Commodities
Mark Yaxley: gold price all over the world manipulation is part of the banks’ job
Stansberry Research recently spoke with Mark Yaxley about the decline in precious metal prices and gold prices around the world. Why does the value of gold go down when the dollar appreciates?
The managing director of the precious metals company Strategic Wealth Preservation believes that the Fed’s aggressive policy of raising interest rates is causing the value of the dollar to rise.
Is gold the same price around the world?
Because prices in the precious metals market are denominated in dollars, the price of gold falls while the dollar rises in value, the expert said:
“The stronger the U.S. dollar, the fewer U.S. dollars it takes to buy one ounce of gold[…] That’s really the main factor, and that’s what investors should be paying attention to.”
Yaxley doesn’t think investors should panic over falling all world gold price lists and assures that the precious metal will eventually recover. He went on to say the following:
“It’s not the end of the world. The gold situation is not like a bitcoin crash. We haven’t lost half of our investment. It’s a healthy correction, and these things happen sometimes.”
He urges investors to buy gold now, while it’s still cheap, to profit when the trend reverses up, “Gold and silver always serve their purpose in the end, but you have to give it time. That’s why patience is required.”
As for gold prices all over the world manipulation in the precious metals market, he said that manipulating “paper” gold is “unfortunately part of the banking culture.” He said it will be difficult to replace banking titans like JPMorgan, which has recently been accused of manipulating gold and silver prices.
Fed policy
Kitco News interviewed Frank Holmes, during which they discussed the climate agenda and the Fed’s monetary policy after President Joe Biden announced last Wednesday new programs to combat climate change, including $2.3 billion to help people upgrade buildings and expand flood protection.
But the “emotional” response to climate change has weakened economic growth and caused inflation, U.S. Global Investors CEO and executive coordinator of HIVE Blockchain explained in an interview. “Climate change is essentially perpetuating inflation,” Holmes said.
“Much of it has to do with energy inflation in Europe, the panic closures of nuclear power in Spain and Germany, and taxing cars and trucks.”
Holmes expects the U.S. Federal Reserve to reverse course on tightening monetary policy and cut interest rates by the end of November this year. There have already been protests around the world over rising prices and concerns about the cost of living. According to the expert, the civil unrest could prompt the Fed to cut rates:
“All that’s going to happen is a big protest, and not just in Europe. […] It’s a trend that’s happening in countries all over the world.”
He said he expects the U.S. Federal Reserve to hit the “panic button” and ease monetary policy “by Thanksgiving.” Holmes tracks the Manufacturers’ Manufacturing Index (PMI), which he said is a leading indicator of the overall health of the economy. “The PMI is declining all over the world,” he explained. “If the world economy suddenly starts contracting, the ‘panic buttons’ will go off and more money will be printed.”
By Enes Tunagur
(Reuters) -Oil prices fell on Friday as analysts continued to forecast a supply surplus in 2025 despite the OPEC+ decision to postpone planned supply increases and extend deep output cuts to the end of 2026.
futures were down 66 cents, or 0.9%, to $71.43 per barrel at 1128 GMT. U.S. West Texas Intermediate crude futures were down 65 cents, or 1%, to $67.65 per barrel.
For the week, Brent was on track to fall 2%, while WTI was on course for a 0.5% drop.
The Organization of the Petroleum Exporting Countries and its allies on Thursday pushed back the start of oil output rises by three months until April and extended the full unwinding of cuts by a year until the end of 2026.
The group, known as OPEC+ and responsible for about half of the world’s oil output, was planning to start unwinding cuts from October 2024, but a slowdown in global demand – especially in China – and rising output elsewhere have forced it to postpone the plan several times.
“The outcome of the latest meeting of OPEC+ members surprised us positively … The extension of the production cuts shows the group remains united and is still targeting to keep the oil market in balance,” UBS analyst Giovanni Staunovo said.
Pressuring prices on Friday, analysts reiterated expectations of a supply surplus next year, although some of them now view a smaller surplus than before.
Bank of America forecasts increasing oil surpluses to drive Brent to average $65 a barrel in 2025, while expecting oil demand growth to rebound to 1 million barrels per day (bpd) next year, the bank said in a note on Friday.
HSBC, meanwhile, now expects a smaller oil market surplus of 0.2 million bpd, from 0.5 million bpd previously, it said in a note.
Brent has largely stayed in a tight range of $70-75 per barrel in the past month, as investors weighed weak demand signals in China and heightened geopolitical risk in the Middle East.
“The general narrative is that the market is stuck in its rather narrow range. While immediate developments might push it out of this range on the upside briefly, the medium-term view remains rather pessimistic,” PVM analyst Tamas Varga said.
By Paul Carsten
LONDON (Reuters) -Oil prices pared some gains on Thursday after a source told Reuters OPEC+ has agreed to delay a planned oil output hike until April 2025.
was up 24 cents, or 0.3%, to $72.55 a barrel at 1237 GMT. It had been at $72.84 before Reuters reported the delay.
U.S. West Texas Intermediate (WTI) rose 25 cents, 0.4%, and was trading at $68.79 a barrel.
The planned delay comes as OPEC+, made up the Organization of the Petroleum Exporting Countries plus allies including Russia, tries to support prices as it wrestles with weak demand, notably from China, and rising supply outside the producer group.
“It will not make next year’s oil balance tight and supply surplus is still anticipated,” said Tamas Varga of oil broker PVM. “This view was mirrored in the gut price reaction.”
There remains the question of how long the delays could last, with this only the latest in a series. OPEC+ was originally due to begin raising output in October as part of a plan to gradually unwind the group’s most recent layer of output curbs of 2.2 million barrels per day.
“They reiterate that these barrels will indeed come back,” said Bjarne Schieldrop, chief commodities analyst at SEB. “It’s a limited time frame. This means there is no upside to the oil price in the next couple of years.”
Elsewhere, a larger-than-expected draw in stockpiles last week also provided some support to prices.
In the Middle East, Israel said on Tuesday it would return to war with Hezbollah if their truce collapses and its attacks would go deeper into Lebanon and target the state itself.
Meanwhile, Donald Trump’s Middle East envoy has travelled to Qatar and Israel to kick-start the U.S. President-elect’s diplomatic push to help reach a Gaza ceasefire and hostage release deal before he takes office on Jan. 20, a source briefed on the talks told Reuters.
On Thursday, OPEC+ is expected to postpone its planned increase in oil production, which was initially scheduled to commence in January, Reuters reported.
The decision to maintain current output levels aims to provide additional support for the oil market. The group, responsible for about half of the world’s oil supply, had intended to start easing output restrictions through 2025 but is now reconsidering in light of a global demand slowdown and increased production from non-member countries.
The consortium’s plan to unwind output cuts has faced challenges due to these market conditions, which have also exerted downward pressure on oil prices.
Accordingly, an extension of the current output cuts for an additional three months is the most probable outcome of the online meeting. However, there are indications that an even longer extension could be under consideration.
The deliberations within OPEC+ reflect the group’s ongoing efforts to balance oil supply with fluctuating global demand. The decision to delay the increase in output is seen as a measure to stabilize the market, which has been affected by various economic factors.
Market participants are closely monitoring the developments from OPEC+’s meeting, as the group’s decisions have significant implications for global oil supply and pricing. The final outcome of the meeting, including the length of the extension, will be determined by the consensus of the member countries.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Forex2 years agoForex Today: the dollar is gaining strength amid gloomy sentiment at the start of the Fed’s week
- Forex2 years ago
How is the Australian dollar doing today?
- Forex2 years ago
Unbiased review of Pocket Option broker
- Forex2 years ago
Dollar to pound sterling exchange rate today: Pound plummeted to its lowest since 1985
- Cryptocurrency2 years ago
What happened in the crypto market – current events today
- World2 years ago
Why are modern video games an art form?
- Commodities2 years ago
Copper continues to fall in price on expectations of lower demand in China
- Forex2 years ago
The dollar is down again against major world currencies
