do not need to provide any payment information during the registration process. However, users can choose to upgrade their account to access additional features and benefits.

Understanding the User Interface

After registering, users will be directed to the Markethive dashboard. The user interface is designed to be user-friendly and easy to navigate. The dashboard provides users with access to all the free marketing tools available on the platform.

Users can create a profile, join groups, and connect with other entrepreneurs. The platform also includes a blogging system, where users can publish their own content and share it with the Markethive community.

In addition, Markethive provides users with access to a range of inbound marketing tools, including email marketing, social media broadcasting, and lead capture pages. These tools are designed to help users generate leads and build their online presence.

Overall, joining Markethive is a simple process that provides users with access to a range of free marketing tools and resources. The platform is designed to help entrepreneurs build their businesses and connect with like-minded individuals in a collaborative and supportive environment.

Conclusion

In conclusion, joining Markethive.com provides entrepreneurs with a wealth of free marketing tools that can help them grow their businesses. By becoming a member, entrepreneurs can access a variety of features that can help them generate leads, create content, and build their professional networks.

One of the key benefits of joining Markethive.com is the ability to earn coins and ILP shares. These can be used to fund business ventures, and can also be exchanged for other cryptocurrencies. Additionally, members can participate in airdrops and matching bonuses, which can help them earn even more coins.

Another benefit of joining Markethive.com is the ability to create a professional profile and connect with other entrepreneurs. Members can also create pages, post content, and share images and videos with their associates. This can help them build their brand and attract new customers.

Markethive.com also offers a range of marketing tools, including email marketing, broadcast messaging, and loyalty programs. These can help entrepreneurs reach new audiences and build customer loyalty. Additionally, the platform provides regular updates and news to keep members informed about the latest trends and developments in the industry.

Overall, Markethive.com is a valuable resource for entrepreneurs who want to grow their businesses and take their professional lives to the next level. Whether you're a seasoned entrepreneur or just starting out, joining Markethive.com can help you achieve your goals and build the business of your dreams.

Frequently Asked Questions

What are the free marketing tools available at Markethive.com?

Markethive.com offers a variety of free marketing tools to its members. These tools include a blogging platform, email autoresponders, social media broadcasting, SEO tools, and more. Members also have access to a community of like-minded entrepreneurs who can provide support and guidance.

How do the free marketing tools at Markethive.com benefit me?

The free marketing tools at Markethive.com can benefit you in many ways. For example, the blogging platform can help you establish yourself as an authority in your niche, while the email autoresponders can help you build a list of leads. The social media broadcasting tools can help you reach a wider audience and increase your brand awareness. The SEO tools can help you optimize your content for search engines and improve your website's rankings.

ecosystem for entrepreneurs

Can I access the free marketing tools at Markethive.com without logging in?

No, you need to be a member of Markethive.com to access the free marketing tools. However, membership is free and easy to sign up for.

What are the benefits of joining Markethive.com?

Joining Markethive.com can provide you with a range of benefits. These include access to free marketing tools, a supportive community of entrepreneurs, and the opportunity to earn cryptocurrency through the platform's reward program. Markethive.com also offers training and educational resources to help you grow your business.

How can I join Markethive.com?

To join Markethive.com, simply visit the website and sign up for a free account. Once you have created an account, you will have access to all of the platform's free marketing tools.

Are there any costs associated with using the free marketing tools at Markethive.com?

No, all of the marketing tools at Markethive.com are completely free to use. However, the platform does offer premium services for those who want to take their marketing efforts to the next level.

Tim Moseley

Economic risks supporting gold in neutral territory around 1950

Economic risks supporting gold in neutral territory around $1,950

Federal Reserve chair Jerome Powell maintained his hawkish bias this week, saying that interest rates will have to remain in restrictive territory for the foreseeable future; however, the gold market remains firmly in neutral territory as uncertainty supports the precious metal.

Some analysts have said that gold has been able to withstand the Fed's posturing as risks for the global economy grow.

"Consumers are spending the last of their savings and higher interest rates will start to take their toll," said Ed Moya, senior market analyst at OANDA. "We think it's only a matter of time before we see a weaker economy, and that will not be good news for the U.S. dollar."

Heading into the weekend, December gold prices last traded at $1,944.90 an ounce, roughly unchanged from last Friday. Although gold is caught in a tight trading range, it has held firm against major headwinds as the 10-year bond yield pushed to a fresh 16-year higher at 4.5%. At the same time, the U.S. dollar is ending the week at its highest level since November 2022.

Ole Hansen, head of commodity strategy at Saxo Bank, said in his weekly commentary that economic uncertainty continues to support gold as a safe-haven asset.

"We conclude that the breakdown in normal correlations is likely due to a market in search of a hedge against the FOMC failing to deliver a soft as opposed to a hard landing, or even stagflation," he said.

Although gold is holding its ground, analysts have said it will be difficult for prices to rally in the current environment.

Carsten Fritsch, precious metals analyst at Commerzbank, noted that the rise in U.S. bond yields has pushed real yields 50 basis points higher compared to last month. He added that this is taking a toll on investment demand as investors liquidate positions in gold-backed exchange-traded products.

"Last week alone, they sold holdings totaling 16 tons," he said. "Holdings in the world's largest and most liquid gold ETF have meanwhile dropped to their lowest level since January 2020."

However, Fritsch also sees long-term bullish potential for the precious metal when sentiment starts to shift.

  Gold investment potential remains healthy despite Fed's hawkish stance – State Street's Milling-Stanley

"Net longs have plummeted by almost 75% within the past four reporting weeks," he said. "Against this backdrop, gold will doubtless find it difficult to come out of the defensive in the near future. That said, sentiment is now already so bearish that it wouldn't take much to spark a price recovery."

As for what could spark a new rally in gold, Daniel Ghali, senior commodity strategist at TD Securities, said investors should pay close attention to the data.

He added that disappointing GDP data will create fears that the U.S. economy could be in for a hard landing.

Markets will also be sensitive to further inflation data as the Personal Consumption Expenditures Index will be released on Friday.

Last week to visit a national park?

Along with economic data, some analysts have said that gold could attract some safe-haven demand as the U.S. government faces a potential shutdown as Congress has been unable to approve funding for the fiscal year starting Oct. 1.

Although a shutdown wouldn't impact the nation's sovereign debt, it would affect how it could conduct business domestically. Government employees would be furloughed.

Markets could be impacted as the Securities and Exchange Commission and the Commodity Futures Trading Commission would have to furlough most of their employees.

National parks and museums would also be closed during the shutdown.

Kristina Hooper, chief investment officer at Invesco, said that while economic growth might not be impacted in a short-term shutdown, it does increase uncertainty.

She added that it also brings attention to the United States' growing debt problem. The U.S. deficit has already exceeded $1.5 trillion in the 12 months to October of this year.

"Any concerns about the government's ability to handle its growing deficit is a positive for gold," she said.

Next week's data:

Tuesday: U.S. Consumer Confidence, new home sales

Wednesday: Durable goods

Thursday: Final GDP reading, weekly jobless claims, pending home sales, Jerome Powell speaks at Washington DC town hall event

Friday: Personal Income and Spending

By

Neils Christensen

For Kitco News

Time to Buy Gold and Silver

Tim Moseley

Gold is well-positioned for when the Fed breaks something

Gold is well-positioned for when the Fed breaks something

The gold market may not be able to break out of its neutral trading channel around $1,950 just yet, but it is well positioned to benefit when sentiment turns, which could be sooner than some are expecting.

Yes, the U.S. has been able to avoid a recession and expectations of a soft landing continue to grow; however, many analysts remain doubtful that this optimistic goal can be achieved.

For many analysts, gold’s price action proves that investors are taking a more cautious stance to protect themselves against a downturn.

Gold’s position is even more impressive when you look at what it faced this week. Although the Federal Reserve did not raise interest rates on Wednesday, it maintained its hawkish bias. Federal Reserve Chair Jerome Powell said that although the interest rates are close to a peak, the central bank will keep interest rates at restrictive levels for the foreseeable future.

He added that the central bank will only know when rates are sufficiently restrictive when they see it.

The biggest surprise for many economists in this week’s decision is that the central bank sees only two potential rate cuts next year, down from the four rate cuts projected in June. This fits the growing “higher-for-longer” narrative that is building.

The Fed’s stance pushed 10-year bond yields to a fresh 15-year high at 4.5%. At the same time, the U.S. dollar index pushed above 105 points to its highest level since November 2022. Analysts at Commerzbank noted that real yields have reached 2%, an increase of 50 basis points from last month.

Despite all this, gold continues to hold around $1,950 an ounce, which has become an important psychological level.

In an interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said that gold remains an important portfolio diversifier as the Fed continues to put pressure on the economy to cool down inflation.

  Economic risks supporting gold in neutral territory around $1,950

"At the start of the year, I said that equity markets have more to fear from the Fed than gold does, and I still believe that," he said. "Yes, the economy has been very resilient so far this year, but Powell said on Wednesday that they still need below-trend growth to get inflation down to the 2% target. Investors should believe Powell when he says that, because he means it."

And it’s not just the Federal Reserve that is entering the end game. The Swiss National Bank, the Bank of England, and the Bank of Japan also left interest rates unchanged this week.

Both the SNB and the BOE said that they are close to getting inflation under control as economic growth starts to weaken. Gold performed well against both currencies after their monetary policy decisions.

Although the gold market lacks momentum while investors sit on the sidelines, Milling-Stanley noted that there is still significant growth potential in the marketplace. This week State Street released an update to its gold investor survey published in June. The updated analysis looked at the role financial advisors can play in developing the gold market.

The survey showed that 20% of respondents said they held some gold. In further analysis, the report said that roughly one-third of investors didn't invest in gold because they didn't know enough about how to invest in the precious metal.

"The main message from the analysts is that the future of gold investment seems to be safe. That is very, very good news," said Milling-Stanley.

Finally, let’s not forget central bank demand continues to provide a solid base. Analysts at The World Gold Council reported that Russia’s central bank bought 3 tonnes of gold last month, and Russia’s gold reserves are now back to their 2022 levels.

That is it for this week, have a great weekend.

By

Neils Christensen

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold investment potential remains healthy despite Fed’s hawkish stance – State Street’s Milling-Stanley

Gold investment potential remains healthy despite Fed's hawkish stance – State Street's Milling-Stanley

Although the gold market is suffering from a lack of momentum, the precious metal's investment potential remains healthy, with plenty of potential to grow, according to one market strategist.

In an interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said that the key to growing investment demand could be further education on the benefits of holding gold as part of a diversified portfolio.

He added that despite the lack of momentum, gold's ability to hold solid support above $1,900 is a strong signal that the market is poised for a new uptrend when momentum picks up.

Milling-Stanley's optimistic comments on gold come as State Street releases an update to its gold investor survey published in June. The updated analysis looked at the role financial advisors can play in developing the gold market.

The survey showed that 20% of respondents said they held some gold. In further analysis, the report said that roughly one-third of investors didn't invest in gold because they didn't know enough about how to invest in the precious metal.

The survey also showed how important an advisor's role is when it comes to bringing investors into the gold market. According to the analysis, 91% of respondents who own gold ETFs indicated they were informed by their financial advisor about the different ways to invest in gold.

"The main message from the analysts is that the future of gold investment seems to be safe. That is very, very good news," said Milling-Stanley. "There is a job for the industry at large to do in terms of educating investors and potential investors."

Milling-Stanley said he expects investment demand in gold to pick up as investors realize the value it creates for a portfolio. He noted that despite gold's lackluster performance so far this year, the market has built a solid base more than $200 above last year's lows.

Gold has struggled to attract investor attention as the Federal Reserve has aggressively raised interest rates to 5.25%. Wednesday, the Federal Reserve left interest rates unchanged; however, Central Bank Chair Jerome Powell signaled that interest rates could remain in restrictive territory longer than anticipated.

  Gold shining against Swiss franc and British pound as both central banks leave rates unchanged

Although interest rates are expected to remain higher or longer, Milling-Stanley said it is not a significant threat to the gold rally, because Wednesday's decision is providing little new momentum for the U.S. dollar.

Milling-Stanley added that gold can still outperform against the U.S. dollar if equity markets start to weaken as the Federal Reserve's stance takes its toll on economic activity.

"At the start of the year, I said that equity markets have more to fear from the Fed than gold and I still believe that," he said. "Yes, the economy has been very resilient so far this year, but Powell said on Wednesday that they still need below trend growth to get inflation down to the 2% target. Investors should believe Powell when he says that because he means it."

Milling-Stanley said that despite the Federal Reserve's aggressive actions, core inflation, which strips out volatile food and energy prices, has only fallen 1% from its peak.

"I don't expect we will see a recession, but investors should prepare themselves for a period of slower growth and gold can provide some diversification in this environment," he said.

By

Neils Christensen

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold prices holding around 1950 as Powell remains hawkish but markets see no more rate hikes

Gold prices holding around $1,950 as Powell remains hawkish, but markets see no more rate hikes

The gold market has given back some of Wednesday's gains and prices are testing initial support around $1,950 an ounce after Federal Reserve Chair Jerome Powell said the Federal Reserve is prepared to hold interest rates at an elevated level for longer than expected to get inflation back down to its 2% level.

In a much-anticipated decision, the Federal Reserve on Wednesday announced that it would leave interest rates unchanged in a range between 5.25% and 5.50%. However, Powell maintained his hawkish bias, saying that a rate hike is still on the table at either the November or December monetary policy meetings.

However, he added that monetary policies will have to remain restrictive for the foreseeable future regardless of one last rate hike. The central bank remains committed to bringing inflation down to its 2% target, he said.

"We are fairly close to where we want to be," Powell said in the press conference following the central bank's decision. "We need to see convincing evidence that we are reaching our goals. The worst thing we can do is not restore price stability. It would be a miserable period."

The question for many investors is how long will the Federal Reserve maintain interest rates at these elevated levels. Powell said that it is too soon to tell if rates are restrictive enough and have been for long enough.

"You will only know when rates are sufficiently restrictive when you see it," he said. "The time will come when it will be appropriate to cut rates, but we don't know when that will be."

Although Powell maintains his hawkish bias, the gold market appears to be taking the latest monetary policy decision in stride. Gold has fallen from its session highs, last trading at $1,952 an ounce, roughly unchanged on the day.

According to some analysts, despite Powell's hawkish posturing, gold is holding its own as markets see only a 50/50 chance of one more rate hike this year.

"Gold is holding up nicely despite a hawkish skip as the risks that the economy will break are growing. Higher for longer has been mostly priced in for gold, but eventually bad news for the economy will lead to safe-haven flows for gold," said Edward Moya, senior market analyst at OANDA, in a note.

 Rising debt and debased currency will push gold prices to record highs – AuAG Funds' Eric Strand

Paul Ashworth, chief North American economist at Capital Economics, continues questioning the Federal Reserve's stance as it increased its economic outlook for this year and 2024.

"If the Fed is right about the economic outlook, then rates can unquestionably stay higher for longer. We just don't believe those forecasts. The real economy will be considerably weaker and, regardless, core inflation is going to fall back to target much more quickly. Under those circumstances, we still expect the Fed to leave rates unchanged over the remainder of this year and to cut rate cuts by closer to 200bp next year," he said in a note following the central bank announcement.

Thomas Simons, economist at Jefferies, said that he also doesn't expect the Fed to raise interest rates anymore this year and sees potential easing in early 2024.

"We have not changed our expectations for policy based on today's Fed communication. We still expect that 5.375% will prove to be the terminal rate in this cycle, and that the Fed will have to cut more aggressively in the first half of 2024 than what is priced into the market (nearly a 30% chance of another hike at the next meeting), or described in their dot plot," he said.

By

Neils Christensen

For Kitco News

Time to Buy Gold and silver

Tim Moseley

China lifts gold import limits after yuan recovers lowering local gold premium

China lifts gold import limits after yuan recovers, lowering local gold premium

China’s central bank, the People’s Bank of China (PBoC), has lifted the temporary limits on gold imports that were aimed at supporting the renminbi, but which caused the local price of gold to skyrocket.

The spread between the spot price of gold in Shanghai and in London hit a record $121 per ounce last Thursday, but narrowed to $76 on Monday after the PBoC relaxed its import limits on the precious metal last week. Sources told the Financial Times that the central bank issued an informal order to some state and midsized commercial banks on Friday that the limits had been lifted.

In August, the PBoC decided to cut existing quotas and stop issuing new quotas to banks for the importation of international gold in an attempt to slow the surge in domestic gold purchases after the renminbi fell to its lowest level against the dollar in 16 years. The gap in the gold price had been steadily widening since early July, with industry insiders saying the rising premium was partially due to the curb on gold imports.

Last week, China’s central bank issued a strong statement warning currency traders against shorting the renminbi. “We will act when we act, resolutely correcting one-sided speculation,” the central bank said.

Local traders claimed the rhetoric from the PBoC was much stronger than usual and noted that state-run banks were more active than usual in exchanging U.S. dollars for renminbi on Monday.

The currency has come off its recent lows and is currently trading around Rmb 7.2938 against the greenback at the time of writing.

China’s central bank has itself been among the most active purchasers of gold this year, buying up 126 tonnes of gold through July. In August, analysts at BMO Capital Markets said they believe PBoC purchases are even higher than the reported numbers and could continue for years to come.

"Our analysis would certainly suggest that above-ground reserves of gold in China, both privately owned and those owned by the central bank, are significantly higher than annual consumer demand and official purchases might suggest," said Rory Townsend and Colin Hamilton, the authors of the report. "However, given the geopolitical backdrop and concerns over U.S. dollar dominance, we view further net additions to gold holdings as highly likely."

Currently, the People's Bank of China (PBoC) has the seventh largest gold reserves in the world at 2,113.50 tonnes, representing about 3.8% of total reserves. Analysts have speculated that the central bank is looking to increase its gold holdings to at least 5% of total reserves.

"At today's gold prices, this would require an additional 638t of PBoC purchases above current stated holdings," the analysts said.

In comparison, the U.S. has the world's largest gold reserves at 8,133.50 tonnes, representing 68.2% of total reserves.

By

Ernest Hoffman

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold will fall to 1800 by year-end as inflation eases while the US economy grows – Capital Economics

Gold will fall to $1800 by year-end as inflation eases while the U.S. economy grows – Capital Economics

Gold is expected to fall to $1,800 per ounce by the end of the year as the US economy continues to grow and inflation pressures ease, according to analysts at Capital Economics.

“Since rising to around $2,000 per ounce on safe-haven demand (due to concerns about the stability of banks in the US and Europe) in March-May this year, the price of gold has fallen,” the analysts said in a recent report. “According to the World Gold Council, global demand for gold fell by about 5% y/y in the first half of this year, mostly due to lower investor demand via exchange traded funds,” while the gold supply increased slightly.

Capital Economics is forecasting more demand declines for the precious metal, “owing to an unwinding of investor demand for gold as a hedge against a severe economic downturn and high inflation,” they said. “This is because we expect the US economy to contract only marginally in the fourth quarter, before recovering next year.” They’re also forecasting that U.S. inflation will drop closer to the Federal Reserve’s 2% target by the middle of 2024.

“Admittedly, our US economic outlook is consistent with investor interest rate expectations falling,” they wrote. “However, we think that the downward pressure on investment demand from a ‘soft landing’ in the US will more than offset any upward pressure stemming from lower interest rate expectations.”

The analysts noted that gold prices have been “remarkably resilient” since the start of 2022 even as long-term real interest rates have risen sharply. “We suspect that one reason for this is that investors, after building up their ETF holdings of gold to record levels during the pandemic, were reluctant to reduce them when interest rates rose.

“This makes sense given that there has been a lot of uncertainty surrounding the economic outlook,” they said.

They also expect that the combination of high gold prices and the weakness of the Chinese and Indian currencies in U.S. dollar terms will continue to weigh on gold demand for jewelry through the second half of this year after it fell by 1% year-over-year in H1.

“Finally, the historically high gold price should continue to incentivise supply, too,” they said. “So, overall, we forecast that the gold price will fall from around $1,918/0z today to $1,800/0z by year-end.”

By

Ernest Hoffman

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Price rebounds for gold silver to end trading week

Price rebounds for gold, silver to end trading week

Gold and silver prices are higher in early U.S. trading Friday, on corrective bounces and short covering after both markets hit multi-week lows on Thursday. December gold was last up $7.70 at $1,940.40 and December silver was up $0.436 at $23.44.

Asian and European stocks were mostly higher overnight. U.S. stock indexes are pointed to mixed openings when the New York day session begins.

In overnight news, China again eased its monetary policy by cutting a short-term lending rate, one day after lowering the reserve requirement ratio for banks. Some slightly better economic data on Friday prompted this Wall Street Journal headline: "China data show signs of fragile economic recovery."

The key outside markets today see the U.S. dollar index weaker after hitting a six-month high on Thursday. Nymex crude oil prices are slightly higher and trading around $90.50 a barrel. Prices hit a 10-month high overnight. The benchmark U.S. Treasury 10-year note yield is presently fetching 4.33%.

  Gold price to hit $5,000 in 3 years, watch the default wave kick off a U.S. recession in Q4 – Michael Lee

U.S. economic data due for release Friday includes the Empire State Manufacturing survey, import and export prices, industrial production and capacity utilization, and the University of Michigan consumer sentiment survey.

Technically, the gold futures bears have the firm overall near-term technical advantage. Prices are trending lower again. Bulls' next upside price objective is to produce a close in December futures above solid resistance at this week's high of $1,954.60. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the August low of $1,913.60. First resistance is seen at $1,947.50 and then at $1,954.60. First support is seen at today's low of $1,931.20 and then at this week's low of $1,921.70. Wyckoff's Market Rating: 3.0

The silver bears have the firm overall near-term technical advantage. Silver bulls' next upside price objective is closing December futures prices above solid technical resistance at $24.50. The next downside price objective for the bears is closing prices below solid support at $22.00. First resistance is seen at $23.75 and then at $24.00. Next support is seen at $23.00 and then at this week's low of $22.555. Wyckoff's Market Rating: 3.0.

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By

Jim Wyckoff

For Kitco News

Time to Buy Gold and silver

Tim Moseley

Gold will benefit from weaker USD rising investment flows in 2024 – ANZ Research

Gold will benefit from weaker USD, rising investment flows in 2024 – ANZ Research

Even after briefly falling below $1900 an ounce amid surging Treasury yields and a six-month high in the US Dollar Index, gold has remained resilient, which bodes well for the precious metal’s price trajectory as demand improves, according to analysts at ANZ Research.

“USD strength is likely to wane in 2024,” they wrote in a recent report. “While we think appreciation in the USD will sustain to year-end, firmer expectations of rate cuts and slowing economic growth momentum will see the USD resuming its downward trajectory next year. This will be a tailwind for gold.”

The analysts said they also expect investment flows to improve. “Gold’s investment appeal will increase with increasing macroeconomic uncertainty and growing expectations of monetary easing into 2024,” they said. “Sustained higher interest rates could increase stress on corporate debt, which would have negative implications for economic growth.”

ANZ pointed out that so far in 2023, “investors have liquidated 130t of strategic investments (ETF gold holdings),” with Europe and North America leading the outflows driven by their tightening monetary policies. They noted that Asia has seen inflows of 9.1t this year, including 6t in August alone. “A weakening CNY and lower consumer confidence is driving fund flows in gold,” they said. “Weaker JPY also supported ETF flows for the region.”

The analysts said that retail investment is also picking up. “US gold coin sales rose to 85,500oz in August, according to a World Gold Council (WGC) report,” they wrote. “Chinese retail investments are gaining momentum too, amid weakening CNY and volatile equity markets.”

Looking at futures and options, the ANZ analysts said that net-long positions are at six-month lows, but this could actually be a positive for prices going forward. “A lean speculative position leaves limited room for a material sell-off,” they noted.

They also expect to see the recent trend of gold purchases by central banks to continue. “Geopolitical tension is driving a structural shift in central bank purchases,” they said. “We expect demand to be buoyant at 750t for 2023 but not to match the record 1,080t of 2022.”

Demand for physical gold is expected to improve as well in the fourth quarter of the year, “while weak currency and a fall in consumer confidence in China should boost retail investment,” they said. “China’s gold spot premium rose to a high of USD60/oz in August before normalising to USD37/oz. While the rise had more to do with a supply squeeze caused by the government’s import restrictions, strong physical buying should keep the premium high into the fourth quarter. We expect imports to pick up from next month.”

They also noted the strength in India’s imports in Q2, and again in July, even though gold prices were high. “The government has stepped in to curb a rise in imports of gold jewellery from Indonesia caused by the fact that under the India-ASEAN free trade agreement (FTA) dealers were importing gold jewellery without paying import duty to avoid the 15% duty on refined gold,” they said, which they believe means importers will return to using plain gold. “Restocking of gold ahead of festive season could also see imports rising in the coming months.”

ANZ did strike a note of caution about India’s demand prospects, however. “A weak INR could keep domestic prices higher, which could hurt retail demand,” they said. “Disappointing monsoon rainfall so far this year and food inflation are other drags, undermining consumer demand for gold in the fourth quarter of the year.”

By

Ernest Hoffman

For Kitco News

Time to Buy Gold and silver

Tim Moseley

The Artist that came out of the Winter