Frank Holmes, the CEO and chief investment officer of U.S. Global Investors, is clearing up some unkind words about gold. He said that despite gold prices being down around 9.5% for the year, the yellow metal has still been “remarkably resilient.” “If it all comes crashing down, I would want to have some gold in my portfolio, which has historically been an attractive store of value when markets cratered,” he said in a recent Forbes article.
Business Insider/Theron Mohamed
Market bull Ed Yardeni rings the alarm on further Fed rate hikes, warning they could tank asset prices and drag the US economy into a deep recession
Ed Yardeni has sounded the alarm on the Federal Reserve’s efforts to beat back inflation, warning the central bank’s aggression is threatening to choke the US economy.
“I think the Fed has to be really careful here,” he said on CNBC’s “Squawk Box Asia” on Thursday. “If they keep going without pausing, it’s really going to create a real possibility of a significant recession.”
Fed Chair Jerome Powell and his colleagues, in response to inflation hitting a 40-year high of 9.1% in June, have hiked interest rates from near zero in March to a range of 3% and 3.25% today. They have made three consecutive hikes of 75 basis points in recent months, and have signaled rates could climb as high as 4.6% next year.
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Gold Has Served As An Impressive Store Of Value During The Current “Everything Selloff”
“Gold is no longer a safe haven.” “Gold isn’t an effective hedge against inflation.” “Gold is dead.”
You may have heard and read these comments, and others like it, numerous times over the course of the recent “everything selloff.” This is staggeringly shortsighted to me. Gold is down only around 9.5% for the year, despite surging bond yields, and despite the U.S. dollar being at its strongest level ever relative to other major currencies.
Given these incredible headwinds, you would expect gold to have lost far more of its value than it has. But compared to other assets, from stocks to bonds to digital currencies, the yellow metal has been remarkably resilient.
Continue reading, here.
Fox Business/Megan Henney
Fed’s preferred inflation gauge accelerated more than expected in August
The Federal Reserve’s preferred inflation gauge accelerated again in August, keeping prices elevated near a four-decade high, according to new data released on Friday,
The personal consumption expenditures index showed that core prices, which strip out the more volatile measurements of food and energy, climbed 0.6% from the previous month and rose 4.9% on an annual basis, according to the Commerce Department.
Those figures are both higher than the 0.5% monthly increase and 4.7% annual increase forecast by Refinitiv economists, indicating that inflationary pressures are broadening throughout the economy. The reading is also up from July’s annual increase of 4.7%.
You can read the full story, here.