VanEck CEO Bullish on Bitcoin and Gold Amid Global Economic Shifts

VanEck CEO Jan van Eck expresses strong bullish sentiment towards both Bitcoin and gold, citing various market dynamics and global economic factors. Despite short-term pressures on Bitcoin, including government selling and liquidations, he maintains a positive long-term outlook, noting continued retail investor interest in spot Bitcoin ETFs. For gold, van Eck points to record highs driven by geopolitical tensions and increased central bank purchases. He highlights the declining appeal of traditional safe-haven currencies, making both gold and Bitcoin attractive alternatives. Looking ahead, van Eck anticipates potential fiscal challenges in 2025, particularly regarding U.S. Social Security, and expects continued Federal Reserve easing policies to support both assets.

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Fed's Daly: Cooling Inflation May Warrant One or Two Rate Cuts in 2024

San Francisco Federal Reserve Bank President Mary Daly has indicated that recent cooler inflation readings are encouraging, and she anticipates further easing in both price pressures and the labor market to justify interest rate cuts. While Daly sees it as likely that policy adjustments will be warranted, she remains uncertain about the exact timing. She suggests that one or two interest rate cuts this year, as projected in the June Fed policymaker forecasts, could be appropriate if inflation continues to cool, though progress may be uneven. Daly's comments reflect a cautious optimism about the economic outlook and a willingness to consider rate cuts in response to improving economic conditions.

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Gold Nears Record High as Inflation Report Boosts Rate Cut Odds

The June 2024 inflation report, showing a decrease to 3% year-over-year, has significantly increased market expectations for Federal Reserve interest rate cuts. This data has led to a surge in rate cut bets, with the probability of a September cut rising to 91%. As a result, investors are flocking to interest-rate-sensitive assets, including Treasury bonds, low-yield currencies like the Japanese yen, and gold. The market reaction includes falling Treasury yields, a weakening U.S. dollar, and gold prices approaching all-time highs. This shift in sentiment suggests that investors are increasingly confident that the Fed's inflation target is within reach, potentially leading to multiple rate cuts by the end of the year.

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Silver Soars 2% on 'Double Bottom' Breakout, Eyes YTD Highs

Silver prices have surged over 2%, breaking through key resistance levels and confirming a 'double bottom' chart pattern. This bullish momentum, fueled by weaker-than-expected US inflation data, has pushed the XAG/USD to $31.40, a six-week high. The breakout above the $30.73 neckline has opened the door for further gains, with potential targets at $31.75, $32.00, and the year-to-date high of $32.51. The Relative Strength Index (RSI) supports this upward trend. However, key support levels at $31.00, $30.73, and $29.82/79 remain crucial for potential pullbacks. This price action has reignited discussions about potential Federal Reserve monetary policy easing.

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Fed Chair Powell: Labor Market 'Fully Back in Balance'

Federal Reserve Chair Jerome Powell has declared that the U.S. labor market has achieved balance, marking a significant shift from the past three years when a tight job market was cited as a reason for maintaining high interest rates. This change in stance suggests that the Fed no longer views the labor market as a primary source of inflationary pressure. The cooling job market, evidenced by more concentrated hiring in specific sectors like healthcare and government, may now support the case for potential interest rate cuts in the near future. This development indicates that the Fed is reassessing its policy approach, considering both inflation risks and the potential negative impacts of prolonged high rates on the economy.

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