Metals News
Republic Bank Shuts Down; FDIC Coordinates $10 Billion Asset Transfer to Fulton Bank
US regulators have closed Republic Bank, marking 2024's first bank failure. The FDIC is safeguarding $10 billion, comprising $6 billion in assets and $4 billion in customer deposits, transferring them to Fulton Bank. Republic Bank’s 32 branches across New Jersey, Pennsylvania, and New York will resume operations under Fulton Bank this weekend or Monday, depending on regular branch hours. Customers can access funds through checks, ATMs, or debit cards. This transition follows significant bank failures in the previous year and comes amid ongoing concerns about the banking sector's stability due to its connections with the volatile commercial real estate market and US Treasuries.
SOFR Options Hint at Cautious Fed Rate Increases in 2024
The US rate options market, sensitive to inflation trends, is cautiously pricing in potential Federal Reserve interest rate hikes for this year and next. Options on Secured Overnight Financing Rate (SOFR) futures, a key indicator used by bond investors to predict Fed policy, suggest a modest likelihood of rate increases. Despite current SOFR rates at 5.31%, market consensus is mixed, with some anticipating a possible single rate cut rather than multiple hikes, reflecting a strategy of maintaining higher rates longer amidst persistent inflation and a strong labor market.
Record Gold Prices Fuel Modern-Day Gold Rush
The surging price of gold, recently hitting a record high of $2,400 per ounce, has sparked a modern gold rush. People are discovering valuable assets in their homes, from old jewelry to gold coins, with just four one-ounce coins now valued at nearly $10,000. At places like Main Street Coin, numismatist Clay Wallen finds himself busier than ever, as customers like Chris Reynolds and Jim Payne cash in items such as old gold bracelets, reaping benefits like $200 for just a few pieces.
Crude Falls as Israel-Hamas Ceasefire Talks Progress
Oil prices fell to below $83 a barrel as progress towards a ceasefire between Israel and Hamas lessened the geopolitical risk associated with crude oil. West Texas Intermediate crude dropped 1.6% after reports of Israel's willingness to negotiate a truce, potentially starting with the release of 33 hostages. The momentum for peace is supported by U.S. Secretary of State Antony Blinken's efforts to broker a ceasefire during his regional visit, with Israel pausing any further military actions in Rafah ahead of discussions with American officials.
Nearly One-Third of American Families 'One Crisis Away' from Poverty
Nearly 40 million U.S. families, or 29% of households, are categorized as ALICE (Asset Limited, Income Constrained, Employed), a term created by United Way to describe those earning above the poverty line but insufficient to meet basic needs. This statistic highlights the growing financial vulnerability amid sluggish wage growth and rising costs, with these families being just one emergency away from poverty. This is in addition to the 37.9 million Americans, or 11.5% of the population, already living below the poverty line according to the U.S. Census Bureau.