_{ECONOMIC NEWS}

Americans’ Decreased Savings and Increased Spending: A Potential Recipe for Recession Risk?

Americans are saving less and spending more, a trend that has supported the economy in recent months but is expected to change as households aim to rebuild their cash reserves. The personal saving rate was 3.8% in January, below the pre-pandemic level of around 7%. This decrease in savings, combined with a record number of retirements expected this year, is likely to lead to a reduction in consumer spending, which constitutes about 70% of U.S. economic activity. The shift in spending habits since the pandemic, along with the depletion of pandemic-related savings, has led to increased consumer confidence, but also raised concerns about financial sustainability for low- and middle-income households. While economists do not currently predict a recession, they acknowledge the risk of weaker-than-anticipated spending, especially as wage growth is expected to slow and job gains are projected to decrease. Read More. 

_{FINANCIAL FOCUS}

Gold Prices Reach Record Peak: Potential for Further Significant Movements Ahead

Gold prices have reached a new record high, driven by expectations of US interest rate cuts, investors seeking safe-haven assets, and significant buying by central banks and Chinese investors. The price of gold hit $2,141 per troy ounce, surpassing the previous record of $2,135. The rally has been fueled by hopes of a Federal Reserve rate cut in June following weaker economic data, as gold benefits from lower borrowing costs.

Central bank emerging markets have been buying gold in response to the US weaponizing the dollar against Russia, while Chinese consumers have been purchasing gold as a safe haven due to local market instability. Despite the nominal all-time high, gold is still below its inflation-adjusted peak of $3,355 reached in 1980. Expectations of a Fed rate cut in June have increased, but analysts suggest that changing rate expectations are not the main driver of gold's recent surge. Instead, new market entrants seeking safety and speculative trading have contributed to the rise in gold prices.Read Now.