Gold prices are at $2,410 an ounce this Monday morning, increasing from $2,405 an ounce last Monday.
On Wednesday last week, Fed Chairman Jerome Powell announced that interest rates would remain unchanged. Powell also said a September interest-rate cut would be "on the table" if inflation eases again.
In a surprising turn of events, the Bank of Japan (BoJ) raised its interest rate last Friday, catapulting the Yen to its highest value against the U.S. Dollar in eight months. This significant shift, the first upward movement of the bank rate to .25 percent in 17 years for BoJ, could potentially reshape global market dynamics.
Dollar falls to 5-month low.
Friday brought a jolt to the market with a negative labor market statistic, further fueling fears of the United States' recession. This data, indicating a closer proximity to recession than Jerome Powell may have realized on Wednesday, underscores the gravity of the current economic situation.
The U.S. labor market slowed, with nonfarm payrolls increasing by only 114,000 in July, compared to 179,000 in June, and well below the anticipated 185,000. The unemployment rate rose to 4.3%, the highest since October 2021. This disappointing jobs report heightened fears of a recession, leading to a sell-off in the stock market.
For a few hours on Friday afternoon, the Gold price per ounce spiked to a new record of $2,522,50. Many analysts speculate a liquidity crisis as the stock markets react today with a 3rd consecutive down day on some exchanges.
- Bitcoin is down 15.5%
- NASDAQ is down 10%
- Gold is still holding above $2,400 an ounce this morning.
Potential market-moving events for this week include:
- U.S. SoS Blinken Warns Iran & Hamas Retaliation Against Israel Imminent
- Consumer Credit Report
- Initial Jobless Claim
Given the current volatility in the stock market, many investors are turning to precious metals like gold and silver as a hedge against economic downturns and inflation. Precious metals have historically held their value during stock market crashes. When equities suffer, gold and silver often see increased demand as investors seek stable and tangible assets.
We would also like to extend a special invitation to you to join our next live webinar at the U.S. Gold Bureau. This is a great opportunity to delve deeper into topics relevant to the industry and be part of the ongoing discussion. In this month's webinar, we will be discussing why tangible assets matter, a perfect topic of discussion given today's economic circumstances. Register here!
Posting in:
byUnited States Gold Bureau