Citi Forecasts Gold Prices Could Hit $3,000 Within a Year
Citi analysts predict that gold prices could reach $3,000 per ounce within the next 12 months due to strong physical demand, central bank purchases, and favorable macroeconomic factors. Despite potential fluctuations, prices are expected to stay above $2,000-2,200 per ounce, with significant increases anticipated in 2025. Factors supporting this forecast include resilience amid a strong […]
U.S. May Budget Deficit Soars to $347 Billion
The U.S. government reported a $347 billion budget deficit for May, significantly higher than the $240 billion deficit a year earlier. This increase is attributed to pre-payment of some June benefits and higher expenses for interest, Social Security, and defense. May’s outlays rose 22% from last year to $671 billion, partially due to early benefit […]
Fed Leaves Rates Steady, Projects Fewer Cuts in 2024 Amid Slower Inflation
The Federal Reserve announced it is keeping its key interest rate unchanged to combat high inflation, which, while easing, remains elevated. The economy continues to grow, with strong job gains and low unemployment. The Fed now forecasts only one rate cut in 2024, revising previous expectations of multiple cuts, as it aims to reduce consumer […]
Treasury Secretary Yellen: Debt Burden Sustainable at Current Levels
Treasury Secretary Janet Yellen stated that the U.S. national debt, currently at $34.7 trillion, is manageable if it remains stable relative to the economy. Despite high interest rates increasing the burden, Yellen emphasized the importance of focusing on the real interest cost of the debt. With net interest costs reaching $601 billion in the 2024 […]
Inflation Cools, But Debt Troubles Persist for Lower-Income Americans
Despite the Federal Reserve holding interest rates steady and inflation showing signs of cooling, debt-burdened Americans, particularly those with lower incomes, find no relief. Prices remain 3% higher than a year ago, and the Fed only projects one rate cut this year, down from an earlier expectation of three. As a result, many maxed-out credit […]
Unemployment Claims Reach 10-Month Peak as Economy Slows
U.S. weekly jobless claims rose to 242,000 for the week ending June 8, the highest level in 10 months, indicating a cooling labor market. This increase, surpassing economists’ forecasts of 225,000 claims, reflects the delayed impact of the Federal Reserve’s interest rate hikes. The unemployment rate also rose to 4% in May, while economic growth […]
Wholesale prices unexpectedly fell 0.2% in May
In May, the producer price index (PPI), which measures prices producers receive for goods and services, unexpectedly fell by 0.2% instead of rising by the anticipated 0.1%. This decline, driven by a significant 0.8% drop in final demand goods prices, suggests a pullback in inflation. Additionally, initial unemployment claims rose to 242,000, the highest since […]
Gold Dips as Fed Signals Only One Rate Cut for 2024
Gold prices declined slightly after the Federal Reserve indicated only one interest rate cut for 2024, disappointing investors who hoped for two cuts. Despite a cooler-than-expected inflation report limiting the drop, spot gold fell 0.2% to $2,317.38 per ounce, and U.S. gold futures declined 0.9% to $2,333.10. Analysts suggest that gold’s fundamental support remains strong, […]
Gold Prices to Stay Strong Through 2024, Some Say $3,000 is a Stretch
Gold’s surge to record highs is expected to continue throughout 2024, fueled by central bank purchases, particularly from China, along with geopolitical tensions and economic uncertainties. Despite the strong fundamentals supporting gold, analysts believe reaching $3,000 per ounce is unlikely. Currently, spot gold trades around $2,300 per ounce after hitting a record $2,449.89 on May […]
FOMC Holds Rates As Expected, Dot-Plot Shifts More Hawkish In 2024
FOMC Holds Rates As Expected, Dot-Plot Shifts More Hawkish In 2024 Since the last FOMC statement (on May 1st), stocks and bonds have outperformed (with the former at record highs), gold is flat while the dollar is down modestly. Amid all that, oil is down significantly… Source: Bloomberg These market moves have been prompted by […]