Latest news with #safehaven
Yahoo
a day ago
- Business
- Yahoo
Dollar Rebounds on Hawkish Powell
The dollar index (DXY00) Wednesday recovered from early losses and rose by +0.09%. The dollar moved higher Wednesday afternoon due to hawkish comments from Fed Chair Powell, who said, 'We expect a meaningful amount of inflation in the coming months.' Mr. Powell's comments signal the Fed is not close to cutting interest rates and is supportive of the dollar. Also, heightened geopolitical risks in the Middle East support safe-haven demand for the dollar. The dollar on Wednesday initially moved lower on the weaker-than-expected reports on US May housing starts and building permits. Also, the action by the FOMC to cut its US 2025 GDP forecast was bearish for the dollar. In addition, the FOMC's dot-plot that projects two 25 bp interest rate cuts by the end of the year is negative for the dollar. A Look Ahead at the Fed Dollar Rebounds on Hawkish Powell Dollar Slips Ahead of FOMC Meeting Results Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! US weekly initial unemployment claims fell -5,000 to 245,000, right on expectations. US May housing starts fell -9.8% m/m to a 5-year low of 1.256 million, weaker than expectations of 1.350 million. May building permits, a proxy for future construction, unexpectedly fell -2.0% m/m to a 4-3/4 year low of 1.393 million, weaker than expectations of no change at 1.422 million. As expected, the FOMC kept the fed funds target rate unchanged at 4.25%-4.50% and said the uncertainty about the economic outlook has 'diminished but remains elevated.' The statement removed the language that the committee 'judges that the risks of higher unemployment and higher inflation have risen.' The FOMC cut its US 2025 GDP estimate to 1.4% from 1.7% in March and raised its 2025 core inflation estimate to 3.1% from 2.8% in March. The Fed's dot plot of interest rate projections shows the median fed funds rate forecast at the end of 2025 at 3.875%, implying two quarter-point cuts this year, the same as they expected in March. Fed Chair Powell said, 'We expect a meaningful amount of inflation in the coming months' as the increases in tariffs are likely to boost prices and that their effects on inflation could be more persistent. The markets are discounting the chances at 10% for a -25 bp rate cut after the July 29-30 FOMC meeting. EUR/USD (^EURUSD) Wednesday fell by -0.04%. The euro on Wednesday gave up an early advance and finished slightly lower due to a rebound in the dollar. The euro was also under pressure Wednesday due to dovish comments from ECB Governing Council member Panetta, who stated that the Eurozone's economic prospects face 'substantial' risks due to US tariffs and the ongoing conflict in the Middle East. Swaps are discounting the chances at 7% for a -25 bp rate cut by the ECB at the July 24 policy meeting. USD/JPY (^USDJPY) Wednesday fell by -0.09%. The yen posted modest gains on Wednesday as heightened geopolitical risks in the Middle East have prompted safe-haven buying of the yen. Wednesday's report showing a smaller-than-expected decline in Japan's Apr core machine orders was also supportive of the yen. The yen fell back from its best level when T-note yields rose on hawkish comments from Fed Chair Powell. Japan Apr core machine orders fell -9.1% m/m, a smaller decline than expectations of -9.5% m/m. Japanese trade news was mixed as Japan's May exports fell -1.7% y/y, a smaller decline than expectations of -3.7% y/y. However, May imports fell -7.7% y/y, weaker than expectations of -5.9% y/y and the biggest decline in 16 months. August gold (GCQ25) Wednesday closed up +1.20 (+0.04%), and July silver (SIN25) closed down -0.238 (-0.64%). Precious metals on Wednesday settled mixed. Heightened geopolitical risks in the Middle East support safe-haven demand for precious metals as the war between Israel and Iran continues for a sixth day with no end in sight. In addition, global trade uncertainty is boosting safe-haven demand for precious metals after President Trump indicated last Wednesday that he is moving ahead with his reciprocal tariffs. Fund buying of silver continues to support prices as silver holdings in ETFs rose to a 2-1/4 year high Tuesday. Wednesday's recovery in the dollar from early losses to higher on the day undercut precious metals prices. Also, gold prices fell more than -$10 an ounce in after-hours trading Wednesday afternoon due to hawkish comments from Fed Chair Powell, who said, 'We expect a meaningful amount of inflation in the coming months' due to tariffs. Silver prices also fell back after the FOMC cut its US 2025 GDP forecast and following Wednesday's weaker-than-expected reports on US May housing starts and building permits, which showed weakness in industrial metals demand. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
The Best Dividend-Paying Gold Stock to Invest $10,000 In Right Now
The markets are volatile today thanks to geopolitical and economic concerns. As worries flare up on Wall Street, gold is often seen as a safe haven. With gold prices already elevated, here is a gold stock that is worth buying if you are concerned about the market. 10 stocks we like better than Franco-Nevada › Gold is seen by some as a safe-haven investment in times of economic and political uncertainty. For those looking to buy it, there are multiple ways to own gold, from simply buying bullion (gold coins or bars) to investing in precious metal mining companies. If you are thinking about investing in gold now (or anytime), there's also a unique niche in the gold space that is worth exploring further. If it's to your liking, it's also why Franco-Nevada (NYSE: FNV) could be worth a $10,000 investment right now. Gold is a metal -- it doesn't really do anything. That's kind of a joke, but it's also true. If you buy an ounce of gold (for instance, a single 1-ounce gold American Eagle coin), it will always and only ever be 1 ounce of gold. It can't grow into more than that, so the price change in gold is the only thing that will impact that coin's value. And, while you own that gold, you'll need to put it somewhere safe. That's not too big a deal for one coin, but if you own a lot of gold coins, it becomes a bit more problematic. There are also transaction fees to consider, with gold coins being a rather expensive way to buy the metal, given the markups that coin dealers tend to impose so they can make a living. All in, gold coins aren't always the best way to own gold unless you truly believe that the world economic order is going to collapse. If that happens, you may need to spend those coins. If that outcome doesn't come to pass, then gold is really more of a hedge against bad economic outcomes. You could invest in gold in some other way. For example, you can buy exchange-traded funds (ETFs) that directly own gold. That's fine, but high costs and the "gold is only gold" issue are still at play. A better option for many investors is buying stock in gold miners. Precious metals miners normally mine for more than just gold, but the key here is really the opportunity for a business to grow over time. The financial performance of precious metals miners rises and falls with the price of the metals they produce, so gold prices are still a key factor. However, over time, investors can benefit from new mines, upgrades of old mines, and acquisitions. But there's an even better option in streaming and royalty companies like Franco-Nevada. One of the big problems with miners is that the process of running a mine is expensive. So, when precious metals prices are low, miners often lose money. Franco-Nevada sidesteps that risk because it provides miners with cash up front (which is used to build mines and expand existing assets, among other things) for the right to buy gold and other metals at advantaged prices in the future. These are called streams and royalties. Essentially, Franco-Nevada is locking in good prices that pretty much ensure it will make a profit when it goes to sell the precious metals it buys. The proof of the sustainability of Franco-Nevada's business model comes from its dividend. The Canadian company has increased its dividend annually for 18 consecutive years, which is roughly how long the business has existed. If you are a dividend investor looking for a way to invest in gold, Franco-Nevada is a solid option. That said, the dividend yield is a tiny 0.9%. You aren't buying for the yield -- you are buying for the diversification benefit gold may offer your portfolio. Diversification, meanwhile, is where Franco-Nevada shines. It invests in gold and silver streams, which make up the lion's share of its assets. But it also invests in energy and other metals. Gold prices can be volatile, so having a little diversification with other so-called "hard assets" is likely to be a good idea for most investors. In the end, you are likely looking for a hedge to protect against adversity, not going all-in with a 100% bet on gold. Franco-Nevada offers that hedge with broader commodity exposure than its closest peers. Note that most investors should probably keep 10% or even less of their portfolio in gold, anyway. Franco-Nevada's share price is around $170 today, so $10,000 will net you around 58 shares. But that's not really what you are getting when you buy the stock. What you are getting is peace of mind, since you'll be adding a hard asset to your portfolio mix that Wall Street has long seen as a safe-haven investment. So long as you don't go overboard, a small investment in Franco-Nevada can go a long way in helping you sleep at night when markets get volatile. Before you buy stock in Franco-Nevada, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Franco-Nevada wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Reuben Gregg Brewer has positions in Franco-Nevada. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Best Dividend-Paying Gold Stock to Invest $10,000 In Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
2 days ago
- Business
- Zawya
Gold prices holds steady, platinum scales over 10-year high
Gold prices held steady as investors kept an eye on the conflict between Israel and Iran, while platinum scaled its highest level since September 2014 on speculative buying. Spot gold was steady at $3,369.79 an ounce at 0955 GMT. U.S. gold futures fell 0.6% to $3,387.30. "We're not expecting that gold prices will fall back to 3,000 because there are a lot of uncertainties," said ANZ Commodity Strategist Soni Kumari, pointing to whether the U.S. decides to become directly involved in the conflict. Iranian missiles struck an Israeli hospital on Thursday while Israel hit targets across Iran as President Donald Trump kept the world guessing about whether the U.S. would join Israel in air strikes seeking to destroy Tehran's nuclear facilities. Meanwhile, the Fed held interest rates steady on Wednesday and policymakers still forecast cutting rates by half-a-percentage point this year, but slowed their overall outlook for rate cuts in response to a more challenging economic outlook. However, Fed Chair Jerome Powell cautioned against putting too much weight on this outlook, warning of "meaningful" inflation ahead as higher import tariffs loom. Gold is considered a safe-haven asset during times of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment. In other metals, platinum lost 2.5% to $1,288.67, but hit its highest level since September 2014 earlier in the session. Platinum prices are supported by rising Chinese imports, ongoing supply concerns, high lease rates and increased investor interest as high gold prices push consumers toward cheaper alternatives. The fundamentals in the platinum market have not changed, whenever a key technical level such as the 1,000 mark is broken, investors and the speculators will start buying, Kumari said. Palladium lost 1% to $1,038.18, while silver fell 1.1% to $36.32 per ounce. (Reporting by Anushree Mukherjee in Bengaluru;Editing by Elaine Hardcastle)
The Independent
2 days ago
- General
- The Independent
First family fleeing abuse get keys to The Independent's safe haven
A safe haven built by The Independent's Brick by Brick campaign is now officially home to a family fleeing domestic abuse. Construction of the purpose-built safe houses was completed earlier this year, and now a survivor of abuse has been handed the keys to the new home - and a fresh start. The hugely successful campaign, launched in partnership with leading domestic abuse charity Refuge, was backed by readers, politicians, royalty and celebrities when it launched in September 2024. When the initial target of £300,000 was reached after just a month of fundraising, The Independent decided to build a second house with over £585,619 raised in total by our generous readers. The first occupant of the houses, who has to remain anonymous for safety reasons, said: "As soon as I walked in, it felt warm, safe and homely. It's the first time I had slept properly in months. 'The children are the happiest they have been for a long time." The new semi-detached houses, built by Persimmon Homes, are in a secret location to protect survivors. They have two double-sized bedrooms, open-plan kitchens and built-in cupboard storage space, as well as a private drive with off-road parking and solar panels on the roof. The homes also include a number of safety features, including CCTV, a fireproof letter box and enhanced locking on windows and doors. Geordie Greig, editor-in-chief of The Independent, said: 'This is significant because it helps the most vulnerable people who are in danger of their lives being severely damaged by abuse. 'It's permanent because we aim to build a house that will be there for generations as a sanctuary to safeguard these people who are on the run, from situations which are dangerous and life-threatening.' After the 10,946 bricks were laid, an all-female team of decorators added the finishing touches to the property to make it a true home for those seeking refuge. Every new family coming into the home will receive a welcome pack with a variety of items such as essential toiletries and key things they'll need for their first few days in the house. Children will also receive new toys and books to help them settle in. To help the house feel more welcoming, the team has used bright, airy colours to help 'ignite that feeling of well-being, freedom and moving on'. During a family's stay, Refuge staff will provide emotional support and legal advice, and will support women with safety planning, budgeting, finding a safe new home, dealing with debt, applying for welfare benefits, accessing health services, and finding nurseries and schools. As the house will see many survivors pass through it, Refuge will carry out maintenance and a deep clean between each family. The houses were funded by The Independent's Brick by Brick campaign, which was launched in September 2024 in response to the nationwide domestic abuse crisis. Thousands of women across the UK face danger in their own homes, but a woman is turned away from a refuge every two hours due to a lack of space or capacity. The Queen, Sir Keir Starmer, Dame Helen Mirren, Dame Joanna Lumley, Olivia Colman, Victoria Derbyshire, Andi Oliver, David Morrissey and Sir Patrick Stewart were among those to offer their support for the campaign. The Independent heard testimony from a wide range of survivors, including women who were beaten, lost their jobs, friends and children, while others were simply too terrified to leave.
Wall Street Journal
2 days ago
- Business
- Wall Street Journal
JGB Edge Higher Amid Middle East Tensions
0019 GMT — JGBs edge higher in price terms amid Middle East tensions that typically support the safe-haven allure of government debt. Investors may also closely monitor the Japanese Finance Ministry's auction today of about 2.4 trillion of five-year sovereign notes for any signs of investor demand. Expectations for BOJ rate increases are unlikely to strengthen, SMBC Nikko Securities' Lisa Mochizuki says, citing factors including Gov. Ueda's press conference earlier this week. However, 'supply/demand dynamics work against five-year JGBs,' the junior analyst says in a note. The five-year auction is expected to produce 'rather weak' results, the junior analyst adds. The 10-year JGB yield is down 1 bp at 1.445%. (
