August 26, 2024
United States:
Gold Bulls Delight In Jackson Hole as Powell Juices Price Rally
Gold’s record-setting rally above $2,500 an ounce looks to have further to run as the Federal Reserve prepares to chop rates, traditional drivers such as lower yields return, and Western investors pile back in.
“Everybody thought the Fed was going to be the last to cut, but now they’re getting in line,” said Jay Hatfield, chief executive officer of Infrastructure Capital Advisors, who recently went long on gold options for the first time in years. Chair Jerome Powell’s Jackson Hole speech — which promised rate cuts — was a watershed moment for bullion, according to Hatfield.
Europe:
Muted German Business Confidence Points to Sluggish Economy
Germany’s business outlook held at its lowest level since February — highlighting the gloom once again engulfing Europe’s biggest economy after an early-year rebound fizzled out.
The Ifo institute’s expectations gauge dipped to 86.8 in August from a revised 87 the previous month, beating the 85.8 seen by analysts in a Bloomberg poll. A barometer of current conditions also declined.
Asia:
China’s Budget Spending Drops as Land Sales See Record Fall
China’s broad budget expenditure contracted and income from land sales for local governments fell at a record pace, a sign of fiscal weakness that may further increase calls on Beijing to add stimulus to support the $17 trillion economy.
The combined spending in the general public budget and the government fund account was about 19.7 trillion yuan ($2.8 trillion) in the first seven months of the year, down 2% from the same point in 2023, according to Bloomberg calculations based on data released by the Ministry of Finance on Monday.
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