Defying Conventional Thinking: Gold Gains Against Rising Rates and a Robust Dollar
Published: Friday, 19 April 2024 04:22 | 
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Despite conventional expectations, gold prices have remained resilient in the face of rising interest rates and a strengthening U.S. dollar, traditionally negative factors for the metal. Typically, higher interest rates draw capital towards bonds due to their attractive yields, diminishing gold's appeal as an investment. Simultaneously, a strong dollar usually suppresses gold prices, as it increases the metal's cost in other currencies, encouraging selling. However, current market trends show that gold has diverged from these historical patterns, maintaining its value despite these adversarial conditions.
Federal Reserve Reveals Over 1,800 Banks Accessed Emergency Funds Post-SVB Collapse
Published: Friday, 19 April 2024 04:21 | |
| The Federal Reserve reported that 1,804 depository institutions, representing 20% of all eligible entities, accessed its emergency lending facility following the collapse of Silicon Valley Bank last March. According to the semi-annual Financial Stability Report, most of these institutions—95% in fact—were smaller entities with assets under $10 billion. The Bank Term Funding Program was established to counteract a liquidity crisis triggered by a sudden surge in withdrawals, which led to the failures of major banks like SVB and Signature Bank, necessitating a swift governmental intervention to stabilize the financial sector.
Gold Climbs for Fifth Week as Middle East Tensions Heighten Market Uncertainty
Published: Friday, 19 April 2024 04:07 | |
| Gold prices are on pace for a fifth consecutive weekly increase, driven by heightened tensions between Iran and Israel, which spurred safe-haven buying. As of Friday afternoon, spot gold rose 0.7% to $2,395.15 per ounce, with earlier peaks reaching $2,417.59. Over the week, prices climbed by 2.2%. Meanwhile, U.S. gold futures also saw a similar uptick, closing 0.7% higher at $2,413.8 per ounce. This trend reflects investors' concerns over escalating geopolitical risks and their impact on financial markets.
Costco Offers Gold, But Reselling Proves Challenging
Published: Friday, 19 April 2024 04:03 | |
| Buying a gold bar at Costco is as easy as adding it to your cart, but selling it involves more effort and can be less lucrative. Adam Xi, a 33-year-old from Philadelphia, experienced this firsthand. After purchasing a gold bar for $2,000, he struggled to resell it without a loss, contacting five different dealers before settling for a price just $20 below market value at $1,960. Many are discovering that gold is not as liquid an asset as they hoped, facing challenges when they decide to liquidate their investments.
Inside Job at Toronto Airport Leads to $16.5 Million Gold and Cash Heist
Published: Friday, 19 April 2024 03:52 | |
| In a significant heist at Toronto's airport, a thief stole $14.5 million in gold bars and nearly $2 million in cash using fake documents to claim a shipment. The scheme, which unfolded last April, was later uncovered as an inside job possibly involving Air Canada employees. The discovery led to a yearlong investigation linking the culprits to an international arms-trafficking operation, which was eventually disrupted by Pennsylvania State Police.