The day after Wall Street reached new records, the Governor Fed calmed the mood to some “unpleasant” statements.
Meanwhile, more and more investors adds noble metals into their portfolios in an effort to diversify their property.
The week has begun optimistic with the news that Nvidia, an increasingly crucial infrastructure provider for the next wave of artificial intelligence, invested up to $ 100 billion in Openai. Companies plan to build new, high-effective data centers of artificial intelligence capacity of ten gigavates. The first phase of the partnership is expected to be launched in the second half of 2026, using the Nvidia’s faith Rubin platform. Further details of cooperation will be known in the coming weeks, but the fever of the Iduclines have been raised on Monday (Section Nvidie increased by a new record of the company from $ 184.55, and the market value of the company), but also the entire New York Stock Exchange. The indices have reached record values again, and the S & P 500 reached its 28. record this year.
Powell warns of inflation and high stock prices
On Tuesday morning, the Stock Indices in New York were still in green, but then they headed down. The President of the Federal Reserve Jerome Powell emphasized that in the current situation (on the one hand, inflation is still too high, on the other hand, increasingly weaker labor market) the implementation of monetary policy is a big challenge. Fed truly launched a new mitigation of monetary policy in September, but Powell now emphasizes that he cannot ignore inflation. This may mean that the remaining two reductions are interest rates this year, which are expected financial markets, questionable. Last week, the Fed decision to reduce the interest rates for a quarter point and signals that he was willing to make two more reductions this year (at his meetings in October and December), the stock exchange, reports SEEbiz. But obviously it is no longer guaranteed. Powell also warned that the shares in New York were already quite highly appreciated according to many measures.
Great time for gold
However, the prices of precious metals, which have recently proved to be especially safe refuge from various uncertainties such as inflation, financial crises, wars and remaining geopolitical tensions, continue to grow. Only this year, gold has risen by 43 percent, and silver for more than 50 percent. On Tuesday, 3791 dollars or 3210 euros should be paid for the ounce of 31.1 grams, which is a new record. Stocks of companies dealing with gold digging also grow strongly. The most famous American ETF, which monitors the shares of the Rudar Gold (GDX), increased by 110 percent (in dollars) this year. Ounce of silver now worth more than $ 44. That is most in the last 14 years. More and more analysts predict that silver, which is also an important raw material in the industry, in a few months to break a 50 dollar boundary, but before that “must” follow correction.
A correction is expected in a short time
Gold, silver and companies related to the production of precious metals, this year, this year, strongly accelerated upwards and now quite a number of investors speculate whether we are waiting for a descending correction. Given the situation in the US and events in its central bank, there is general expectation to continue to operate well, but we are currently preparing for potential correction that could open the acquisitions of certain companies before posting the results for the third quarter (end of October). Despite the above, we have a strange situation in gold, where there are no euphoria in spite of the records as during previous jumps. Halls with precious metal manufacturers do not “shoot at the seams” as in the usual last phase of the bull’s trend and due to it, I do not expect anything more than the correction for taking profits.
