GOLDEN TIMES
GOLD SILVER MART CORP.
Issue #20 November 17, 2023
FINANCIAL UPDATES
- US inflation rate rose 3.2%, down from 3.7% in September
- US Core inflation rose 4%, the slowest pace since September 2021
- Microsoft debuted its first AI chips in a potential effort to compete with Nvidia’s dominance
- Rolex and Patek Philippe prices fell to two-year lows amid waning demand for expensive watches
- Exxon aims to become a major lithium producer for EV batteries
- Amazon to start selling cars on its website next year
GOLD NEWS
Gold posted a solid performance, surging beyond $1,980 per ounce on Friday and poised to secure a gain of over 2% for the week. This uptrend was supported by indications of subdued inflation and signs pointing to a deceleration in the US economic momentum. These factors have strengthened the market’s belief that the Federal Reserve is concluding its cycle of interest rate hikes. The focus has now shifted to when the Fed might initiate rate cuts. Recent data revealed a more significant-than-anticipated slowdown in US consumer inflation for October, coupled with the first decline in retail sales in seven months. Additionally, the number of Americans filing for unemployment benefits reached a three-month high last week, adding to the factors influencing the gold market. Investors looking to capitalize on this trend might consider investing in gold bullion bars to secure their financial position.”
Oil faced its fourth consecutive weekly decline, influenced by concerns over diminished demand and a slight reprieve in supply. The most recent data from the EIA revealed a substantial increase of 17.5 million barrels in crude oil stocks in the US over the past two weeks, marking the highest inventory levels in 2.5 months. Moreover, a surge in output from non-core OPEC members offered some respite to global supply levels, mitigating the impact of ongoing production cuts from major players like Saudi Arabia and Russia.
NOTABLE HEADLINES
The House passed a funding bill to avert a government shutdown, now awaiting Senate approval.
Google CEO Sundar Pichai took the stand in an antitrust trial.
US Supreme Court finally gets an official ethics code for its justices.
Nepal banned TikTok, saying the app disrupted the country’s social harmony.
The Canadian Federal Court overturned Ottawa’s “unreasonable and unconstitutional” single-use plastic ban.
House to vote on whether to expel Rep. George Santos over crimes including wire
fraud, aggravated identity theft, and unethical behavior.
TOP CHARTS
US Wholesale prices had their biggest MoM drop in over two years
Home Depot is up 5% this week thanks to better-than-expected sales driven by home improvements
Euro bonds fall through 200 day, as inflation worries soften
THIS WEEK
the October Consumer Price Index (CPI) report revealed a year-on-year increase of 3.2%. This fell slightly below the forecast of 3.3% and showed moderation from September’s 3.7%. The core CPI rate for October was up 4.0%, compared to the consensus forecast of 4.1%. This data aligns with the perspective of U.S. monetary policy doves, advocating for a pause in the Federal Reserve’s interest rate hikes. The response was a solid downtick in U.S. Treasury yields and a sharp selloff in the U.S. dollar.
U.S. retail sales experienced a modest decline of 0.1% last month, marking the first decrease in seven months, as per new government data. However, this dip was less than anticipated, with a significant portion attributed to reduced spending on gas. When excluding auto and gasoline spending, sales actually increased by 0.1% from the previous month. This suggests that while there might be a pullback in significant purchases, people are still engaged in shopping activities as the holiday quarter kicks off.
These developments led to a sense of victory on Wall Street in the battle against inflation, sparking a surge in stocks as optimism grew around the potential halt to the Fed’s tightening cycle.
APEC Summit in San Francisco
President Biden and Chinese leader Xi Jinping concluded a four-hour meeting at the APEC summit in San Francisco on Wednesday, reaching agreements on restarting military-to-military communications and taking steps to curb fentanyl production. This meeting, the first between the two leaders in a year, holds the potential to usher in a more stable period in U.S.-China relations after years of escalating tensions. Biden described the discussions as some of the most constructive and productive, emphasizing the importance of resuming military ties to prevent accidents and miscalculations. Xi highlighted the need for major countries to cooperate, addressing issues like climate change and artificial intelligence, while urging Biden to avoid supporting “Taiwan independence” and to halt weapons sales to Taiwan. The leaders also discussed global conflicts, including the war in Gaza, Russia’s actions in Ukraine, and China’s exit bans on U.S. citizens. This meeting follows months of intense diplomacy, indicating a diplomatic effort to navigate complex issues and improve bilateral relations.
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