DataTrek: Silver Undervalued Relative to Gold, Cyclical Gains Expected
Published: Wednesday, 17 July 2024 02:19 | 
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According to DataTrek, silver appears undervalued compared to gold when examining the historical gold/silver price ratio. While gold has reached new all-time highs, silver remains below its 2011 peak. The current gold/silver ratio stands at 78:1, higher than the historical average. Despite silver's 27% year-to-date gain compared to gold's 19%, silver's significant industrial demand (57% of total demand) contrasts with gold's primary role as a store of value. Historically, the gold/silver ratio has spiked during economic uncertainties. DataTrek's Nicholas Colas suggests that silver's relative undervaluation could lead to further gains this year, although gold remains the preferred long-term investment.
Trump Warns Fed Against Pre-Election Rate Cuts, Hints at Conditional Support for Powell
Published: Wednesday, 17 July 2024 12:08 | |
| Former President Donald Trump has cautioned Federal Reserve Chair Jay Powell against cutting interest rates before the November 2024 presidential election, despite acknowledging the possibility of such a move. In an interview with Bloomberg News, Trump stated he would allow Powell to complete his term if re-elected, provided Powell was "doing the right thing." This statement addresses concerns in financial markets about potential politicization of the Fed under a second Trump presidency. Meanwhile, Powell has recently expressed increased confidence in inflation trending towards the Fed's 2% target, fueling expectations of a rate cut in September, just weeks before the election. Trump's comments highlight the delicate balance between monetary policy and political considerations in the run-up to the election.
Signs of Market Rotation: Small Caps Soar as Tech Leaders Lose Ground
Published: Wednesday, 17 July 2024 11:28 | |
| The stock market is showing signs of a shift away from the dominance of big technology stocks, particularly the "Magnificent 7." On Tuesday, while the S&P 500 and Nasdaq Composite made gains, the Russell 2000, which represents smaller-cap stocks, significantly outperformed with a 3.5% increase. Notably, four of the seven major tech stocks, including Alphabet, Microsoft, Nvidia, and Meta Platforms, experienced declines. This trend suggests a broadening of market performance beyond the tech giants that have led much of the recent market rally, potentially indicating a more diverse and balanced market environment.
Gold Rally Continues nearing $2,500 with Traders Betting on Fed Rate Reductions
Published: Wednesday, 17 July 2024 07:58 | |
| Gold reached a record high, nearing $2,500 per ounce, as traders anticipated Federal Reserve rate cuts due to cooling inflation. This surge, driven by large central bank purchases, strong consumer demand in China, and geopolitical tensions, saw gold prices rally 1.9% on Tuesday. Although Chris Weston from Pepperstone Group suggests gold might test $2,500 soon, some indicators hint at an overbought market. Additionally, political uncertainty, including a recent assassination attempt on Donald Trump, is impacting market sentiment, potentially reinforcing gold’s safe-haven appeal amid escalating trade tensions.
"Gold Price at $3000 by 2025: Don't Rule It Out" Alan Hibbard on Analyst Targets
Published: Tuesday, 16 July 2024 12:53 | |
| In this video, we explore the upwardly revised gold price targets from major banks like Goldman Sachs, JP Morgan, and UBS, and analyze...