Gold, which had surged to near-record highs earlier this year, is now facing tough competition as the go-to safe haven for cautious investors. The precious metal has seen a decline in prices over the past few months, with a recent acceleration due to a surge in bond yields and the strengthening of the dollar.
High bond yields make government bonds more attractive to investors, as they offer regular coupon payments. Additionally, a stronger dollar makes it more expensive for foreign investors to purchase gold, which is denominated in dollars.
Earlier this year, as US regional banks collapsed and inflation remained stubborn, investors turned to gold as a refuge from market turmoil. There were also expectations that a banking crisis would lead the Federal Reserve to change its interest rate hiking campaign, further increasing demand for gold.
However, the banking sector has stabilized since then, and the US labor market and economy have remained resilient, causing concerns that the Fed may keep interest rates higher for longer. In September, the Fed indicated that it would likely raise rates one more time this year and keep them higher through 2024. This led to a rally in the dollar and further downward pressure on gold prices.
As a result, gold mining companies and gold-related investment funds have experienced declines in their share prices. Barrick Gold shares have lost 11% over the past three months, Kinross Gold has slid 3%, and Northam Platinum has tumbled 22%. The popular SPDR Gold Shares exchange-traded fund, which tracks the performance of physical gold, has declined 5% over the same period.
However, there are still proponents of gold who see it as a valuable asset. Costco’s CFO Richard Galanti mentioned during the company’s earnings call that they typically sell out their one-ounce gold bars within hours of restocking. Matt Dmytryszyn, CIO at Telemus, also believes that gold prices will trade between $1,700 and $1,900 over the next six months and holds a position in an exchange-traded fund that owns physical gold bars as a hedge against rate uncertainty.
While gold may be facing tough competition this year, there is still potential for unexpected events to generate demand for the precious metal.
Source: CNN Business’ Before the Bell newsletter – No URL provided
Nursing Schools Turn Away Thousands of Applicants
As registered nurses continue to go on strike to protest staffing shortages, nursing schools are facing an unfortunate predicament of turning away thousands of applicants who want to enter or advance in the nursing profession. Last year, nearly 78,200 qualified applications were not offered spots at nursing schools, according to the American Association of Colleges of Nursing.
The shortage of staffing is the main reason why nursing schools cannot accept more students who aspire to become registered nurses. Schools are grappling with a lack of faculty, clinical placements for students, and preceptors who supervise students during their rotations at healthcare providers. Additionally, preceptors are limited by state nursing boards in terms of how many students they can oversee.
Expanding nursing pools is not as simple as increasing the number of students, as stated by Judith Jarosinski, a professor emerita at Salisbury University’s School of Nursing in Maryland. It requires addressing the issues of faculty shortage, clinical placements, and preceptor limitations.
Source: CNN – No URL provided
Girl Scouts Discontinue Cult-Favorite Cookie
The Girl Scouts of the USA have made the decision to discontinue the Raspberry Rally cookie, just a year after its debut caused a frenzy. Raspberry Rally, which was introduced as a “sister” cookie to the iconic Thin Mints, featured a bright pink berry-flavored cookie dipped in the same chocolate coating as its sibling.
The Raspberry Rally was the Girl Scouts’ first-ever cookie to be exclusively sold online, aimed at enhancing their digital sales strategy. However, despite the initial excitement surrounding its release, the cookie will not be sold in the upcoming cookie-sales season.
Details on the reason for discontinuation or any potential replacement cookie have not been provided.
Source: CNN – No URL provided