Gold Hits All-Time High, Layoffs Ease, FedWatch, Gold and Silver Charts
Weekly Recap for the Week Ending March 8, 2024
Domestic
1. Gold hits all-time high
Following last week’s core PCE inflation-fueled buying, gold prices continued to be bid up this week on expectations of Fed rate cuts in June.
Gold bugs were eager to buy, bidding gold price up to over $2,200 intra-day on Friday. As FOMO buyers rush in, I expect to see strong gold prices continue into next week. Mainstream news reporting on gold's recent performance and its potential for further gains will likely fuel this momentum.
2. Layoffs ease
Rising costs and fears of a recession are leading companies to announce layoffs to cut expenses. So far, March is seeing a reduced velocity of layoffs compared to prior months.
Companies announcing job cuts in 2024:
March
Inscribe: 40% of workforce
Our Next Energy: 13% of workforce
Project Ronin: 100% of workforce
Pristyn Care: 7% of workforce
February
Fisker: 15% of workforce
Electronic Arts: 5% of workforce
Sony Interactive: 8% of workforce
Bumble: 30% of workforce
Expedia: 8% of workforce
Finder: 17% of workforce
Buzzfeed: 16% of workforce
Rivian: 10% of workforce
Farfetch: 25% of workforce
CISCO: 5% of workforce
Wint Wealth: 20% of workforce
Away: 25% of workforce
Instacart: 7% of workforce
Mozilla: 5% of workforce
Riskified: 6% of workforce
Wisense: 100% of workforce
Everybuddy: 100% of workforce
CodeSee: 100% of workforce
Grammarly: 230 employees
Docusign: 6% of workforce
Amazon: 400 employees
Snap: 10% of workforce
Twig: 100% of workforce
Okta: 7% of workforce
Zoom: 2% of workforce
Polygon: 19% of workforce
3. CME FedWatch chart
Up slightly from the prior week, the first likely cut is expected in June with a 57.4% probability of a 25 basis point reduction. Like last week, the chart suggests four cuts totaling 100 basis points are the most likely scenario for the year.
4. Gold and silver charts
Gold
Fueled by FOMO, gold buyers eagerly snatched up available inventory despite limited gold coin sales events. During the week volume spiked in discount-priced coins while remaining steady on regular-priced products.
Silver
We’ve seen some pullback in online dealer discounts in silver premiums, indicated by the green-shaded area. The blue shade shows the volume of regular-priced bullion coins, which have remained rangebound since early January.
A reduction in discounted premiums volume would potentially indicate a change in the trend toward higher premiums. Watch out for that.
Disclaimer: The Pipeline is intended to provide general information and personal opinions related to disaster preparedness and investing in precious metals. I am not a certified financial planner (CFP), chartered financial analyst (CFA), or a certified public accountant (CPA). The content of this publication should never be considered a substitute for professional financial advice. Before taking any action based on anything within this publication, you should always consult with a qualified financial professional familiar with your unique situation. Investing involves risks, and I am not liable for any investment decisions made or results obtained from the use of information in this publication.