INFLATION CLIMBS TO HIGHEST POINT IN 40 YEARS

JAN. 12, 2022

SOURCE: PIXABAY

The Labor Department released its December report on Wednesday. The report showed that the consumer price index (CPI), which measures housing, fuel, goods, and service costs, rose to 7%. That is the fastest rate calculated since June 1982. Core prices, which exclude energy and food, came in at 5.5% – displaying the steepest 12-month increase in 31 years.

SOURCE: PIXABAY

Economists and investors continue to worry about the state of the economy. With rising inflation threatening economic growth, the Fed is feeling intense pressure to curb inflationary pressures by increasing interest rates. This is a tricky feat because analysts believe an increase in interest rates (and imposing other monetary measures) will negatively affect the stock market.

Gold jumped 0.05% to $1831.00 per ounce. Silver grew 0.86% to $23.12 per ounce. Platinum rose 1.24% to $1000.50 per ounce, while Palladium increased 0.91% to $1973.50 per ounce. Bitcoin edged up 0.71% to $43,751.10.

PRECIOUS METALS REBOUND AHEAD OF THURSDAY’S INFLATION DATA RELEASE 

JAN. 11, 2022

SOURCE: PIXABAY

Gold and silver gained against the dollar overnight, as investors continue to seek out precious metals to combat higher inflation rates. While the dollar struggles as the dominant store of wealth, central banks are dumping dollars for gold-which they view as more secure in the long term. 

SOURCE: PIXABAY

Investors are awaiting December’s inflation report to be released Thursday, as many expect the inflation rate to be at or above 7%. If this ends up being the case, market insiders believe the Fed will take more aggressive steps in monetary policy to control the inflation rate. 

Gold jumped 0.12% to $1810.60 per ounce. Silver grew 0.02% to $22.58 per ounce. Platinum rose 0.21% to $956.80 per ounce, while Palladium decreased 0.59% to $1934.50 per ounce. Bitcoin dipped 0.71% to $41,526.10.

BLOOMBERG PROJECTS THAT CONSUMER PRICE INDEX HAS REACHED 7% FOR THE MONTH OF DECEMBER

JAN. 10, 2022

SOURCE: PIXABAY

Economists are preparing for December’s Consumer Price Index (CPI) report, due Thursday. Bloomberg predicts that CPI will have reached 7%, leading speculators to believe that the Fed might have to take stronger measures to curb inflation rates. Financial analysts believe that a tighter money supply is needed to control inflation, but doing so will negatively affect the stock market. December US retail sales numbers are expected to show poor results due to Omicron and supply chain issues.

SOURCE: PIXABAY

Gold sank 0.15% to $1801.00 per ounce. Silver fell 0.20% to $22.44 per ounce. Platinum dropped 3.75% to $939.00 per ounce, while Palladium decreased 1.01% to $1948.50 per ounce. Bitcoin dove 2.57% to $40,799.70.

GOLD GAINS AS DECEMBER NON-FARM PAYROLL MISSES EXPECTATIONS

JAN. 7, 2022

SOURCE: PIXABAY

For the second consecutive month, the Bureau of Labor Statistics (BLS) US payroll data presented disappointing figures. US employers added just 199,000 jobs, far lower than the estimated 422,000. Also, the labor force participation rate remained at 61.9% which is lower than pre-pandemic levels. However, the unemployment rate dropped to 3.9%, better than the expected 4.1% rate. The unemployment rate currently falls within the criteria the Fed was looking for as an indicator to raise interest rates in March.

SOURCE: PIXABAY

Wage inflation remains strong, as employers increase pay to attract more employees. Employers in various sectors continue to struggle to fill vacancies as many workers resign, in what is being referred to as “the Great Resignation.” Economists worry that the lack in the country’s productivity will hinder GDP growth and exacerbate supply chain bottlenecks. 

Gold rose 0.01% to $1798.00 per ounce. Silver fell 0.03% to $22.26 per ounce. Platinum dropped 1.04% to $972.40 per ounce, while Palladium increased 1.54% to $1937.50 per ounce. Bitcoin dove 2.74% to $41,904.80

GOLD AND SILVER INDUCES SELL-OFF AS MARKET REACTS TO THE FED’S PROPOSED REDUCTION OF BALANCE SHEET

JAN. 6, 2022

SOURCE: PIXABAY

The minutes from the Fed’s last meeting were currently released, signaling to Wall Street that the central bank will begin to reduce its balance sheet. This came as a surprise to many investors, inducing an instant sell-off of stocks, precious metals, and cryptocurrency in a matter of minutes. Some members of the Federal Reserve Committee believe that focusing more on asset reduction to the balance sheet will help steepen the curve of inflation. 

SOURCE: PIXABAY

With the proposed asset sell-off, interest rate hikes, and tapering of bonds, the Fed’s new monetary policy demonstrates that the central bank is deeply concerned about controlling inflation. Precious metal speculators believe that the Fed’s new approach will help slow down the increase of inflation but will not keep it within healthy levels. While some speculators have traded gold for dollars, central banks around the world continue to dump dollars for gold as a means to protect against an economic global collapse. 

Gold dipped 1.17% to $1795.90 per ounce. Silver fell 3.14% to $22.20 per ounce. Platinum dropped 3.16% to $969.60 per ounce, while Palladium decreased 1.22% to $1881.50 per ounce. Bitcoin dove 0.71% to $43,084.30.

JOB GROWTH EXCEEDS EXPECTATIONS- BUT IS THAT NUMBER AFFECTED BY THE 4.5 MILLION PEOPLE THAT QUIT THEIR JOBS IN NOVEMBER?

JAN. 5, 2022

SOURCE: PIXABAY

Private companies added new hires at a higher rate than expected, according to a report by payroll processing firm ADP. The total number of private sector growth hit 807,000 for the month of December, which was broad-based among all sectors. The ADP report only shows data for the first two weeks of December, before the omicron variant impacted the economy. Analysts worry that the omicron variant might affect the progress of job growth for the month of December.

SOURCE: PIXABAY

Another significant issue causing analysts to worry is the record number of people who quit their jobs in November. About 4.5 million people left their jobs in what is now being called “The Great Resignation”. The majority of workers that quit were employed in the restaurant and health care sectors, two areas already suffering heavily due to the pandemic. Economists are worried that both these sectors will struggle even more now that omicron has put an increased amount of employees out of work.

Gold increased 0.49% to $1830.90 per ounce. Silver grew 0.28% to $23.24 per ounce. Platinum jumped 2.47% to $1,011.70 per ounce, while Palladium rose 1.05% to $1941.00 per ounce. Bitcoin leaped 1.81% to $46,644.80.

CHINA DOUBLES DOWN ON ITS DIGITAL YUAN, LAUNCHES NEW APP TO EXPAND USAGE

JAN. 4, 2022

SOURCE: PIXABAY

The People’s Bank of China recently launched e-CNY, the digital form of the country’s official currency, the yuan. The central bank created a lottery in select cities which allocated users a small amount of currency. This trial was conducted to help facilitate the adoption of the country’s new digital currency. Recently, the central bank expanded the use of the digital yuan to more people by launching a new wallet app. The app will allow more people access to the digital yuan in certain cities throughout China.

SOURCE: PIXABAY

The digital yuan isn’t a digital currency like bitcoin, which is a decentralized digital currency that operates on the blockchain. Instead, it functions exactly like the paper currency of the yuan but in digital form. China will analyze the digital yuan’s usage in the Beijing Winter Olympics.

Gold increased 0.37% to $1815.80 per ounce. Silver grew 0.44% to $23.08 per ounce. Platinum jumped 2.2% to $994.30 per ounce, while Palladium rose 3.8% to $1924.00 per ounce. Bitcoin leaped 1.43% to $4,019.80.

DOLLAR GAINS STRENGTH FOR THE NEW YEAR WHILE GOLD TAKES SIGNIFICANT HIT

JAN. 3, 2022

SOURCE: PIXABAY

The US dollar index recently climbed overnight 0.12% to 95.79, holding strong against the Euro and Yen. The US Dollar typically starts the new year off in the green. It’s risen 19 times during the first week of the year in the past 25 years. With the spike in omicron variant cases, investors will continue to analyze its effects on the economy. Currently, many investors continue to view inflation as a major risk and prefer to hold gold instead of fiat currency.

Some investors have sold significant amounts of gold for long-term bonds as yields start to rise. The 10-year Treasury note yield grew 7.6 points to 1.574%. The 30-year Treasury bond yields increased 6.5 points at 1.954%. Some market speculators believe that yields will continue to grow in the bond market.

SOURCE: PIXABAY

Gold dropped 1.5% to $1808.50 per ounce. Silver dipped 2.4% to $22.87 per ounce. Platinum fell 2.39% to $957.40 per ounce, while Palladium rose 0.6% to $1926.50 per ounce. Bitcoin fell 1.3% to $46,809.70.