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The gold rush is back on as physical buying for gold and expectations recession of more global central bank buying is driving metals. Some are also pointing to the assignation attempt on President Donald Trump as another factor driving gold. In times of global unrest and the possibility of political instability in the world’s largest economy getting those gold bugs out of and off the sofa. Also, unconfirmed reports that Chinese President Zi had a stroke.In fact, if you look at the weakness between silver and gold its light gives that argument some credence, but it could be as simple as the fact that the market is pricing in a 100 percent chance. As gold soared silver is lower on the day.
Still silver it’s cheap compared to gold, Yet FX Srported that Silver price (XAG/USD) retraces its recent gains, trading around $30.90 per troy ounce during the European hours on Wednesday. The grey metal faces challenges due to a slowing Chinese economy, the world’s largest manufacturing hub. China’s industrial demand for Silver is significant, as it is essential in various applications such as electronics, solar panels, and automotive components.China’s Gross Domestic Product (GDP) grew 4.7% year-over-year in the second quarter, compared to a 5.3% expansion in the first quarter and an expected 5.1%. This marks the slowest growth since the first quarter of 2023.
Copper futures on the other hand are a little bit weaker on concerns about Chinas economy the news out of China doesn’t seem to be getting any better economically but here in the US the fact that the housing start numbers came in much stronger than expected could find some support for the price of copper.
If look at the US housing starts that came in at 1.353 million units and that was more than the 1.3 million units that was anticipated,
Building permits also bounced back to 1.446 million units that was higher than the 1.4 million that was expected the housing start change month over month was much stronger than expected, rising by 3% versus a 1.8% expected, that corrected last month’s sharp drop of 5.5% US building permits rose to 3.4% that was more than the 0.1 percent expected in much more than the decline of 2.8% last month.
The Feds Thomas I. Barkin though is taking away a little bit of the excitement in the precious after saying that there is between that tight US labor market and the availability of Labor and the desire of firms to shift supply chains.
But then the Fed’s Christopher J. Waller said, “The time to cut policy rate is getting closer based on analysis of potential scenarios.”
Palatium is one of the laggards in the industrial metal space, but it looks like it could be bottoming today. Down over 15% on the year partly because the concerns that the Biden electric car push is going to fail, Still expect a expect a rebound here after some key support areas.There is money being made in Aluminum Business.Kaiser Aluminum Co. declared a quarterly dividend on Monday, Kaiser Aluminum has raised its dividend by an average of 4.8% per year over the last three years. Kaiser Aluminum has a dividend payout ratio of 53.3% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Kaiser Aluminum to earn $7.53 per share next year, which means the company should continue to be able to cover its $3.08 annual dividend with an expected future payout ratio of 40.9%. Kaiser Aluminum Trading Up 4.2 %’.More By This Author:Dr. Copper Called In Sick – Manic Metals ReportResilience. Manic Metals ReportThe Energy Report: Time After Time After Time