Economic Slowdown and Rising Inflation Cast Doubt on Soft-Landing Prospects
Published: Thursday, 25 April 2024 11:53 | 
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The U.S. economy experienced its slowest growth in nearly two years last quarter, accompanied by a notable increase in inflation, which dampened hopes for a soft landing. The Bureau of Economic Analysis reported that the Gross Domestic Product (GDP) grew at an annualized rate of 1.6%, falling below all economists' forecasts. The primary driver of economic growth, personal spending, increased at a modest 2.5% rate, which was less than expected. Additionally, a widening trade deficit contributed to the slowdown, marking the largest subtraction from growth since 2022. Inflation also showed signs of acceleration, with a key indicator rising at a 3.7% annualized rate. This was the first quarterly increase in a year, indicating that price pressures are resurfacing.
Real Estate: Shocking Data
Published: Thursday, 25 April 2024 11:44 | |
| Discover the latest trends in residential and commercial real estate that could reshape the entire banking sector!
Chinese Retail Investors Drive Gold Boom on Shanghai Futures Exchange
Published: Thursday, 25 April 2024 10:53 | |
| Gold's remarkable rise this year had analysts scratching their heads until a new force was identified: Chinese retail investors swarming the Shanghai Futures Exchange (SHFE). Despite headwinds like increasing Treasury yields and a robust dollar, trading volumes on the SHFE tripled, propelling gold prices upward. China's long-standing connection to gold, coupled with recent market uncertainty, has contributed to this surge, indicating a major shift in gold trading patterns. However, as gold prices fluctuate, questions persist about the SHFE's broader impact on the global gold market.
Decline in Gold Prices Leads to Weakening of Zimbabwe's ZiG Currency
Published: Thursday, 25 April 2024 09:27 | |
| Zimbabwe's new gold-backed currency, the ZiG, experienced its first decline since its introduction this April, slipping nearly 1% to trade at 13.38 against the dollar on Thursday. This weakening aligns with recent drops in gold prices, which have seen a downturn over the past three days. The ZiG, an acronym for Zimbabwe Gold, is supported by a mix of precious metals, including approximately 2.5 tons of gold, and $100 million in foreign currency reserves maintained by the central bank. The currency debuted at 13.56 per dollar, replacing the significantly devalued Zimbabwean dollar, which had plummeted about 80% against the US dollar since the beginning of the year. During a business conference in Bulawayo, Zimbabwe’s Vice President Constantino Chiwenga emphasized the ZiG's role in transitioning away from the US dollar, which is used in roughly 80% of transactions. The government plans to phase out the US dollar as legal tender by 2030.
Gold and Bitcoin Surge: Signals Time for a New Gold Standard?
Published: Thursday, 25 April 2024 09:22 | |
| In a month marked by remarkable surges in both Bitcoin and gold prices, speculation is growing about the sustainability of high interest rates in heavily indebted Western economies. These assets, usually favored by distinctly different investor groups, have seen simultaneous rallies, driven by soaring inflation and market volatility. Kathleen Brooks, Research Director at XTB, points out the significance of these parallel trends: "When gold and Bitcoin rise together, it prompts a deeper analysis of investor behavior. Both are capitalizing on the current market sentiment, as evidenced by record highs in major U.S., Japanese, and European stock indices." This alignment raises questions about the broader economic implications, including the feasibility of returning to a gold standard in a world moving away from dollar dominance.