Gold vs. Silver the Next 5 Months

Market Rundown

VBL

Jul 22, 2024

∙ Paid

Housekeeping: Good Morning.

Gold revaluation is a process, not an event.

Today:

Premium: ANZ on Silver and Gold
Commentary: Gold buying meets silver selling

Equity Recap:

US equities declined on Friday, weighed down by energy (-1.29%) and technology (-1.27%)

Premium Markets: ANZ MidYear, Gold vs. Silver

ANZ On Silver

Investor demand for silver is picking up as the gold price rises.
The gold-to-silver price ratio has normalised to 77-78.
However, weakening industrial activity in China will be a headwind, if the gold price consolidates.

China’s silver imports are picking up…

ANZ on Gold

Moderating US inflation and a weakening labor market are bolstering the
case of two cuts this year.
Any delay in the Fed’s rate cut to beyond September will trigger a selloff.

Much more in Premium

Market News:

"Investors are set to start the week scrambling to decide if President Joe Biden’s decision to end his reelection campaign and endorse Vice President Kamala Harris increases or decreases Donald Trump’s chances of regaining power Source: Bloomberg

"President Xi Jinping unveiled sweeping plans to bolster the finances of China’s indebted local governments, as the ruling Communist Party announced its long-term blueprint for the world’s second-largest economy. Source: Bloomberg

"Chip politics are no longer just the chip industry’s problem. Investors got a sharp reminder last week of just how politicized the semiconductor industry has become.." Source: WSJ

"Berkshire Hathaway sold about 33.9 million shares of Bank of America for around $1.48 billion over multiple transactions this week, a regulatory filing showed. Source: CNBC

"The American economy has held up well against higher inflation and interest rates. Many individual borrowers haven’t... Source: WSJ

Politics/Geopolitics:

Israeli military called on Gazans to clear out of eastern parts of the Khan Younis ahead of a 'forceful' operation which comes after 'significant terrorist activity and rocket fire'.
Israel conducted a strike on Yemen’s Hodeidah on Saturday which killed six people and injured 80, while it was separately reported that Yemen’s Houthis said they fired missiles at Israel’s Eilat.
Israeli PM Netanyahu will meet with US President Biden on Tuesday, while Netanyahu said the port that Israel conducted a strike on was an entry port for weapons from Iran and the port attack reminds enemies that there is no place that Israel cannot reach. Israeli PM Netanyahu also said Israel will send a delegation to hostage deal talks on Thursday.
Ukrainian President Zelensky called for long-range weapons after drone attacks on Kyiv. In relevant news, Russia's Defence Ministry announced their forces captured two settlements in Ukraine.
Philippine Foreign Ministry said China and the Philippines reached an understanding on a provisional arrangement for resupply missions in the disputed South China Sea shoal.

Some headlines via NewSquawk or DataTrek