Gold, silver traders tread water ahead of U.S. debt talks, CPI
Comex gold and silver futures prices are not straying too far from unchanged levels at midday Tuesday. Precious metals traders are very tentative ahead of important government and economic developments in the U.S. that will soon come into play for the marketplace. June gold was last up $0.80 at $2,034.00 and July silver was down $0.059 at $25.775.
President Biden later today meets with House Speaker Kevin McCarthy and other congressional leaders to discuss raising or suspending the U.S. debt ceiling. U.S. Treasury Secretary Janet Yellen told lawmakers last week the U.S. could default on its debt as early as June 1 if Congress does not raise or suspend the debt limit before that time. No progress at today’s meeting would likely cause at least a bit of marketplace anxiety.
The U.S. data point of the week is Wednesday morning’s April consumer price index report, which is expected to come in at up 5.0%, year-on-year, which would be the same as reported in the March CPI. The April core CPI is forecast up 5.5% versus up 5.6% in the March report. A Federal Reserve banking lender survey released Monday showed bankers have curtailed loans to customers, which is likely to help tame inflation.
Gold's recent push near all-time highs was just a test run as Citigroup's Morse sees prices hitting $2,400
Global stock markets were mixed overnight. U.S. stock indexes are weaker at midday. Trading has turned choppy and sideways in the stock indexes.
The key outside markets today see the U.S. dollar index higher. Nymex crude oil prices are lower and trading around $72.00 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.52%.
Technically, June gold futures bulls have the solid overall near-term technical advantage. Prices are in a 2.5-month-old uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the record high of $2,085.40. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,980.00. First resistance is seen at $2,050.00 and then at $2,063.40. First support is seen at this week’s low of $2,022.00 and then at last Friday’s low of $2,007.00. Wyckoff's Market Rating: 8.0
July silver futures bulls have the solid overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at $27.00. The next downside price objective for the bears is closing prices below solid support at $24.00. First resistance is seen at $26.00 and then at the April high of $26.435. Next support is seen at today’s low of $25.57 and then at $25.25. Wyckoff's Market Rating: 8.0.
July N.Y. copper closed down 345 points at 389.50 cents today. Prices closed nearer the session low. The copper bears have the overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 408.00 cents. The next downside price objective for the bears is closing prices below solid technical support at the January low of 372.45 cents. First resistance is seen at this week’s high of 395.95 cents and then at last week’s high of 400.50 cents. First support is seen at this week’s low of 387.65 cents and then at the April low of 381.65 cents. Wyckoff's Market Rating: 4.0.
With the chance of a U.S. default in a matter of weeks, U.S. Treasury Secretary Janet Yellen warned that if the debt ceiling is not lifted, it could trigger a "constitutional crisis."
"It's Congress's job to do this. If they fail to do it, we will have an economic and financial catastrophe that will be of our own making," Yellen told ABC on Sunday. "And we should not get to the point where we need to consider whether the president can go on issuing debt. This would be a constitutional crisis."
The debt cap negotiations should not be done "with a gun to the head of the American people," Yellen added.
The latest message comes ahead of U.S. President Joe Biden's Tuesday meeting with Republican House Speaker Kevin McCarthy, Republican Senate Minority Leader Mitch McConnell and top congressional Democrats to discuss the debt issue.
"The meeting between President Biden and Republican leaders on Tuesday to discuss the U.S. debt ceiling will be closely watched. We think that political talks will go on for some time before an agreement to raise the debt ceiling is finally reached, which could weigh on risk appetite," Capital Economics commodity economists said.
Negotiations are currently at an impasse after the Republican-led House of Representatives passed a bill in April that would raise the debt ceiling conditional on extensive spending cuts, which Biden is against.
The federal government reached the cap on borrowing back in January. Since then, the Treasury has employed "extraordinary measures" to pay the bills.
Last week, Yellen told Congress that the U.S. could run out of money by June 1. "After reviewing recent federal tax receipts, our best estimate is that we will be unable to continue to satisfy all of the government's obligations by early June, and potentially as early as June 1, if Congress does not raise or suspend the debt limit before that time," Yellen wrote in a letter to House Speaker Kevin McCarthy.
Uncertainty over the debt ceiling has been one of gold's drivers during the past month. "Gold and silver prices rose, which can only be explained by safe-haven demand in a week when another U.S. bank failed and concerns mounted about the approach of the U.S. debt ceiling," economists at Capital Economics said. "We suspect that the gold price will remain elevated while concerns about the banking sector and debt ceiling persist."
On Monday, gold hit a daily high of $2,037.10 an ounce, with June Comex gold futures last trading at $2,028.00, up 0.16% on the day.
"Gold looks like it wants to make another run towards record territory. Too many recessionary risks are on the table for gold to see a significant pullback," OANDA senior market analyst Edward Moya said.
Analysts expect negotiations over the debt ceiling to get right down to the wire but ultimately avoid a default. In the meantime, volatility remains the name of the game, said ABN AMRO senior U.S. economist Bill Diviney.
"Financial markets are likely to become increasingly sensitive to developments over the coming weeks as the U.S. Treasury runs down its cash buffers," Diviney said Monday. "Similar to the 2011 debt ceiling impasse, the government is divided along partisan lines, with Democrats controlling the presidency and the Senate, and Republicans controlling the House."
To learn more about how gold behaved during the 2011 debt ceiling crisis, click here.
A default scenario, something that most analysts are ruling out, will have profound negative implications for the U.S. economy.
"A technical default – one that involves the government missing coupon payments and therefore triggering credit default swaps – is highly unlikely. Should the Treasury run out of cash, we expect it to prioritise bond coupon payments over other financial commitments, even if that means swingeing cuts to spending and a partial government shutdown," Diviney said. "However, the longer this were to go on for, the negative impact on financial markets and on the economy would become increasingly non-linear."
One major negative effect would be bond yields falling, with demand for safe havens offsetting higher risk premium effects, Diviney added. "This happened during the 2011 debt ceiling impasse when S&P downgraded the U.S. sovereign from AAA to AA+," he said.
The U.S. and China are on 'brink of war' as gold touches record highs and banking sector troubles intensify
Gold's price action was defined by major volatility this week. Gold Comex futures tested record highs as the banking sector troubles intensified. Markets also dissected Federal Reserve Chair Jerome Powell's messaging, while Friday's stronger-than-expected U.S. employment report weighed on gold.
Here's a look at Kitco's top three stories of the week:
3. Comex gold prices test record highs and touch $2,085 an ounce.
2. There's a new U.S. debt ceiling deadline.
1. Ray Dalio: The U.S. and China are on 'the brink of an economic resources war'
Cryptocurrencies Could Be the Answer to De-Dollarization
In today's globalized world, cross-border transactions have become a routine part of our lives. However, these transactions can be expensive and time-consuming, often requiring intermediaries such as banks and payment processors. Moreover, the dominance of the U.S. dollar in international trade has created dependencies and vulnerabilities in the global financial system. As a result, many countries are exploring alternatives to the U.S. dollar and seeking ways to facilitate cross-border transactions that are cheaper, faster, secure, and, most significantly, an alternative that would be politically neutral.
Countries and organizations are using this de-dollarisation technique more frequently to lessen their reliance on the U.S. dollar, which has been the main reserve currency since the Bretton Woods monetary system was established after World War II. In this context, cryptocurrencies have emerged as a potential solution to the challenges posed by cross-border transactions and de-dollarization. Cryptocurrencies offer a decentralized, borderless, and secure way to transfer value across borders without intermediaries.
In this article, we will explore the reasons behind de-dollarization's emergence and a possible solution to this problem. Let's get started!
Historical Overview of De-dollarization
The idea of de-dollarization is not new and has been discussed by economists and policymakers for decades. However, it gained more attention after the 2008 financial crisis, which exposed the vulnerabilities and dependencies of the global financial system on the U.S. dollar.
In the years following the financial crisis, countries such as Russia, China, and Iran began to take steps to reduce their dependence on the U.S. dollar. For instance, in 2009, Russia proposed the creation of a new global reserve currency to replace the U.S. dollar, citing concerns about the stability of the dollar and the impact of U.S. monetary policy on the global economy.
China has also been taking steps to internationalize its currency, the Yuan, and reduce its reliance on the U.S. dollar. In 2016, the International Monetary Fund (IMF) added the Yuan to its basket of reserve currencies alongside the U.S. dollar, Euro, Yen, and Pound Sterling. This move was seen as a significant step towards the internationalization of the Yuan and reducing the dominance of the U.S. dollar in the global financial system.
Countries like Venezuela and Iran have turned to cryptocurrencies to bypass U.S. sanctions and reduce their dependence on the U.S. dollar. Venezuela, for instance, launched its cryptocurrency, the Petro, in 2018, which it claimed would be backed by the country's oil reserves. Iran has also been exploring using cryptocurrencies to facilitate cross-border transactions and reduce its dependence on the U.S. dollar.
The five major emerging economies of Brazil, Russia, India, China, and South Africa (BRICS) represent nearly 42% of the world's population and have a combined GDP of over $16 trillion. They have been reducing their dependence on the U.S. dollar and promoting de-dollarization in the global financial system.
One of the critical initiatives of BRICS in promoting de-dollarization is the establishment of the New Development Bank (NDB) in 2014. The NDB is a multilateral development bank that aims to support infrastructure and sustainable development projects in BRICS and other emerging economies. It was created in response to the perceived inadequacies of existing international financial institutions, such as the World Bank and the International Monetary Fund (IMF), in addressing the needs of emerging economies.
Another initiative of BRICS in promoting de-dollarization is the establishment of the Contingent Reserve Arrangement (CRA) in 2015. The CRA is a framework that allows BRICS countries to provide each other with financial assistance in times of crisis without relying on the IMF and the U.S. dollar. The CRA has a total pool of $100 billion, which can be used to provide short-term liquidity support to member countries.
In addition to these initiatives, BRICS countries have also been exploring using their own currencies in cross-border transactions to reduce their dependence on the U.S. dollar. For instance, China and Russia have been conducting trade in their currencies since 2010, and India and Russia have also agreed to conduct trade in their currencies. Brazil and China have also signed a currency swap agreement allowing them to trade in their own currencies without using the U.S. dollar as an intermediary currency.
The BRICS countries are playing an increasingly important political game in promoting de-dollarization and reducing the dominance of the U.S. dollar in the global financial system. By establishing their multilateral institutions and exploring the use of their currencies in cross-border transactions, they are challenging the existing order and promoting a more multipolar world. Cryptocurrencies, with their borderless and decentralized nature, play an unimaginably essential role in this process, offering an alternative to traditional currencies and financial institutions.
How Would De-dollarization Impact The Rest of The World?
The new currency that replaces the U.S. dollar will significantly influence how de-dollarization affects the rest of the globe. As nations and organizations would need to adapt to the changes in their financial systems, a new reserve currency would probably result in significant volatility for the global financial system. The new reserve currency may also impact the system of international commerce since different nations may need to alter their currency exchange rates to account for it.
There will be an increased rivalry between the BRICS nations and the other countries which utilizes the SWIFT system. The BRICS partners are working to create international alternatives to SWIFT and other U.S.-dominated payment systems. The BRICS is motivated by the growth of international commerce and a need to create an alternative global payment network that can't be susceptible to U.S. government sanctions.
As international banking transactions involving multiple currencies require conversion into U.S. dollars, banks participating in the potentially sanctions-busting alternative to SWIFT risk retaliation from the U.S., which could use its power to exclude sanctioned banks and corporations from the global banking infrastructure. This calls for using intermediate banks with U.S. roots and SWIFT, which, according to nations like China, Russia, Iran, and Turkey, allows countries targeted by the most recent U.S. foreign policy to be cut off from global trade.
China, the world's second-largest economy in nominal terms of GDP, is attempting to promote the Yuan as a trade alternative to the U.S. dollar. An increasing de-dollarization trend has sparked trade agreements involving Brazil, Russia, India, China, and South Africa. This agreement has captured the interest of 19 countries that recently declared their intentions to join the BRICS.
Apart from the U.S. faltering economy, the government is notorious for its debt trap policies. For countries to maintain the U.S. dollar as the world's reserve currency, the U.S. government must keep it politically neutral and not use it as a weaponized tool against any nation through sanctions.
The Rise of Cryptocurrencies
Cryptocurrencies have significantly increased in popularity and adoption over the past decade. Bitcoin, the first and most well-known cryptocurrency, was created in 2009, and since then, thousands of other cryptocurrencies have been developed.
One of the main drivers of the rise of cryptocurrencies has been the increasing use of blockchain technology, which underpins most cryptocurrencies. Another factor contributing to the rise of cryptocurrencies has been the growing distrust of traditional financial institutions and government-backed currencies. Many people see cryptocurrencies as a way to bypass traditional financial systems and gain more control over their money with a high degree of privacy and anonymity.
The rise of cryptocurrencies offers a potential solution to the problem of de-dollarization, although more is needed. Cryptocurrencies can help countries reduce their dependence on the U.S. dollar and mitigate the impact of U.S. economic policies and sanctions by providing a stable and reliable means of exchange that operates independently of governments and central banks.
Countries that rely heavily on the U.S. dollar for trade and finance are vulnerable to U.S. policy decisions, which can have significant economic consequences. By diversifying away from the U.S. dollar, countries can reduce this risk and mitigate the impact of U.S. policies.
Cryptocurrencies, such as Bitcoin, offer several potential advantages for countries looking to reduce their reliance on the U.S. dollar. For example, Bitcoin is not subject to the same geopolitical pressures as traditional fiat currencies, offering high transparency and security. Bitcoin can provide a more stable store of value than fiat currencies, which can be subject to inflation and other economic pressures.
However, significant challenges are associated with using cryptocurrency as a solution to de-dollarization. For example, the value of cryptocurrencies can be highly volatile, making them an unreliable store of value. The regulatory landscape surrounding cryptocurrencies is complex and can change rapidly, making it difficult for countries to incorporate them into their monetary systems.
Despite these risks, the rise of cryptocurrencies shows no signs of slowing down, and they will likely continue to play an increasingly important role in the global financial system in the years to come.
Cryptocurrencies Offer Freedom In A World Of Financial Slavery By Design
Although cryptocurrencies have long been debated and studied, they are only recently beginning to gain acceptance as financial instruments that may be useful to those who aren't die-hard crypto enthusiasts. Cryptocurrencies have the potential to enable social and economic improvement worldwide, particularly in developing countries, by facilitating access to finance and financial services.
Although there are many advantages that users of cryptocurrencies can take advantage of, the most important one is an unmatched degree of freedom, such as mental and financial independence from controlling one's resources.
Early adopters who became rich overnight and discovered opportunities for financial growth had witnessed the incredible rate at which the crypto sector is evolving. The most well-known cryptocurrency, Bitcoin, has already enabled many people and businesses to prosper. The economy is gradually adapting to fulfill these expectations, and cryptocurrencies can assist.
Over one-third of the world's population lacks access to essential banking services like loans and account opening that might help them during personal financial crises. Even within India, banks charge interest rates significantly over what is fair, making consumers who sought loans feel even more uneasy. Cryptocurrencies can help with this because of their high volatility and straightforward usage.
Using cryptocurrency is made simpler and more accessible by several programs and tools. Massive crypto adoption will usher in an era of economic transformation where everyone will have greater control and empowerment over their finances.
Final Thoughts
De-dollarization is a significant trend to watch because it will significantly impact the U.S. dollar, the U.S. economy, and the rest of the world. It's still being determined how this will play out, but it seems possible that cryptocurrencies will play an essential role in de-dollarization. In the meantime, it's worth watching how countries are moving away from the U.S. dollar and how this affects their economies.
Cryptocurrencies offer several potential solutions to the challenges of cross-border transactions, bypassing U.S. sanctions and reducing reliance on the U.S. financial system. Increased adoption of cryptocurrencies could significantly impact the global financial system. It could reduce the dominance of traditional financial institutions and provide more opportunities for peer-to-peer transactions.
However, there are potential challenges to adopting cryptocurrencies, including regulatory and security concerns and the need for infrastructure and adoption. Other factors, such as geopolitical developments, trade policies, and macroeconomic trends, are likely to play a significant role in shaping the future of the global financial system. As such, the impact of cryptocurrencies on cross-border transactions and de-dollarization will depend on how quickly these challenges can be addressed and how widely cryptocurrencies are adopted.
About: Prince Ibenne. (Nigeria) Rapid and sustainable human growth is my passion, and getting a life-changing opportunity into the hands of people is my calling. Empowering entrepreneurs provides me with enormous gratification. Find me at my Markethive Profile Page | My Twitter Account | and my LinkedIn Profile.
Blockchain Wallets: A Beginner's Guide to Understanding and Using Them
Blockchain wallets are an essential tool for anyone looking to invest or use cryptocurrencies. These digital wallets allow users to store and manage their cryptocurrencies, including Bitcoin, Ether, and others. Blockchain wallets use advanced encryption techniques to ensure security and provide users with complete control over their funds.
To use a blockchain wallet, users must first set up an account and generate a unique public address and private key. The public address is used to receive funds, while the private key is used to access and send funds. Transactions on the blockchain are verified by a network of nodes, making them decentralized and transparent.
While blockchain wallets may seem complex, they are essential for anyone looking to invest or use cryptocurrencies. By providing users with complete control over their funds and utilizing advanced encryption techniques, blockchain wallets offer a secure and efficient way to manage digital currencies. Whether you're an experienced investor or just starting, understanding how to use a blockchain wallet is crucial for success in the world of cryptocurrencies.
What is a Blockchain Wallet?
Definition
A blockchain wallet is a digital wallet that allows users to store, manage, and transfer their cryptocurrencies securely. Blockchain wallets use blockchain technology to record and verify transactions, ensuring that each transaction is legitimate and secure. The wallet stores the user's private key, which is used to access their cryptocurrency, and their public key, which is used to receive cryptocurrency.
Types of Blockchain Wallets
There are several types of blockchain wallets, including desktop wallets, mobile wallets, hardware wallets, hot wallets, cold wallets, and paper wallets.
Desktop wallets are software wallets that are downloaded onto a user's computer. They can be used to store multiple cryptocurrencies and are accessible only from the computer on which they are installed. Mobile wallets, on the other hand, are apps that can be downloaded onto a user's smartphone. They are convenient for users who need to access their cryptocurrency on the go.
Hardware wallets are physical devices that store a user's private key offline, making them more secure than software wallets. They are often used for large amounts of cryptocurrency and are considered the most secure type of wallet.
Hot wallets are connected to the internet and are easier to access but are also more vulnerable to hacking. Cold wallets, on the other hand, are not connected to the internet and are considered the most secure type of wallet. Paper wallets are a form of cold wallet that is printed on paper and can be stored offline.
How Do Blockchain Wallets Work?
Blockchain wallets work by using a public key, which is used to receive cryptocurrency, and a private key, which is used to access and transfer cryptocurrency. When a user sends cryptocurrency, they create a transaction that is broadcast to the network. The network verifies the transaction using blockchain technology, ensuring that it is legitimate and secure.
To access their cryptocurrency, users must enter their private key or scan a QR code, which contains their wallet ID. The wallet ID is a unique identifier that is used to access the user's cryptocurrency. Some popular blockchain wallets include Exodus, Ledger Nano S, and online wallets provided by cryptocurrency exchanges.
In summary, blockchain wallets are digital wallets that allow users to store, manage, and transfer their cryptocurrencies securely. They come in various types, including software wallets, hardware wallets, hot wallets, cold wallets, and paper wallets. They work by using a public key to receive cryptocurrency and a private key to access and transfer cryptocurrency.
How to Use a Blockchain Wallet
Using a blockchain wallet is relatively simple, but it is important to understand the basic features and functions. This section will provide a step-by-step guide on how to use a blockchain wallet, including creating a wallet, setting it up, sending and receiving cryptocurrencies, checking balances, and ensuring security.
Creating a Blockchain Wallet
To create a blockchain wallet, users must first choose a wallet provider. Some popular providers include Trezor, Mycelium, and Coinbase. Once a provider is chosen, users can create a new wallet by following the instructions on the provider's website. This typically involves entering an email address and creating a password.
Setting Up Your Blockchain Wallet
After creating a wallet, users must set it up by generating a private key and public address. The private key is a secret code that allows users to access their wallet and make transactions. The public address is a unique code that serves as the wallet's address and allows other users to send cryptocurrencies to the wallet.
Sending and Receiving Cryptocurrencies
To send cryptocurrencies from a blockchain wallet, users must enter the recipient's public address and the amount they wish to send. To receive cryptocurrencies, users must provide their public address to the sender. It is important to double-check all addresses before sending or receiving cryptocurrencies to avoid losing funds.
Checking Your Balances
Users can check their blockchain wallet balances by logging into their account and viewing their transaction history. Some wallets also allow users to view their balances in real-time and set up alerts for certain transactions.
Fees and Security
When using a blockchain wallet, users should be aware of the fees associated with transactions. These fees are typically dynamic and based on the current network congestion. Some wallets also offer additional security features, such as two-factor authentication or email notifications for transactions.
Overall, using a blockchain wallet is a simple and secure way to store and manage cryptocurrencies. By following these basic steps and taking the necessary precautions, users can ensure that their funds are safe and secure.
Blockchain Wallet Security
When it comes to blockchain wallets, security is a top priority. Users need to ensure that their digital assets are safe from hacking attempts and other malicious activities. In this section, we will discuss the features of secure blockchain wallets, the types of blockchain wallet security, and best practices for blockchain wallet security.
Features of Secure Blockchain Wallets
Secure blockchain wallets have several key features that make them highly secure. One of the most important features is two-factor authentication. This requires users to enter a code sent to their mobile device or email in addition to their password. Recent transactions are also displayed in the wallet interface, allowing users to monitor their account for any suspicious activity.
Another important feature of secure blockchain wallets is user-friendly interfaces. Sign-up processes are easy to navigate, and the wallet should support multiple cryptocurrencies. Low transaction fees are also a plus, as it ensures that users are not losing money unnecessarily.
Types of Blockchain Wallet Security
There are several types of blockchain wallet security, including hardware wallets, web wallets, and intermediary wallets. Hardware wallets, such as the Ledger Nano X, are highly secure as they store private keys offline. Web wallets, on the other hand, are accessible through a web browser and are more vulnerable to hacking attempts.
Intermediary wallets, such as Copay, require multiple signatures to approve a transaction. This makes it more difficult for hackers to access user data. It is important to note that each type of wallet has its own set of pros and cons, and users should choose the type that best suits their needs.
Best Practices for Blockchain Wallet Security
To ensure the highest level of security for their blockchain wallets, users should follow best practices such as keeping their private keys safe, using strong passwords, and regularly updating their wallet software. Privacy is also a concern, and users should be aware of the data that their wallet collects and how it is used.
It is also recommended that users only use highly secure wallets and avoid using web wallets on public computers. Users should also be cautious of phishing attempts and avoid sharing their private keys with anyone.
Overall, blockchain wallet security is of utmost importance in the crypto world. By following best practices and choosing secure wallets, users can ensure that their digital assets are safe and secure.
Conclusion
Blockchain wallets are an essential tool for anyone who wants to own and use cryptocurrencies. These wallets provide a secure and convenient way to store, send, and receive digital assets. By using a blockchain wallet, users can enjoy a high degree of privacy and control over their funds, without the need for intermediaries like banks or payment processors.
One of the main benefits of blockchain wallets is their security. Because they use cryptographic algorithms to secure transactions and store private keys, these wallets are virtually immune to hacking and fraud. Moreover, blockchain wallets offer a high degree of anonymity, as users can create multiple addresses and use them to send and receive funds without revealing their identity.
Another advantage of blockchain wallets is their low transaction fees. Unlike traditional banking systems, which often charge high fees for international transfers, blockchain wallets allow users to send funds across borders at a fraction of the cost. This makes them an ideal choice for people who need to send and receive money globally, such as freelancers, entrepreneurs, and investors.
Overall, blockchain wallets are a powerful tool for anyone who wants to participate in the cryptocurrency ecosystem. By using a reliable and secure wallet, users can protect their assets, enjoy greater privacy and control, and take advantage of the many benefits of decentralized finance. Whether you are a seasoned investor or a newcomer to the world of crypto, a blockchain wallet is an essential tool that can help you achieve your financial goals.
Gold price to keep trading at historically high levels as markets monitor debt ceiling debate and credit conditions – analysts
Concerns about credit conditions and the debt ceiling debate will keep gold prices at historically elevated levels for the next few months, according to analysts.
The gold market retreated Friday as the banking fears subsided and the U.S. April employment report came in better than expected.
The U.S. unemployment rate fell back to a 53-year low of 3.4%, while the economy added 253,000 jobs last month.
"The employment market is showing clear resilience despite the drastic increase to U.S. interest rates over the last year and this resilience is going to afford Fed policymakers patie
Gold price to keep trading at historically high levels as markets monitor debt ceiling debate and credit conditions – analysts
Concerns about credit conditions and the debt ceiling debate will keep gold prices at historically elevated levels for the next few months, according to analysts.
The gold market retreated Friday as the banking fears subsided and the U.S. April employment report came in better than expected.
The U.S. unemployment rate fell back to a 53-year low of 3.4%, while the economy added 253,000 jobs last month.
"The employment market is showing clear resilience despite the drastic increase to U.S. interest rates over the last year and this resilience is going to afford Fed policymakers patience to ultimately continue to watch economic data before making any decisions over the narrative on the future monetary policy outlook," said CompareBroker.io chief analyst Jameel Ahmad.
June Comex gold futures were last at $2,024.30 an ounce, down 1.3% on the day. This came after Comex prices tested record highs of $2,085.40 earlier in the week.
"Banking worries seem to have disappeared today. But that is a story that is not going away any time soon," OANDA senior market analyst Edward Moya told Kitco News. "Overall, risks are to still elevated, credit conditions will continue to tighten. And with U.S. President Joe Biden meeting for debt ceiling talks. The risks will return."
The gold market won't face any serious obstacles until the debt ceiling issue and the banking sector turmoil are resolved, said Capital Economics commodities economist Edward Gardner.
"Concern about banks and the U.S. debt ceiling will keep the gold price historically high in the next few months. However, once these worries fade, we think that longer-term headwinds will come into play," Gardner said Friday. "Our new indicator of financial stress in advanced economies indicates that the gold price is benefiting from safe-haven demand related to banking troubles."
Washington is currently at a stalemate on the U.S. debt ceiling increase, which increases the risk of a default by June 1.
RBC Wealth Management warned this week that this year's political and economic backdrop is "one of the most challenging."
The last time the debt ceiling really shook markets was in 2011, and there are some parallels to be drawn between then and now.
"In 2011, the U.S. reached its debt ceiling on 16th May and, after much political wrangling, passed legislation to raise it on 1st August. On that date, the gold price was up by 9% month on month, which was probably in part due to U.S. government finance concerns. These same concerns have, of course, recently resurfaced," Gardner.
These issues might plague markets for the next few months, which will keep gold around the $2,000 level, according to Capital Economics.
Capturing record highs again in the short term might be challenging, but gold will likely get there again, Moya said.
"Inflation will prove to be sticky, which will justify the Fed maintaining a higher for longer stance. But the outlook for gold is bullish. Do we recapture record high? There is a good case to be made that eventually, we will."
Gold's key support is currently at $1,990, and the first resistance could be at $2,040 an ounce.
"The Fed is done for now. June meeting is likely to be a pause. Gold's key drivers will be the debt ceiling, banking concerns, and recession risks," Moya said.
Next week's data
Wednesday: U.S. CPI
Thursday: Bank of England rate decision, U.S. jobless claims, U.S. PPI
Email Marketing: Simplify Your Life with These Tips
Email marketing is a powerful tool that can make your life easier in many ways. As someone who has worked in marketing for several years, I've seen firsthand how effective email campaigns can be for businesses of all sizes. Whether you're looking to increase brand awareness, drive sales, or build relationships with customers, email marketing can help you achieve your goals.
One of the biggest advantages of email marketing is automation. With the right tools, you can set up automated campaigns that will send targeted messages to your subscribers at the right time. This can save you a lot of time and effort, as you won't have to manually send emails to each individual on your list. Instead, you can focus on creating high-quality content that will engage your audience and drive conversions.
Another benefit of email marketing is the ability to send newsletters. Newsletters are a great way to keep your subscribers informed about your business and industry. You can use newsletters to share news, updates, and exclusive content that your subscribers won't find anywhere else. This can help you build a loyal following and establish yourself as an authority in your field. Overall, email marketing is a powerful tool that can help you achieve your marketing goals and make your life easier in the process.
Why Email Marketing is Important
As a marketer, I have found that email marketing is an essential tool for building my brand and growing my audience. Here are a few reasons why email marketing is important:
Building Your Brand
Email marketing is a great way to build your brand and establish a relationship with your audience. By sending personalized and relevant emails, you can create a connection with your subscribers and build trust. This can help you establish your brand as an authority in your industry and increase brand awareness.
Email marketing is also an effective way to grow your audience. By creating targeted email campaigns and offering valuable content, you can attract new subscribers and keep them engaged. You can also use email marketing to promote your products and services, which can help you generate leads and increase sales.
Strategy
To make the most of email marketing, it's important to have a solid strategy in place. This includes creating a strong email list, segmenting your subscribers, and creating targeted campaigns. You should also track your metrics and adjust your strategy as needed to ensure that you are getting the best results.
Email List
Your email list is the foundation of your email marketing campaign. It's important to build a quality list of subscribers who are interested in your brand and content. You can do this by offering valuable content and incentives for subscribing, such as exclusive discounts or free resources.
Marketing Campaign
Creating a successful email marketing campaign requires planning and strategy. You should create a clear goal for each campaign and tailor your content and messaging to your audience. You can also use automation and segmentation to ensure that your campaigns are targeted and effective.
Overall, email marketing is an essential tool for any marketer looking to build their brand and grow their audience. By creating targeted campaigns and offering valuable content, you can attract new subscribers and keep them engaged. With a solid strategy in place, you can maximize the benefits of email marketing and achieve your marketing goals.
As an email marketer, I know that email campaigns can be an effective way to reach out to potential customers and keep existing ones engaged. However, creating an effective email campaign is not always easy. Here are a few things I keep in mind when crafting my email campaigns:
Creating Effective Email Campaigns
The first step in creating an effective email campaign is to define your goals. What do you want to achieve with this campaign? Is it to drive traffic to your website, promote a new product or service, or simply keep your subscribers engaged? Once you have a clear goal in mind, you can start crafting your message.
One important aspect of any email campaign is the subject line. This is the first thing your subscribers will see when they receive your email, so it's important to make it attention-grabbing and relevant. A good subject line can increase your open rates and ultimately lead to more conversions.
Another important aspect of an effective email campaign is the email template. Your email should be visually appealing and easy to read. I like to use email marketing tools like Mailchimp to create professional-looking templates that are optimized for deliverability and engagement.
Measuring Success
Once you've sent out your email campaign, it's important to measure its success. This will help you understand what worked and what didn't, and allow you to make improvements for future campaigns.
Some key metrics to track include open rates, click-through rates, and conversions. These metrics can help you understand how engaged your subscribers are with your content, and whether your email campaign is driving the desired actions.
In addition to these basic metrics, it's also important to track more advanced metrics like ROI and social media engagement. These metrics can help you understand the broader impact of your email campaign on your business.
Overall, email campaigns can be a powerful tool for any business looking to engage with customers and drive conversions. By creating effective campaigns and measuring their success, you can ensure that your email marketing efforts are delivering the results you need to grow your business.
Optimizing Your Emails
As an email marketer, I know that optimizing emails is crucial for a successful campaign. Here are some tips to help you design effective emails, segment your email list, choose the right send time, and A/B test your emails.
Designing Effective Emails
When designing your emails, it's important to keep in mind that most people receive a lot of emails every day. To make your email stand out, you should:
Use a clear and concise subject line that accurately reflects the content of your email
Use a clean and simple design that is easy to read and navigate
Include a clear call to action that encourages the reader to take action
Using customizable templates and a code editor can make it easier to create professional-looking emails that are consistent with your brand.
Segmenting Your Email List
Segmenting your email list can help you send more targeted and personalized emails that are more likely to be opened and clicked. You can segment your list based on:
Demographics (age, gender, location, etc.)
Behavior (opens, clicks, purchases, etc.)
Interests (products, services, content, etc.)
Segmenting your list can also help you avoid sending irrelevant emails to subscribers, which can lead to unsubscribes and spam complaints.
Choosing the Right Send Time
Choosing the right send time can have a big impact on the success of your email campaign. You should consider:
Time zone differences
The day of the week
The time of day
A/B testing your send time can help you determine the optimal time to send your emails.
A/B Testing Your Emails
A/B testing your emails can help you optimize your email content to increase opens, clicks, and conversions. You can test:
Subject lines
Call to action buttons
Images
Offers
To get accurate results, you should only test one variable at a time.
In conclusion, email marketing can make your life easier in many ways. As I have discussed throughout this article, email marketing can help you automate your marketing efforts, allowing you to save time and focus on other aspects of your business.
By utilizing the right automation tools, you can set up targeted campaigns that reach your desired audience, whether it be current customers or potential leads. This allows you to tailor your messages and increase the chances of engagement and conversion.
It's also important to remember the importance of relevant content and a strong call-to-action in your email campaigns. By providing valuable information and a clear next step, you can increase the chances of your audience taking action.
Overall, email marketing is a powerful tool that can help you streamline your marketing efforts and achieve your business goals. With the right strategy and tools in place, you can take advantage of this effective marketing channel and see the results for yourself.
Believing in oneself is a crucial element of success. It is the foundation of self-confidence and self-esteem, which are essential for achieving goals and fulfilling one's potential. People who have faith in themselves are more likely to take risks, persist in the face of obstacles, and bounce back from setbacks.
Believing in oneself is important because it affects every aspect of life, from personal relationships to professional endeavors. When people lack confidence in themselves, they may hesitate to speak up, take on leadership roles, or pursue their passions. On the other hand, those who believe in themselves are more likely to take charge of their lives, pursue their dreams, and achieve their goals. They are also more likely to inspire others and be seen as leaders.
Overall, believing in oneself is a critical component of success and happiness. It allows people to recognize their own strengths and abilities, take on challenges, and pursue their passions with confidence. While it is not always easy to develop self-belief, it is a skill that can be cultivated over time with practice and persistence.
The Importance of Believing in Yourself
What is Self-Belief?
Self-belief is the confidence in oneself and one's abilities. It is the trust that one has in their worth, skills, and efforts. Believing in oneself is crucial because it enables individuals to have a positive attitude and a positive self-talk. It is the inner voice that tells individuals that they can achieve their goals and overcome challenges.
The Psychology Behind Believing in Yourself
Believing in oneself is a fundamental aspect of psychological well-being. It is linked to self-esteem, self-efficacy, and self-worth. When individuals believe in themselves, it increases their motivation, and they are more likely to take risks and try new things. It helps individuals to adopt a growth mindset and view their experiences, including failures, as opportunities to learn and grow.
Research has shown that self-belief is essential in achieving success. According to a study by Bandura (1977), individuals with high self-efficacy are more likely to perform well and achieve their goals. Self-belief helps individuals to have autonomy and control over their behavior and environment. It also enables individuals to have better relationships with others.
Believing in oneself is not just about having confidence in one's abilities. It also involves having compassion for oneself, acknowledging one's strengths and weaknesses, and practicing self-respect. It is essential to have a positive attitude towards oneself and to be one's own cheerleader.
In conclusion, believing in oneself is crucial for psychological well-being, resiliency, and success. It involves having faith in one's capabilities, resources, and personal qualities. It is a mindset that can be developed through self-reflection, positive self-talk, and environmental mastery. When individuals believe in themselves, they are more likely to love themselves, overcome adversity, and achieve their goals.
The Benefits of Believing in Yourself
Believing in oneself is a crucial aspect of psychological well-being. It can help individuals achieve their goals, cope with stress, and lead fulfilling lives. In this section, we will explore some of the benefits of believing in oneself, including improved performance and achievement, greater resilience and adaptability, and increased self-esteem and self-worth.
Improved Performance and Achievement
Believing in oneself can have a significant impact on one's performance and achievement. When individuals have confidence in their abilities, they are more likely to put in the effort required to succeed. They are also more likely to persevere in the face of obstacles and setbacks. This can lead to greater success in various domains, including academics, sports, and the workplace.
Greater Resilience and Adaptability
Believing in oneself can also help individuals become more resilient and adaptable. When individuals trust their abilities and resources, they are better equipped to handle adversity and overcome obstacles. They are also more likely to view challenges as opportunities for growth and learning. This can lead to increased resiliency, which is the ability to bounce back from difficult experiences.
Increased Self-Esteem and Self-Worth
Believing in oneself can also boost self-esteem and self-worth. When individuals have confidence in their abilities, they are more likely to view themselves in a positive light. They are also more likely to engage in positive self-talk and have a positive attitude towards themselves. This can lead to increased self-esteem, which is the subjective evaluation of one's worth as a person.
Overall, believing in oneself is a crucial aspect of psychological well-being. It can lead to improved performance and achievement, greater resilience and adaptability, and increased self-esteem and self-worth. By cultivating self-belief, individuals can trust their abilities and resources, which can lead to greater success and fulfillment in life.
The Challenges of Believing in Yourself
Believing in oneself is not always easy. There are many challenges that can make it difficult to maintain a positive attitude and trust in one's capabilities. In this section, we will explore some of the most common obstacles to self-belief and discuss strategies for overcoming them.
Overcoming Negative Self-Talk
One of the biggest challenges to believing in oneself is negative self-talk. This is the inner voice that tells us we are not good enough, smart enough, or talented enough to achieve our goals. Negative self-talk can be particularly damaging when it becomes a habit, as it can erode our self-confidence and make it difficult to take risks or try new things.
To overcome negative self-talk, it is important to identify and challenge the negative thoughts that are holding us back. This can involve questioning the evidence for our negative beliefs, reframing our thoughts in a more positive light, and cultivating a more compassionate and supportive inner voice.
Dealing with Fear of Failure
Another common obstacle to self-belief is the fear of failure. Many people are afraid to take risks or pursue their goals because they worry that they will not succeed, and that failure will be a reflection of their worth as a person.
To overcome the fear of failure, it is important to reframe our mindset around failure. Rather than seeing failure as a reflection of our worth, we can view it as an opportunity to learn and grow. By embracing a growth mindset, we can see setbacks and obstacles as opportunities for improvement, rather than as evidence of our limitations.
Managing Setbacks and Obstacles
Even with a positive attitude and a growth mindset, setbacks and obstacles are an inevitable part of life. When we encounter challenges, it can be tempting to give up or become discouraged.
To manage setbacks and obstacles, it is important to stay focused on our goals and to maintain a sense of perspective. This can involve breaking larger goals down into smaller, more manageable steps, seeking out support and resources when needed, and cultivating a sense of resilience and perseverance in the face of adversity.
Believing in oneself is not always easy, but it is an essential ingredient for success, well-being, and personal growth. By overcoming the challenges of negative self-talk, fear of failure, and setbacks and obstacles, we can cultivate a positive attitude and a strong sense of self-belief that will help us to achieve our goals and fulfill our potential.
Conclusion
Believing in oneself is an essential aspect of personal growth and development. It can lead to increased self-esteem, self-confidence, and motivation. When people believe in themselves, they are more likely to achieve their goals and overcome challenges.
Self-efficacy, or the belief in one's ability to succeed, is a crucial component of believing in oneself. It is essential to recognize one's strengths and weaknesses to develop a realistic sense of self-efficacy. People with high self-efficacy are more likely to set challenging goals and persist in the face of obstacles.
Believing in oneself can also lead to increased well-being and happiness. When people believe in themselves, they are more likely to take risks, try new things, and pursue their passions. This can lead to a sense of fulfillment and purpose in life.
On the other hand, a lack of belief in oneself can lead to feelings of anxiety, depression, and hopelessness. It can be challenging to achieve goals and overcome obstacles when one does not believe in oneself. Therefore, it is essential to cultivate a sense of self-belief to lead a fulfilling and successful life.
In conclusion, believing in oneself is crucial for personal growth, development, and well-being. It can lead to increased self-esteem, self-confidence, and motivation, while a lack of belief in oneself can lead to negative emotions and hinder personal growth. Therefore, it is essential to cultivate a sense of self-belief to achieve success and happiness in life.
Affiliate marketing is a popular marketing strategy that has been around for decades. It is a performance-based marketing model where an affiliate partner promotes a product or service made by another retailer or advertiser using an affiliate link. The affiliate partner is rewarded a payout for providing a specific result to the retailer or advertiser, typically a sale.
The concept of affiliate marketing is relatively simple, but the process itself can involve a lot of moving pieces. At its core, though, affiliate marketing simply means that you sell someone else's stuff and earn money for it. It is a win-win situation for both the retailer and the affiliate partner as the retailer can reach a wider audience, while the affiliate partner can earn a commission for every sale made through their affiliate link.
In recent years, affiliate marketing has become increasingly popular due to the rise of e-commerce and the ease of conducting business online. As such, it has become an essential part of modern digital marketing, and many businesses are now incorporating affiliate marketing into their overall marketing strategy. Understanding the basics of affiliate marketing is crucial for anyone looking to start their own affiliate marketing business or for businesses looking to incorporate this strategy into their marketing plan.
What is Affiliate Marketing?
Definition
Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. Essentially, it is a way for businesses to increase their sales by partnering with individuals or other businesses who promote their products or services.
How Does Affiliate Marketing Work?
The process of affiliate marketing typically involves four parties: the merchant (business), the affiliate (publisher), the network, and the customer. The merchant creates a product or service and offers it to affiliates to promote. The affiliate then promotes the product or service to their audience through various marketing channels, such as their website, social media, or email marketing. When a customer clicks on the affiliate's unique affiliate link and makes a purchase, the affiliate earns a commission from the merchant.
Different Types of Affiliate Marketing
There are several types of affiliate marketing, including:
Pay-per-click (PPC) affiliate marketing: Affiliates earn a commission each time a customer clicks on their affiliate link and is directed to the merchant's website.
Pay-per-lead (PPL) affiliate marketing: Affiliates earn a commission when a customer clicks on their affiliate link and completes a specific action on the merchant's website, such as filling out a form or signing up for a free trial.
Pay-per-sale (PPS) affiliate marketing: Affiliates earn a commission when a customer clicks on their affiliate link and makes a purchase on the merchant's website.
Benefits of Affiliate Marketing
Affiliate marketing has several benefits for both merchants and affiliates. For merchants, it is a cost-effective way to increase sales and reach a larger audience. They only pay affiliates when they generate a sale, so there is no risk of wasting money on ineffective marketing efforts. For affiliates, it is a way to earn passive income by promoting products or services they believe in. It also allows them to monetize their website or social media following without having to create their own products or services.
Challenges of Affiliate Marketing
While affiliate marketing has many benefits, it also comes with its own set of challenges. One of the biggest challenges is finding the right affiliates to promote a product or service. Not all affiliates will be a good fit for every product or service, so it is important to carefully vet potential affiliates to ensure they are a good fit. Another challenge is keeping track of affiliate sales and commissions, especially if there are multiple affiliates promoting the same product or service. This can be time-consuming and require the use of specialized software or tools.
Gold flirts with a record high after three days of consecutive gains
Gold futures have traded almost $100 higher from Tuesday's open to today's intraday high. Gold opened at approximately $1990 on Tuesday and closed at approximately $2022 after factoring in a daily gain of over $30. Yesterday gold had a moderate gain moving the most active June contract to an intraday high of $2049 and closing at approximately $2037.
However, today's range was the largest of the last 3 days trading to a low of $2038.50 and a high of $2085.40. As of 5:50 PM EDT most active June Comex gold contract is fixed at $2058.60 after factoring in a gain of $21.60 gaining just over 1%.
The Federal Reserve raised rates by ¼% yesterday, taking its benchmark Fed funds rate to its highest level since 2008. In fourteen months, the Fed has raised rates a total of ten times, once at every FOMC meeting since March 2022.
The Fed has taken its benchmark rate from near zero to between 5% and 5 ¼ %. More importantly, the Fed indicated it is ready to pause raising rates as it gauges the net effect of the rate hikes already implemented.
According to the CME's FedWatch tool, there is a 79.5% probability that the Federal Reserve will pause at its June FOMC meeting and maintain its current benchmark rate between 5% and 5 ¼%. However, more startling is the probability of 20.5% that the Federal Reserve will implement an interest rate cut of ¼%. This goes against the strong narrative and resolve that the Fed has maintained since the release of the December 2022 "Dot Plot".
Pausing rate hikes at the next FOMC meeting is an extremely logical move for the Federal Reserve. This will allow the Fed to assess the damage from recent bank failures, and gauge inflationary levels which will lag behind rate hikes already implemented by the Federal Reserve. A pause would also allow the Fed to wait for a resolution over the US debt ceiling dilemma.
The chart above is a weekly chart of the continuous contract of gold futures. The horizontal line is placed at the record high. The most likely outcome of this rally will be that the triple top will be taken out and result in a new record high for the price of gold.
Gold's recent push near all-time highs was just a test run as Citigroup's Morse sees prices hitting $2,400
