October Gold News 2018

Financial traders Forex believe that changes to automotive legislation in China could be about to drive the price of Platinum up once more, climbing back over $900 per ounce.

Investment bankers Goldman Sachs believe that investor fears are benefitting gold, with increased demand and a sharp rise in the price per ounce of the precious metal already experienced.

The firm is forecasting $1,250 per ounce by the end of the year, and $1,350 by the end of next summer.

The latest GDP figures from Europe show that growth in the Eurozone has halved, registering 0.2% in the third quarter of 2018 despite being forecast to stay at 0.4%.

Italy and Germany were the big losers in the last quarter, while France reported improved gross domestic product growth.

Brazil has elected Jair Messias Bolsonaro as its next president, with Hamilton Mourão serving as vice-president. The PSL – Social Liberal Party – led by Bolsonaro won the second round of voting with 55.1%, compared to 44.9% achieved by Fernando Haddad of the Workers’ Party.

German Chancellor Angela Merkel announced yesterday that she would not be standing for re-election as both Chair of the Christian Democrats and as Chancellor of Germany, with plans to completely withdraw from politics.

American financial services firm Wells Fargo has said that gold’s recent rally will not last long, suggesting the latest stock market corrections are the only reason behind a gold resurgence. Earlier this month Wall Street experienced heavy losses, with the Dow Jones losing 800 points in one session to have its worst day in eight months.

The price of Palladium has risen today to a record high of £885.04 per ounce, driven by a supply shortage and concerns that the United States might withdraw from the INF (Intermediate-Range Nuclear Forces) treaty.

The Central Bank of Hungary announced yesterday that it had bought gold for the first time in over 30 years, increasing the country’s gold reserves from 3.1 tons to 31.5 tons.

A Russian coin engraver based in the United States has gone viral overnight for his incredible craftsmanship in converting old Dollar and Nickel coins into collectable pieces of art.

Artist Roman Booteen specialises in engraving American coins and zippo lighters with unusual designs; often reimaginations of artwork or stories from other famous creatives.

Inflation in the UK fell last month from the six-month high of 2.7% in August, to the surprise of analysts. Many expected a slight decrease to 2.6%, but cheaper food and drink were accredited with the greater reduction of inflation.

Global stock markets suffered a domino effect of sell-offs today after a heavy day of losses on Wall Street yesterday, with the Dow Jones losing 800 points to record its worst day in eight months.

The price of gold rose 2.35% in response, from yesterday’s lows of £899.14 per ounce to a high of £924.27 today.

The CEO of one of the largest platinum mining firms is leading the calls for a new, commemorative platinum coin in honour of the late Nelson Mandela and the centenary of his birth.

Roger Baxter – the CEO of the Minerals Council South Africa – is advocating the platinum coin in the hope it will rival the Krugerrand; one of the world’s best-known gold coins.

The UK economy registered zero growth in August – below the predicted 0.1% growth rate - but is still up 0.7% in the three months to August, causing a headache for analysts and investors alike as they work out whether the economic slowdown is a natural correction or a sign of worse to come.

The US 10-year Treasury Bond yield rose today to a seven-year high as the United States approaches full employment and wage growth begins to pick up pace. Investors are concerned that these factors are driving up inflation and that the US economy may reach its limits soon. This caution is deterring investment in Treasury Bonds, which has seen the US Treasury offer better yields.

The EU Commission believes that the new Italian coalition is in breach of the common rules for debt and deficit repayment, with Valdis Dombrovskis and Pierre Moscovici citing “significant deviation” from the 2019 budget targets expected of Italy.

A major business conference was held in South Africa last week to discuss the new Mining Charter implemented by the country’s Mineral Resources minister, Gwede Mantashe, the week before.

The latest briefing from French bankers Société Générale says that the financial services company currently prefers to invest in silver rather than gold, citing favourable prices.

Researchers at Harvard University have found that gold particles, attached to an anti-inflammatory agent, may improve the recovery from muscle injuries – offering potential raft of physical therapy treatments for anyone ranging from athletes to the elderly.

Gold demand could be set to rise in the next decade thanks to the environmental benefits of the precious yellow metal, with gold mining and refining listed as one of the lowest greenhouse gas emissions sources for all metals.

The new information could spark a new wave of demand for investment gold as the drive for environmentally-friendly mining and sustainability in the economy grows.

The United States, Canada, and Mexico have finally agreed upon a new North American Free Trade Agreement after months of negotiations and resistance against concessions from all sides.

The deal, known as the US Mexico Canada Agreement (USMCA), will be signed in November by Presidents Trump, Trudeau, and Nieto.

Palladium is starting to make a comeback thanks to industrial demand and short supply, jumping up in price by more than 20% in US Dollars over the past six weeks.

At £812.62 per ounce, it's now less than £100 cheaper than gold; traditionally the most popular precious metal.