Weekly Digest: Gold Eyes New Record, Banking Crisis Aftermath


3 minutes read

Apr 8, 2023

A blue suited man sitting on a gold bar

08/04/2023: Gold hits a 13-month high and may be nearing a new record, JPMorgan CEO warns of banking crisis repercussions, Finland officially joins NATO. And more.

💡Quote of the week

“Gold’s greatest beauty is its ability to maintain value. It’s thought of as the ultimate inflation hedge. Since the peg of the gold price to the dollar ended with President Richard Nixon’s departure from the Bretton Woods financial system in 1971, gold’s price has risen handily in real terms.” John Authers, Bloomberg Opinion

Investment news

gold bars and coins on a reflective surface

Safe-haven gold set for a weekly rise. A stronger U.S. dollar and higher yields weighed on gold Thursday, but bullion prices still rose as weak U.S. economic data sparked concerns. On Wednesday, gold climbed to a 13-month high, surpassing the key $2,000/oz level.

On Thursday, spot gold decreased by 0.7% to $2,005.98 an ounce, while U.S. gold futures for June delivery fell to $2,021.70.

📈 Stocks go up. European stock markets closed higher on Thursday ahead of the Easter weekend and the U.S. job report. (CNBC)

As a result of shaking off some of the pessimism that's led to three straight marginal losses, the Stoxx 600 index closed up 0.5%.

🙅‍♂️ Don’t dream it’s over. JPMorgan Chase CEO Jamie Dimon says the banking crisis is not over and will cause “repercussions for years to come.” (CNBC)

“As I write this letter, the current crisis is not yet over, and even when it is behind us, there will be repercussions from it for years to come,” the longtime CEO said in his annual letter to shareholders.

⏱️ Hiring freeze. U.S. company payrolls rose just 145,000 for the month, down from 261,000 in February, and below the Dow Jones estimate of 210,000, a clear sign the economy is slowing. (CNBC)

“Our March payroll data is one of several signals that the economy is slowing. Employers are pulling back from a year of strong hiring and pay growth, after a three-month plateau, is inching down,” said ADP’s chief economist, Nela Richardson.

✈️ (Not) to the moon! After failing to secure a funding lifeline, Virgin Orbit filed for Chapter 11 bankruptcy protection in the U.S. (CNBC)

The news comes days after CNBC got audio of Virgin Orbit CEO Dan Hart saying the company was ceasing operations "for the foreseeable future."

🌐 A fragmented world is likely to be a poorer one. IMF says U.S.-China tensions could disrupt overseas investment and eventually lead to a 2% drop in global GDP. (CNBC)

“In a fragmented world with heightened geopolitical tensions, investors may worry that nonaligned economies will be forced to choose one bloc or the other in the future, and such uncertainty could intensify losses,” IMF wrote in a note.

📸 Image of the week

A meme mocking first-time home buyers facing rising housing prices, high mortgage rates, and looming recession.


A picture of an hourglass standing on a wooden surface

🕐 A ticking time bomb. "Big Short" investor Dave Burt once again sees financial disaster brewing in the real estate market more than a decade after the U.S. mortgage meltdown threatened to destroy the international financial system. (CNBC)

“Will they become chasms this year? I’m not sure. But an observation of the highest frequency fundamental data on home sales and home inventories indicates that things are definitely going south for these exposed properties,” Burt said.

What else is happening

Donald Trump waving at journalists

👮‍♂️ Guilty not guilty. Former U.S. President Donald Trump has been charged with 34 criminal counts of falsifying business records. The charges are connected to hush money payments to two women before the 2016 presidential election. (Reuters)

"Not guilty," Trump, 76, said when asked by the judge in court how he pleaded.

🇫🇮 NATO's 31st member. Finland officially becomes a NATO member, doubling the military alliance’s border with Russia. (Reuters)

“Finland’s membership is not targeted against anyone. Nor does it change the foundations or objectives of Finland’s foreign and security policy,” Finnish President Sauli Niinisto said in a written statement.

And finally…

A picture of a Snowball Earth

🧊 Frozen. A new study sheds light on how life survived during the Cryogenian Period, also known as "Snowball Earth," when the planet was twice frozen over with runaway glaciation. (Reuters)

The research provides a deeper understanding of how life endured during this period of extreme climate change. The findings, published in the journal Nature Communications, suggest that "Slushball Earth" conditions existed, with open-water areas in mid-latitude oceans, rather than a completely frozen planet.


See you next week!


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