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Gold Surges as Cooling Inflation Raises Hopes for September Rate Cut

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Gold Surges as Cooling Inflation Raises Hopes for September Rate Cut

The latest economic data has sparked renewed optimism in the gold market, with prices climbing over $20 as investors digested signs of cooling inflation and robust economic growth. This positive sentiment comes as the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, shows continued

progress in the battle against rising prices.

According to the Bureau of Economic Analysis, headline inflation declined to 2.5% annually last month, down from May's 2.6%. The core PCE, which excludes volatile food and energy costs, held steady at 2.6%, slightly above Wall Street's forecast of 2.5%. This data suggests that the Fed's restrictive monetary policy is yielding results, bringing inflation closer to its 2% target.

Adding to the positive economic outlook, the advance estimate of second-quarter GDP surpassed expectations, coming in at a robust 2.8% annualized growth rate. This figure, well above the predicted 2%, demonstrates the economy's resilience despite interest rates reaching a 23-year high.

These encouraging reports have fueled speculation about the Fed's next moves. While the probability of a rate cut at next week's FOMC meeting remains low at 4.7%, market sentiment has shifted dramatically for the September meeting. The CME's FedWatch tool now predicts a 100% likelihood of a rate cut in September, with an 87.7%

probability of a quarter-point reduction.

This optimism has translated into significant gains across financial markets. The Dow, S&P 500, and NASDAQ composite indices all rose over 1%. Gold futures basis the most active August contract jumped 0.96% to settle at $2,386. The precious metal's price has now surpassed its 50-day simple moving average, with technical analysis

suggesting price support at $2,350.

As the Fed navigates the delicate balance between taming inflation and supporting economic growth, investors are closely watching for signs of a pivot toward interest rate normalization. The central bank's actions in the coming months could have far-reaching implications for gold prices and the broader financial landscape.

With inflation cooling and economic indicators showing strength, the stage is set for potentially significant market movements.

Kitco Media

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

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The US Economy demonstrates unexpected strength in Q2 2024

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The U.S. Economy demonstrates unexpected strength in Q2 2024.

The Bureau of Economic Analysis (BEA) released its advance estimate of second-quarter GDP growth, revealing unexpected strength in the U.S. economy. Despite economists' predictions of a 2% annualized growth rate, the actual figure came in at a robust 2.8%, surpassing expectations and demonstrating resilience in the face of

interest rates at a 23-year high.

This growth represents a significant acceleration from the first quarter's 1.4% increase, indicating a strengthening economic trajectory. The report highlighted substantial contributions from both the services and goods sectors, driving consumer spending upward.

In the services category, healthcare, housing, utilities, and recreational services were the primary growth drivers. The goods sector saw notable increases in motor vehicle parts, recreational goods and vehicles, furnishings and durable household equipment, as well as gasoline and other energy goods.

The stronger-than-anticipated economic performance has implications for various market sectors. Individual investors may find less incentive to allocate funds to safe#haven assets, given the economy's resilience.

Additionally, the Federal Reserve may reconsider its timeline for normalizing interest rates, potentially delaying the anticipated

first rate cut in September.

These factors have led to a sell-off in the gold market, with the precious metal experiencing downward pressure. The most active August gold contract declined by $34.10, or 1.42%, closing at $2,363.40, after opening just below $2,400 in Australia.

This movement reflects the market's response to the robust economic data and its potential impact on monetary policy.

As market participants digest the GDP report, attention now shifts to the upcoming Personal Consumption Expenditures (PCE) inflation index for June, set to be released by the Bureau of Economic Analysis. This report holds particular significance as the core PCE is the Federal Reserve's preferred measure of inflation.

Economists anticipate a slight increase in the monthly core PCE, rising to 0.10% from May's 0.08%. However, on an annual basis, core PCE is expected to show a modest decrease in inflation, from 2.6% in May to 2.5% in June. The Federal Reserve of Cleveland's nowcasting model suggests an even lower figure of 2.4% year-over-year.

If tomorrow's PCE report shows that core inflation continues to cool, it should provide bullish tailwinds taking gold prices higher.

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

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Economic Data Poised to Shape Fed Decision and Market Outlook

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Economic Data Poised to Shape Fed Decision and Market Outlook

As July draws to a close, investors and Federal Reserve officials alike are poised on the edge of their seats, eagerly awaiting two crucial economic reports that will shed light on the health of the U.S. economy. These reports, set to be released on Thursday and Friday, will provide pivotal information just days before the Federal Open Market Committee (FOMC) convenes for its July meeting.

On Thursday, July 25, the Commerce Department will unveil its first estimate of second-quarter GDP growth. Economists are forecasting an annualized growth rate of 2%, a significant uptick from the 1.4% recorded in the first quarter. This data will offer valuable insights into the economy's resilience and trajectory.

Following closely on its heels, the Bureau of Economic Analysis will release the Personal Consumption Expenditures (PCE) inflation index for June on Friday, July 26. This report is particularly significant as the core PCE is the Fed's preferred measure of inflation. Economists anticipate the core PCE, which excludes volatile food and energy

prices, to have risen by 0.10% on a monthly basis, a slight increase from May's 0.08%.

On an annual basis, both headline and core PCE are expected to show a modest decrease in inflation, from 2.6% in May to 2.5% in June.

These reports will play a crucial role in shaping the Fed's monetary policy decisions.

Currently, there's a 93.3% probability that the Fed will maintain its benchmark interest rate between 5.25% and 5.50% at the upcoming July meeting.

FedWatch Tool chart (PNG) for September

Investors are pricing in multiple scenarios for potential rate cuts in September. The CME's FedWatch tool indicates an 89.6% probability of a 0.25% rate cut, a 10.2% chance of a 0.50% cut, and a newly added 0.3% possibility of a 0.75% cut. This last scenario would bring the Fed funds rate down to between 4.50% and 4.75%, signaling a significant shift in monetary policy.

Daily gold chart

The anticipation of these reports and their potential impact on Fed decisions has already influenced financial markets. Gold futures, often seen as a hedge against economic uncertainty, have shown volatility. The most active August contract opened at $2,410.70, and reached a high of $2,433, before settling near the day's low at $2,397.

As market participants and policymakers alike await these critical economic indicators, the coming days promise to be pivotal for the U.S. economic outlook. The interplay between GDP growth, inflation trends, and the Fed's response will likely set the tone for financial markets in the months ahead.

Kitco Media

Gary Wagner

Time to Buy Gold and Silver

Tim Moseley

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Solana Gains Momentum Defying All Odds SOL Set For Serious Gains

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Solana Gains Momentum Defying All Odds. SOL Set For Serious Gains

Many altcoins have experienced significant declines exceeding 40% since March, yet a few have shown remarkable strength. Solana stands out as one of these resilient altcoins, prompting speculation about its potential for a bullish surge once the cryptocurrency market reaches a parabolic phase. In this article, we will explore Solana's recent developments and discuss the possibility of SOL reaching new heights in the upcoming months. Whether you are already invested in SOL or contemplating adding it to your portfolio, this information is essential reading.

Significant developments have unfolded in the brief span of three months since the last Solana update. Notably, Solana surpassed Ethereum regarding stablecoin trading volumes, a milestone achieved during a mini-surge in altcoins in March, and Solana was a vital driver of this trend. Notably, SOL’s value peaked just before the FTX estate revealed its plan to offer 41 million SOL tokens to investors at a substantial 68% discount, amounting to approximately $7.6 billion.

FTX completed its over-the-counter (OTC) sales in May, but a crucial aspect to consider is that these deals are tied to a four-year vesting period. This means that when the buyers eventually sell their SOL, they will likely face minimal albeit steady selling pressure. 

Solana Memecoins, Payments 

Solana's surge in popularity can be attributed to the numerous memecoins created on its platform, particularly after the launch of Pump.fun memecoin generator in March. This memecoin hype caused a significant increase in transaction fees, which led to Solana surpassing Ethereum in terms of fees generated. However, the high volume of memecoin transactions caused congestion issues on Solana's blockchain, and despite not experiencing any actual outages, it was severely impacted, rendering the network nearly unusable.

Congestion problems first appeared in April and have since been a significant factor in the fear, uncertainty, and doubt (FUD) surrounding SOL’s price. Solana's validators then implemented a technical upgrade to address the congestion problems, yet they continue to affect some users. Despite this, institutional investors remain unfazed and continue to include SOL in their crypto portfolios.

According to a report by CoinShares, 15% of institutional investors surveyed have raised their investments in SOL since the beginning of the year. Some of these investors likely obtained their exposure through FTX OTC sales. Another positive development for Solana occurred in April when it was announced that Stripe, a major payment processor, would enable USDC payments on multiple blockchains, including Solana.

The importance of Solana's self-positioning as a blockchain for crypto payments cannot be overstated. The announcement in May that PayPal had introduced its PYUSD stablecoin on Solana's platform is particularly noteworthy. In an open letter, PayPal explained its decision to build on Solana, highlighting the network's rapid finality and low fees. Additionally, they emphasized their intention to utilize PYUSD on Solana for commerce and payment purposes, citing its confidential transfer feature. This development could catapult Solana's value to unprecedented heights, with stablecoin payments emerging as a game-changing use case.

June was a whirlwind of activity for Solana. Following the news of its collaboration with PayPal, institutional investors significantly increased their investment in SOL. But they weren't the only ones eager to get in on the action—Circle, the issuer of USDC, also revealed plans to introduce enhanced stablecoin features on the Solana platform.

It’s worth mentioning that Solana is identified as the designated blockchain platform for USDC, as stated in a blog post by Circle. The current status of this arrangement is uncertain following the dissolution of the Center Consortium in August 2023, which was composed of Coinbase and Circle.

Solana Enhancements, ETFs, Regulations  

Solana has made significant iterations, including introducing Solana Actions and blockchain links (Blinks). These innovative tools enable seamless integration of blockchain transactions into various platforms, providing a user-friendly Web3 experience. With Solana Actions, users can efficiently execute on-chain transactions across different platforms, including websites, social media, and physical QR codes, allowing for enhanced flexibility and convenience.

With Solana Blinks, any action can be converted into a shareable link, enabling any website or platform that supports URLs to initiate a Solana transaction using a Solana wallet. This innovative feature seamlessly integrates on-chain transactions into various online platforms, including websites and social media, eliminating the need for users to navigate away from their current page. Thus, decentralized apps become more accessible, intuitive, and user-centric. Most would say that’s pretty remarkable! 

However, what’s not so remarkable is the concerning development of the CFTC, which is investigating Jump Crypto, a crucial entity within the Solana network. Jump Crypto has played a vital role in shaping Solana's infrastructure, having contributed to the creation of the Pith Network Oracle and the Wormhole bridge and collaborating on the development of Solana's Fire Dancer client. The potential implications of this investigation on Solana's growth are uncertain. They may hinge on the extent to which other companies within the ecosystem are involved in developing Fire Dancer.

Thankfully, the attention Solana received regarding the Jump Crypto CFTC investigation has been overshadowed by the announcement that VanEck had applied for a Solana ETF in June. Nevertheless, despite the recent greenlighting of similar ETFs for Ethereum, industry insiders believe it's unlikely that Solana will receive ETF approval anytime soon.

However, several analysts have pointed out that the approval of a SOL ETF may become more feasible if there is a change in the presidential administration following the November elections, as this could lead to a shift in leadership of the SEC. Despite being a challenging prospect, a growing consensus across party lines in Congress supports cryptocurrency. Bloomberg ETF analyst Eric Balchunas emphasized that the deadline for the SOL ETF approval is expected to be around March next year. Additionally, 21Shares submitted an ETF application after VanEck, and it is anticipated that other asset managers may also pursue similar ETF offerings, opening up exciting possibilities for SOL's future.

Predictions regarding the impact of a potential SOL ETF on the price of SOL vary widely, similar to the discussions around Bitcoin and Ethereum ETFs. While some forecasts suggest that the ETF may have minimal influence on SOL's price, others anticipate a significant surge, possibly exceeding its current value by nine times. One piece of evidence supporting the bullish outlook is the substantial premium at which Grayscale’s Solana Trust (GSOL) is trading in comparison to its net asset value, indicating institutional optimism.

According to CoinBureau's crypto specialists, SOL's optimal price ceiling during a strong market surge is estimated to be around $1200. Notably, this forecast aligns with the 9x growth predictions made by other industry experts, and those ETFs will likely launch when the crypto bull market reaches its most enthusiastic and optimistic peak, potentially leading to a significant surge in SOL's price.

SOL Price Outlook

SOL has been an outlier among altcoins, bucking the trend of recent price crashes. Instead, it has been trading within a tight range of $130 to $200 since late February. It is essential to highlight that a similar scenario is observed with Bitcoin, Ethereum, and other major altcoins. Typically, periods of consolidation are followed by significant breakouts either above or below the established range.


Source: CoinBureau.com

The chart above indicates that SOL could reach $300 if it breaks out upwards in the upcoming weeks or drop to $90 if it breaks out downwards in the same period. However, predicting the direction SOL will take is not determined by knowing its potential high or low points. To resolve this, we need to examine the factors influencing the new supply, such as selling pressure, and the factors driving demand, known as buying pressure.

The price is influenced by supply and demand dynamics. SOL's supply has reportedly risen by approximately 20 million units over the past three months. If all the newly supplied tokens were sold, SOL trading at an average price of $150 could have resulted in up to $3 billion worth of selling pressure in under four months. However, despite this significant supply increase, the demand for SOL seems even more extraordinary.

A few key statistics to consider:

  1. Notably, the Phantom wallet has surpassed 4 million downloads, marking a significant milestone. It was reported to have reached 3 million downloads just a few months prior, as highlighted in a recent Solana updates article, showcasing its rapid growth.
  2. DAP radar indicates that Solana has recorded over 5.5 million unique active wallets in just three days. This figure represents four times the 1.4 million wallets recorded in March. Additionally, DApp Radar has observed a 50% rise in active wallets within the past month.
  3. Solana's DeFi protocols have maintained a total value locked of approximately $4.7 billion, even as the price of SOL has dropped by 20 – 30% from its recent peaks. This is noteworthy as it indicates that fresh funds are flowing into Solana's DeFi protocols despite the decrease in price and the overall negative market sentiment.
  4. Furthermore, this trend is supported by data from Solscan's analytics page, which shows that the daily number of active Solana wallets has remained stable, hovering around the 900,000 mark.


Source: Solscan

Solana’s Roadmap And Catalysts That Could Boost SOL

Returning to SOL's current and future price action, its resilience can be attributed to the strong demand aspect of the supply-demand dynamic. The ongoing uptrend in the factors driving demand indicates a greater likelihood of SOL breaking higher. Put simply, there is a higher probability of SOL surging to $300 in the coming weeks than plummeting to $90, representing a significant 50% increase from its current value. However, it's important to note that a break above $200 is required for this scenario to play out, and that would need a catalyst to trigger it.

It just so happens that Solana has a slew of forthcoming milestones that could act as a growth catalyst. One of the most significant is Fire Dancer, a cutting-edge validator client generating much buzz. To provide a quick update, Fire Dancer is a game-changer because it has the potential to enhance Solana's speed significantly. A member of the Fire Dancer team shared that it will initially boost Solana's transaction capacity to 20,000 transactions per second (TPS) with plans to increase that number to a whopping 1 million TPS gradually.

Solana has achieved a peak speed of approximately 7,000 TPS to date. However, its maximum potential TPS is believed to be around 65,000. A Fire Dancer team member disclosed that the actual figure is nearer to 200,000 TPS. Nevertheless, exceeding the indicated TPS level brings about significant challenges, implying that scaling up to 1 million will necessitate additional modifications.


Source: Chainspect

Concerning the project schedule, Anatoly Yakovenko, the founder of Solana, has repeatedly stated in interviews that his team aims to launch the initial version before the September Breakpoint conference. The recent announcement of a bug bounty program for Fire Dancer suggests that the release will likely happen sooner rather than later. However, it’s worth noting that Jump Crypto, a company assisting with the development of Fire Dancer, is currently under investigation by the CFTC, which may impact the project's timeline.

Additionally, Solana has experienced a string of technical problems in the past. A team member from Solana's Jito validator client recently shared in an interview that Fire Dancer may also face some challenges. If Fire Dancer propels SOL above the $200 mark, the driving force behind its surge past $300 will likely be unveiled at Breakpoint.

Notably, previous conference announcements have significantly impacted the price. In addition to Fire Dancer and any other announcements to be made at the conference, Solana has two other important events coming up that could increase the value of SOL. One of these is creating a formal on-chain governance structure, a topic discussed in Solana’s forums. 

A well-defined governance framework can help Solana shift towards a more decentralized model, which may alleviate the regulatory pressure the SEC has exerted on it. In case you missed it, the SEC has identified SOL as an unregistered security in its legal actions against major cryptocurrency exchanges Binance and Coinbase.

A crucial upcoming development that could propel SOL's growth is the potential passage of stablecoin-related legislation in the US, although its timing is uncertain. Austin Federa, Solana Foundation's strategy head, recently asked crypto-friendly politician Bill Haggerty in an interview about this matter. Unfortunately, Haggerty's response suggested that the regulatory approval process would be prolonged due to ongoing Democratic opposition in the Senate despite widespread bipartisan support. This delay may be why major SOL stakeholders have been increasing their financial backing of Republican candidates.

The outlook for Solana over the next eight months is quite eventful. With Fire Dancer on the horizon, followed by the pivotal Breakpoint event, upcoming stablecoin regulatory developments (should the Republicans prevail in the November elections), and a potential ETF launch early next year (again, contingent on a Republican win), the path is paved for SOL to potentially reach the $1000 mark before the crypto market's bull run concludes. However, achieving this feat will hinge on various external factors beyond Solana's control falling into place.

Solana Challenges

One of the primary obstacles facing Solana is regulatory issues. Despite the optimism around stablecoin payments, the negative impact of the Jump Crypto CFTC investigation cannot be ignored. If the legal proceedings escalate to the point where Jump is forced to reduce its involvement in the cryptocurrency sector, it could have significant consequences. This scenario is not merely a matter of speculation.

The leader of Jump's crypto business resigned recently. If a major company within the Solana network reduces its operations, it could considerably delay the progress of Fire Dancer and similar projects. The Securities and Exchange Commission's (SEC) continued examination of Solana as a financial asset is expected to persist for the foreseeable future. Moreover, if the Democratic party gains control of Congress in the upcoming election, Solana can likely expect even more rigorous oversight.

Solana faces a second hurdle: stiff competition. With its impressive speed, it's easy to overlook that it's not the only high-performance Layer 1 blockchain on the scene. Rivals like Aptos and Sui, dubbed "Solana killers," are rapidly gaining traction in the Layer 1 space. Anatoly has publicly expressed concerns about these projects' threats, and for good reason. The technology behind Aptos and Sui has been years in the making, originating from Facebook's Libra project, underscoring the significant resources and expertise behind these emerging competitors.

In any case, Aptos and Sui possess a dual advantage, boasting cutting-edge technology and established connections. Furthermore, developers have found the Move programming language highly accessible and easy to work with. Although Aptos and Sui have not yet reached the same level of adoption as Solana, any technical glitches experienced by Solana could prompt a mass exodus, similar to how alternative platforms gained traction when Ethereum's high gas fees became prohibitively expensive.

This leads to the third hurdle, namely development complexity. Solana's developers, including Anatoly, often joke that building on Solana is as painful as "chewing on glass," making it precarious when rival platforms offer seemingly effortless coding experiences. A notable example is Soulend, formerly one of Solana's most prominent DeFi protocols, which has opted to deploy on Sui as Suilend. While this doesn't imply that Solend has completely abandoned Solana, it does suggest that developers and projects within the Solana ecosystem are actively exploring alternative blockchain options.

The Bottom Line 

Despite everything mentioned, Solana stands out as a leading cryptocurrency project, and its native coin, SOL, is expected to achieve significant growth in the near future. If Solana successfully tackles its obstacles and achieves its milestones, SOL could pleasantly surprise investors. Many experts in the crypto space share this sentiment, predicting that Solana will be among the top-performing large-cap cryptocurrencies. 

Some believe that SOL may even lead the pack regarding percentage gains, which could positively impact the altcoins within the Solana ecosystem. They may also witness substantial gains compared to their counterparts, potentially leading to impressive growth.

Many will know that Markethive’s token, Hivecoin (HVC), has been successfully integrated into the Solana blockchain. Solana stands out as the only blockchain capable of meeting the massive demands of Markethive's decentralized social market broadcasting network, which generates ever-increasing amounts of data and content. Other blockchains lack the technological capabilities to support an application of this scale and complexity.

Projects like Markethive that have pioneered a specific field and offer genuine utility to the broader community possess a unique advantage. Markethive belongs to the category of first movers and provides a wide range of practical applications, enabling it to gain a significant portion of the market. 

Leveraging Solana's technology, Markethive is well-positioned to become the premier choice for a decentralized, uncensored platform that integrates all aspects of social media, marketing, broadcasting, publishing, eCommerce, and business facilitation thereby creating a thriving entrepreneurial ecosystem for individuals from all backgrounds. 

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

 


 

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

 

 

 

 

Tim Moseley

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BlackRock’s Spot Bitcoin ETF

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BlackRock’s Spot Bitcoin ETF Pulls In Largest Daily Inflow Since Mid-March At $527 Million

By Brenda Ngari – July 24, 2024

BlackRock’s blockbuster spot Bitcoin exchange-traded fund (ETF) attracted $526.7 million in investor funds on July 22, logging its largest single day of inflows since March 13 as investors’ appetite for spot Bitcoin products continued to increase.

IBIT’s Record-Breaking Inflow

BlackRock’s Bitcoin ETF drew $526.7 million in net inflows on Monday.

The July 22 inflows bring the total assets under management for the iShares Bitcoin Trust ETF to 333,000 BTC, valued at around $22 billion at current prices.

IBIT recorded its highest single-day tally on March 18, when it drew in $848 million worth of BTC. The second-largest day on record happened on March 5, when $789 million was added to the fund, per data from UK-based investment firm FarSide Investors.

Overall, the 11 Bitcoin ETFs saw $533.57 million worth of inflows yesterday, with BlackRock’s IBIT, of course, accounting for a giant share of the cumulative inflows. IBIT’s inflow was followed by $23.73 million from Fidelity’s FBTC. Invesco and Galaxy’s BTCO recorded a $13.65 million inflow, while Franklin Templeton’s ETF pulled in $7.87 million.

In the meantime, VanEck’s HODL amassed $38.36 million. Grayscale’s GBTC, Ark Invest, and 21Shares’ ARKB registered zero inflows on Monday.

Bitcoin momentarily rose above $68,000 yesterday, hitting its highest level in more than a month. The bullish move happened amidst a dramatic improvement in the probability of pro-crypto Republican presidential candidate Donald Trump winning his reelection in November. There has also been speculation that Trump will announce a game-changing role for BTC in the U.S. financial system at the upcoming Bitcoin conference in Nashville, on July 27.

However, the bulls were unable to withstand the bullish momentum, paving the way for a fresh retracement. According to CoinGecko data, Bitcoin traded at around $66,661 at the time of writing, down 1.5% on a 24-hour basis.

The large inflows to BlackRock’s fund came on the same day that the Securities and Exchange Commission (SEC) approved a batch of spot Ethereum ETFs for trading on U.S. stock exchanges.

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

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

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

Tim Moseley

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What’s keeping silver down while gold hold above 2400?

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What’s keeping silver down while gold hold above $2,400?

Gold has been able to maintain a solid uptrend, building a new base with each rally; however, this momentum has not filtered through the entire sector as silver struggles to find its footing.

While gold is fighting for support at higher lows around $2,400 an ounce, silver is struggling around $29 an ounce. Silver's underperformance compared to the yellow metal has pushed the gold/silver ratio to its highest level in two months, back above 82 points.

The gold/silver ratio has jumped 14% from its multi-year lows seen in May. September silver futures last traded at $29.185 an ounce, down 0.45% on the day; meanwhile, August gold futures last traded at $2,405 an ounce, up 0.43% on the day.

Some analysts have said that gold is benefiting as a safe-haven asset because of rising geopolitical uncertainty, fueled by the U.S. elections in November.

“Silver usually follows the price movements of gold disproportionately. However, this has recently only applied to the downside. The previous upward movement in gold following the US inflation figures was more or less ignored by silver,” said Carsten Fritsch, Commodity Analyst at Commerzbank. “The relative weakness in silver is likely due to the weakness in base metals. This is because industrial applications are expected to account for almost 60% of silver demand this year.”

Commerzbank noted that base metals are struggling due to weakening demand in China; however, the analysts said that the selloff in base metals is overdone.

“On the one hand, the rate cuts by the central banks that have already been made, and those still to come in the coming months, should lead to an economic upturn, which should brighten the currently very negative market sentiment,” the analysts said. “On the other hand, the lower price level should put pressure on metal producers to curb production.”

Although silver continues to struggle, many investors are still not ready to give up on the precious metal.

In a recent interview with Kitco News, Robert Minter, Director Of Investment Strategy at abrdn, said that he expects silver to eventually outperform gold as the Federal Reserve starts to cut interest rates.

“Looking at the last three rate cycles, in 2000 gold went up 57%, but silver went up 65%; in 2006, gold went up 235%, but silver went up 318%; and in late 2018, gold went up 69%, but silver went up 101%,” he said. “Silver is the higher beta play.”

In a comment to Kitco News, Julia Cordova, Founder of Cordovatrading.com, said that while silver is struggling, she remains optimistic that it can regain its luster.

“Silver followed through on the confirmed weekly bearish divergence from last week, and the weekly close was outside of the possible pennant structure to the downside, but I think it is likely to outperform the yellow metal this week if it can regain $29.855. $28.41 is strong support," she said.

While silver has managed to push back above $29 an ounce, James Hyerczyk, Senior Technical Analyst at FXempire, said that the key support level to watch is around $28.50 an ounce.

“The short-term outlook for silver appears bearish. The metal’s dual nature as both a precious and industrial metal is currently working against it,” he said. “Traders should watch for a potential break below the $28.57 support level, which could trigger further downside. However, upcoming economic data, shifts in Fed policy expectations, or changes in industrial demand could provide volatility and potential turning points in the silver market.”

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Neils Christensen

Time to Buy Gold and Silver

Tim Moseley

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Understanding Quantum Computers: A New Era in Computing

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Understanding Quantum Computers: A New Era in Computing

Recently, my friend Marques and I had the unique opportunity to visit IBM and see a quantum computer up close. Quantum computers are fascinating and hold the potential to revolutionize what we can achieve with computers. However, they are not simply a better, faster version of the current computers we use. Instead, they are something entirely different, designed for unique tasks and problems.

Understanding Quantum Computers: A New Era in Computing

THE DIFFERENCE BETWEEN CLASSICAL AND QUANTUM COMPUTERS

To understand the difference, let’s use an analogy. Imagine you are navigating a video game map, and your progress depends on your mathematical skills. Not having a computer is like walking; you can explore a lot, but it takes a long time. When we invented classical computers, they were like cars. We could travel farther and faster than before.

Over time, our classical computers improved, becoming faster and more efficient. However, quantum computers are not just faster cars. They are more like boats. A boat is not inherently better or worse than a car; it is simply designed for a different terrain. Quantum computers allow us to navigate different mathematical waters, finding solutions that traditional computers cannot.

THE POTENTIAL OF QUANTUM COMPUTING

Quantum computers leverage the principles of quantum mechanics to perform computations in ways classical computers cannot. This opens up a whole new world of possibilities. For instance, they can solve complex optimization problems, simulate molecular structures for drug discovery, and enhance machine learning algorithms.

While classical computers use bits to process information, which can be either 0 or 1, quantum computers use quantum bits or qubits. Qubits can exist in multiple states simultaneously, thanks to the principles of superposition and entanglement. This allows quantum computers to process a vast amount of information simultaneously, significantly speeding up certain types of computations.

QUANTUM COMPUTING APPLICATIONS

Quantum Computing Applications

One of the most promising applications of quantum computing is in the field of cryptography. Current encryption methods rely on the difficulty of factoring large numbers, a task that classical computers struggle with. However, quantum computers could potentially break these codes much more quickly, necessitating new cryptographic techniques.

Another exciting application is in material science. Quantum computers can simulate the behavior of molecules and materials at the quantum level, which could lead to the discovery of new materials with unique properties. This has implications for everything from energy storage to superconductors.

THE CHALLENGES AHEAD

Despite their potential, quantum computers are still in the early stages of development. Building and maintaining a quantum computer is incredibly challenging due to the need for extremely low temperatures and isolation from environmental noise. Quantum error correction is another significant hurdle that researchers are working to overcome.

Moreover, developing algorithms that can leverage the power of quantum computing is a complex task. Researchers are still exploring the best ways to utilize quantum computers for practical applications. However, the progress made so far is promising, and the future of quantum computing looks bright.

THE FUTURE IMPACT OF QUANTUM COMPUTING

As quantum computers become more advanced, they will likely have a profound impact on various industries. From pharmaceuticals to finance, the ability to solve complex problems more efficiently could lead to breakthroughs that were previously unimaginable.

Quantum computing represents a paradigm shift in how we approach computation. It is not just about making things faster but about enabling entirely new types of problem-solving. As we continue to explore the potential of quantum computers, we are likely to discover new applications and opportunities that we cannot yet foresee.

Understanding Quantum Computers: A New Era in Computing

CONCLUSION

Quantum computers are more than just a faster version of our current machines; they represent a new way of thinking about computation. By navigating different mathematical waters, they open up possibilities that were previously out of reach. While there are still many challenges to overcome, the potential benefits of quantum computing are immense.

For those interested in learning more, I have created a longer video discussing what we hope to find in these new mathematical waters and how quantum computers might impact our lives. Be sure to watch it, and if you enjoy optimistic tech videos, follow for more updates!

https://rtateblogspot.com/2024/07/04/emerging-technologies-poised-to-revolutionize-our-future-from-3d-printed-hearts-to-ai-driven-innovations/

Tim Moseley

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Gold prices fell sharply on Friday adding to two previous days of losses after the US dollar strengthened putting precious metals prices under pressure

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Gold prices fell sharply on Friday, adding to two previous days of losses, after the US dollar strengthened, putting precious metals prices under pressure.

Prices fell as low as $2,395 an ounce on Friday, down from a high of $2,475 an ounce on Thursday. The latest losses come in the context of a fresh all-time high of $2,484 an ounce seen on Wednesday, which came as the markets reacted to softer than expected inflation in June and a strengthening of expectations that the US Fed will start to cut interest rates in September.

KAU/USD 1-hourly Kinesis Exchange

The US dollar strengthened against other major currencies on Thursday and Friday after data showed that manufacturing in the US mid-Atlantic region increased more than expected in July after a surge in new orders.

A stronger US dollar makes dollar-denominated gold more expensive for buyers in other currencies, weakening demand and contributing to gold price weakness.

Gold’s fall through the second half of the week means the yellow metal has re-visited the price levels of $2,400 an ounce seen in the previous week ending July 12.

Despite gold’s price slump this week, from a technical standpoint, the charts suggest a cautiously bullish outlook. This is based on a combination of prices testing support at around $2,300 an ounce multiple times in May and June, and successively higher peaks seen in April, May and July. Taken together, these price movements indicate a solid support base and a willingness to test further upside.

On the political front, the uncertainty level was cranked up a notch over the weekend after US President Joe Biden announced he would be stepping down from the presidential race ahead of the November 5 election, leaving questions over who will lead the Democrats’ re-election bid. A growing number of senior Democrats are backing vice-president Kamala Harris, according to news reports over the weekend.

Looking ahead, Tuesday will see the release of Euro Area consumer confidence figures for July, while a flurry of industry and manufacturing figures are due out on Wednesday next week, including from Japan, India, the Euro Area, UK and US.

The markets will also be watching out for Wednesday’s interest rate decision by the Bank of Canada, which is expected to cut rates to 4.5% after a cut to 4.75% in June from the previous 5%. The upcoming decision comes in the context of a start to rate cuts by other central banks, including the ECB in June. Meanwhile, the Bank of England has yet to start cutting rates, while the US Fed is widely expected to make cuts in September.

Time to Buy Gold and Silver

Tim Moseley

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Biden 81 pulls out of presidential race will serve out term

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Biden, 81, pulls out of presidential race, will serve out term

 

WASHINGTON, July 21 (Reuters) – U.S. President Joe Biden ended his reelection campaign on Sunday after fellow Democrats lost faith in his mental acuity and ability to beat Donald Trump, leaving the presidential race in uncharted territory.

Biden, in a post on X, said he will remain in his role as president and commander-in-chief until his term ends in January 2025 and will address the nation this week.

"It has been the greatest honor of my life to serve as your President. And while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term," Biden wrote.

By dropping his reelection bid, he clears the way for Vice President Kamala Harris to run at the top of the ticket, the first Black woman to do so in the country's history.

Biden, 81, did not mention her when he announced his move.

It was unclear whether other senior Democrats would challenge Harris for the party's nomination, who was widely seen as the pick for many party officials – or whether the party itself would choose to open the field for nominations.

Biden's announcement follows a wave of public and private pressure from Democratic lawmakers and party officials to quit the race after his shockingly poor performance in a televised debate last month against Republican rival Donald Trump.

Reporting by Kanishka Singh, Jeff Mason, Jarrett Renshaw and Steve Holland, Leah Douglas, Susan Heavey and Tyler Clifford; Editing by Heather Timmons, Daniel Wallis and Leslie Adler

Kitco Media

Reuters

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Tim Moseley

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Solana Sets Eyes on 250

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Solana Sets Eyes on $250 Thanks to a Major Rebound After Bottoming Out

By Brian Njuguna – July 21, 2024

As Solana (SOL) continues to enjoy notable bullish momentum, the fifth-largest cryptocurrency based on market value is eyeing a leg up that could see it surge to the $174 price level.

Recognizing this development, renowned market analyst Ali Martinez took to X, formerly Twitter, and acknowledged, “Solana appears to be forming a W pattern, which suggests SOL will surge toward $174.”

W pattern or double bottom indicates a bullish price movement since an asset has bottomed two times at the same price level. As a result, it presents a buy-the-dip opportunity.

Based on the above chart, Solana has already formed consecutive bullish candles, which is why Martinez believes that SOL will reach $174.

According to CoinGecko data, Solana was up by 12.5% in the past week to hit $171.70 at the time of writing.

Is Solana Gearing up for an ETF?

With exchange-traded fund (ETF) having already gained significant momentum in the crypto market, Solana might be eyeing this field, according to senior Bloomberg analyst Eric Blachunas.

The analyst pointed out, “After the launch of Ether ETFs, there will be additional flows and more Ethereum products, then Solana, and it’s probably never going to end. The dam has broken.”

ETFs have been igniting the crypto fire, with Bitcoin being a major beneficiary since they helped the leading cryptocurrency hit a new all-time high (ATH) of $73,800 back in March.

On the other hand, Ethereum ETFs are scheduled to start trading later this month. Therefore, it remains to be seen whether Solana will follow Ethereum and Bitcoin’s footsteps.

Bullish signs have been popping up in the Solana ecosystem, given that the altcoin seems to be mirroring its 2021 pattern, and this has the potential of thrusting it to the $250 zone in the near future.

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

The original article written by Brian Njuguna and posted on Zycrypto.com.

Article reposted on Markethive by Jeffrey Sloe

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Tim Moseley

The Artist that came out of the Winter