World Gold Council: Examining the US Election's Effect on Gold
Published: Wednesday, 24 July 2024 12:05 | 
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The upcoming U.S. presidential election has significant global economic implications.. but what does it mean for gold?
The World Gold Council offers analysis based on long-term historical precedent in their latest report. In it, the WGC analysis suggests that gold bar and coin demand tends to increase during Democratic presidencies, party affiliation doesn't consistently impact gold prices during elections.
Instead, the economic policies of the elected president, both domestic and foreign, are more influential on financial assets, including gold. The current polarized political climate and global uncertainties underscore the importance of robust portfolio hedges, a role that gold effectively fulfills.
Financial Anxiety Surges: 4 in 10 Americans Worried About Paying Bills
Published: Wednesday, 24 July 2024 11:55 | |
| Nearly 40% of American adults are frequently worried about paying their bills, according to a new CNN poll.
Concerns about the rising cost of essentials like groceries, clothing, and insurance, are rising. At the same time, household debt reached $17.69 trillion in the first quarter of 2024, up by $184 billion from the previous quarter.
The level of financial anxiety surpasses that of the Great Recession era, reflecting the significant economic pressures many Americans are currently facing.
Financial Insecurity Looms for Gen X as Retirement Approaches
Published: Wednesday, 24 July 2024 11:42 | |
| A Prudential Financial study reveals that Generation X, currently aged 44-59, is facing significant financial challenges as they approach retirement. This generation, caught between the decline of pension plans and uncertainties about Social Security's future, is less financially secure than their predecessors.
Compared to older generations, a larger proportion of Gen Xers expect to need financial and housing support from their families in retirement, potentially becoming "silver squatters."
Despite these concerns, many have not yet discussed their potential need for support with their families, highlighting a critical need for financial planning and open communication about retirement expectations.
Economic Indicators Misfire: No Recession Despite Warning Signs
Published: Wednesday, 24 July 2024 11:27 | |
| Traditional recession indicators in the U.S. are proving unreliable in the current economic climate, largely due to the unique disruptions caused by the pandemic.
Despite signals such as declines in temporary employment and an inverted yield curve, which historically predicted recessions, no significant downturn has occurred. The pandemic has fundamentally altered labor market dynamics, with businesses less reliant on temporary workers.
Additionally, although GDP contracted for two consecutive quarters in 2022, the broader economy has remained resilient. This has led to skepticism about the current relevance of these recession indicators.
Economic Indicators and Political Shifts Propel Gold Above $2,425
Published: Wednesday, 24 July 2024 11:19 | |
| Gold prices increased on Wednesday due to a weakening dollar and anticipation of upcoming U.S. economic data that could influence the Federal Reserve's interest rate decisions.
Investors are closely watching GDP and personal consumption expenditure reports for clues on potential rate cuts, with markets currently expecting a rate cut in September. Additional factors supporting gold prices include lower U.S. stock prices, higher crude oil prices, and India's recent reduction of import duties on gold and silver.
Gold's appeal is further bolstered by expectations of earlier Fed rate cuts and ongoing political developments in the U.S.