After increasing gold holdings by 84 tons in the first quarter of this year, central banks continued to be net gold buyers in April.
Globally, central banks added a net 19.4 tons of gold to their holdings in April.
Federal Reserve Chairman Jerome Powell, President Biden and other government officials insist the US economy is in a strong position to handle an inflation fight. In his podcast, Peter Schiff explains why they are wrong. In fact, America has never been in a weaker position to take on an inflation fight.
Please note: the COTs report was published 6/3/2022 for the period ending 5/31/2022. “Managed Money” and “Hedge Funds” are used interchangeably.
Gold
Since the peak on March 8, Managed Money has massively reduced its Net Long positions by 98k contracts or 66%. Despite massive selling, the gold price has actually held up fairly well. The last time Managed Money net longs dropped this low in February, gold was struggling at the $1800 level, versus the struggle at $1850 now.
Peter Schiff recently appeared on Tucker Carlson to talk about inflation, the economy, and Treasury Secretary Janet Yellen’s admission that she was wrong about inflation. There’s an economic hurricane on the horizon and Peter said it’s going to be a Cat 5.
The May jobs report was widely regarded as strong. The US economy added 390,000 jobs, according to the latest data. But a deeper dive into that data reveals that the labor market might not be as strong as the mainstream spin is leading you to believe. Even with all the new jobs, hiring slowed in five out of eight sectors.
Why haven’t gold and silver rallied as one would expect in such a high inflation environment? In this episode of the Friday Gold Wrap, host Mike Maharrey delves into some of the psychology driving the markets and explains why it could be blinding people to just how serious the economic situation has become. He also reports some news that indicates some people may be starting to figure it out.
Average people are worried about the economy. Consumer confidence has been falling. People undoubtedly feel the squeeze of inflation. But despite their general discontent, most people don’t seem to think a severe economic downturn is imminent — despite many warning signs.
Why not?
Demand for American Gold Eagles exploded in May according to the latest data from the US Mint.
A lot of investors wonder about the lack of movement in gold and silver, especially given rampant inflation. Why haven’t we seen a big rally in precious metals as many expected? Why shouldn’t you just give up on gold and silver?
Peter Schiff answers these questions in this video.
Consumer confidence hit a 10-year low earlier this year and continues to sag as inflation squeezes wallets.
The Conference Board’s consumer confidence index for May slipped to 106.4. That was down from 108.6 in April.
