The U.S. federal government is in the midst of a shutdown. Closed federal offices, government employees furloughed, national parks and museums closed, and administrative and regulatory functions on hold. This is a not a minor inconvenience. This is a massive disruption. This will result in billions of lost productivity and further political uncertainty and risk. The situation is not just bad; it is a sign of institutional gridlock affecting the world’s largest economy. The consequences extend far beyond Washington. Confidence in the economy will decrease, public services will slow, and market volatility will increase. For the time being, all we can do is wait, and lose confidence, until Monday. Risk assets will be watching the shutdown, and how rapidly it is resolved will signal to the world confidence in the government and the economy. The shutdown is a signal, and a dangerous one at that. $BTC ,$XAU ,$XAG
Due to rampant speculation, smuggling distortions, supply hold-ups, sky-high prices in China, and global delivery issues, Silver is experiencing extreme volatility with prices jumping up and down. Silver usually makes much larger moves than gold whenever there is climbing industrial demand, especially with the solar sector, for limited supply and aggressive speculation. This makes Silver a critical component for short-term market movements. $XAG , $XAU
The Union Budget for 2026-27 has been released, which has led to an immediate and substantial depreciation of gold and silver. Following the budget announcement, gold and silver triggered their trading circuit limits due to massive and immediate dumping. Most Importantly, India is a major importer of gold and silver. Therefore, it can be deduced that the depreciation of gold and silver has, and will continue to, impact the global markets significantly. $XAU , $XAG
The last big Financial Crisis started with a lot of gold as a safe haven. It took 6 years after that gold peaked to the Financial Crisis to start the defaults. Something similar, but more aggravated, is what the data is showing today. With gold, silver, platinum, and palladium together rising, it is a safe bet it is most likely not a commodity rally to the normal healthy cycle. When the market is told that growth is to be expected, gold does not spike. When the market is told to expect stability, silver does not rise. This was the environment before 2008, and the default triggers then were on the long dated mortgages. Today, the default triggers are on the long dated sovereign debt. Stress build is historical, and the 2008 stress was the move towards the USD. Today, it is the move away from the USD. The USD has not been the risk bear anymore, and as a method of funding, it is being faded. This is when the investment is made towards real assets. Another point is that today, real assets with real counter risks are rising, and with them the gold and silver. The central banks are being net buyers of real assets, unlike the last global debt catastrophe. It is the USD that is the risk today unlike the last global debt catastrophe. The starting point is no more panic, instead it is the snow ball effects that the system has finally lost a lot of the flexibility. $XAU , $XAG
🚨This decision by Trump could very well ruin Canada
Trump has recently put Canada on notice regarding substantial tariffs, such as a 50% tariff on Canadian planes and potential 100% tariffs on all goods if Canada trades with China. This has sparked concerns of large scale disruptions with Canada’s economy as the U.S. is Canada’s biggest trade ally and key trade sectors like, aerospace, manufacturing and agriculture are particularly vulnerable.
Dear traders , $XAU and $XAG prices fell steeply as markets swiftly adjusted their predictions for interest rates and the value of the U.S. dollar. A possible Warsh-led Fed is characterized as more hawkish on inflation and tightening if price pressures persist; that sentiment pushed yields higher and the dollar stronger. That is often a headwind for precious metals: higher yields increase the opportunity cost of owning non-yielding assets like gold and silver, and a stronger dollar means it is more expensive to buy them for foreign buyers. Consequently, traders decreased hedges and safe-haven exposure, leading to a rapid, momentum-based decline rather than a gradual decline based on fundamentals.
Global traders have been speculating against the Federal Reserve once again as Powell continues to stress ‘data dependent decisions’ while being cautious about the progress with inflation. That said, there seems to be a growing gap between the expectations of the market and the rate of the Fed. With multiple rate cuts being predicted, Powell seems to be misguiding the market. With rate cuts being expected, and investing being done, a historical paradox could arise. If the predicted data is not available, there is bound to be a great deal of uncertainty. Such rate expectations have been historically proven to be inaccurate. In the current situation, the great paradox of investing is being witnessed Traders seem to be highly optimistic while the Federal Reserve seems to be averse to committing any rate cuts.