African Nations Turn to Precious Metal to Combat Inflation
Published: Wednesday, 24 July 2024 11:15 | 
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African nations are increasingly turning to gold as a means to protect their economies against currency losses and inflation, following the lead of countries like China and India.
Countries such as South Sudan, Zimbabwe, Nigeria, Uganda, and Tanzania are either implementing or considering policies to increase their gold reserves.
This trend is driven by geopolitical tensions, recent economic disruptions, and a desire to reduce dependency on the US dollar. While this strategy offers potential benefits in terms of diversification and stability, experts note that it's not a complete substitute for US dollar reserves but rather a complementary approach to managing economic risks.
New Report Outlines Potential Paths to Sustainable US Debt
Published: Wednesday, 24 July 2024 10:46 | |
| The Peter G. Peterson Foundation asked seven think tanks to come up with plans to address the national debt.
All participating think tanks agree on the need to rein in borrowing and propose a combination of revenue increases and spending cuts to reduce the debt-to-GDP ratio by at least one-third by 2054.
The report identifies Social Security, healthcare costs, and the 2017 tax cuts as key areas for potential bipartisan reform, suggesting that political will, rather than lack of solutions, is the main obstacle to addressing the debt crisis.
Slow and Steady: US Economy Navigates Controlled Deceleration
Published: Wednesday, 24 July 2024 10:38 | |
| The U.S. economy is experiencing a controlled slowdown, with reduced hiring, consumer spending, and manufacturing activity, alongside a stagnant housing market.
Despite these challenges, the economy appears to be achieving a "soft landing," with inflation cooling without significant unemployment increases and continued, albeit slower, economic growth.
This controlled deceleration is viewed positively, with economists now seeing a lower risk of recession compared to a year ago. The upcoming economic figures are expected to show the slowest consecutive quarters of growth since 2022, reflecting this managed economic cooling.
Gold Breaks Election Year Norms Amid Heightened Global Tensions
Published: Wednesday, 24 July 2024 10:35 | |
| Gold prices have reached record highs in 2024, defying typical behavior during U.S. presidential election years.
According to the World Gold Council, while elections historically have not directly impacted gold performance, the current political climate of increased polarization and elevated geopolitical risks may be encouraging investors to seek gold as a hedge against portfolio risk.
This unique environment has contributed to gold's strong performance, with prices up 16% year-to-date and reaching an all-time intraday high of $2,488.40 on July 17.
Invesco Strategist Predicts Multiple Reductions in 2024
Published: Wednesday, 24 July 2024 10:30 | |
| Kristina Hooper, Invesco's chief global market strategist, believes multiple rate cuts could be possible in 2024.
Despite disappointing existing home sales data, Hooper remains optimistic about potential rate cuts in 2024, suggesting the possibility of two or even three cuts.
Hooper attributes the current tech sector rotation to anticipation of these rate cuts, which could prevent an economic downturn and lead to re-acceleration, benefiting cyclically sensitive stocks.