_{CURRENCY NEWS}

Soaring Gold Prices Signal Trouble for the Dollar’s Dominance

As global instability defined 2024, gold emerged as a preferred safe haven, surging over 28% from $2046 to $2622 per ounce, outperforming the S&P 500’s 25% total returns. Analysts at major banks like JP Morgan and Goldman Sachs project gold could hit $3000 in 2025, driven by central bank purchases and geopolitical turmoil. Meanwhile, the Asia Times predicts gold may reach $10,000 by 2030 as countries shift away from the U.S. dollar for trade settlements.

This trend stems from the seizure of Russian assets in 2022, which prompted nations to diversify reserves away from the dollar. While underdeveloped financial systems prevent many countries from trading in their own currencies, gold offers a viable alternative. However, for gold to play this role, its price must rise significantly to accommodate global trade volumes.

A potential trigger for this shift could be a collapse in American tech stocks, which have become a key instrument for financing the U.S. trade deficit. If such a crash occurs, international investors may lose confidence in the dollar, accelerating the move toward gold as a settlement mechanism. This scenario highlights growing concerns about the dollar’s waning dominance and the potential for seismic changes in global financial systems. Read More.

_{ECONOMIC NEWS}

Rising Credit Card Debt Hits 14-Year High, Flashing Economic Warning Signs

Credit card debt in the U.S. is surging, with banks writing off $45.7 billion in unpaid balances through the first three quarters of 2024, a 46% increase from the prior year and the highest level since 2010. While inflation has cooled from its peak, prices remain elevated, and the Federal Reserve's higher interest rates continue to burden consumers. Credit card balances now total $1.17 trillion, reflecting the financial strain many households face as delinquency rates remain elevated. These trends highlight growing stress on consumers, raising concerns about the broader economic outlook despite positive signals like GDP growth and rising incomes. With additional policy pressures potentially keeping inflation high, relief for credit card holders may remain elusive. Read More.