🥇 Gold prices

Good morning. If you like us thought today is Friday, know it’s not - it’s Thursday.

It’s okay, you got this. Get some bread 💪 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🥇 Gold prices

• 🎭️ Facial recognition

• 🗞️ Bite-sized summaries

  • 🛫 Cyclone Dana

  • 🇰🇵 What’s happening in Korea?

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Stocks declined. IT stocks outperformed despite a weak market, while 22 of the 30 Sensex constituents fell, led by Mahindra & Mahindra and Sun Pharma. Midcap and smallcap indices showed gains, reflecting some investor interest in bargain hunting.

🌍️ International

• Wall Street closed lower, influenced by rising Treasury yields and concerns over Federal Reserve rate cuts. McDonald's dropped 5.12% due to an E. coli outbreak, and Boeing reported a $6B loss. In contrast, Texas Instruments gained 4% after exceeding profit forecasts.

COMMODITIES

🥇 Gold prices

In recent months, the price of gold has surged dramatically, climbing from $1,947 to $2,715 per ounce aka $68.67 to $95.94 per gram —an increase of nearly 40% within just a year.

This rise stands out for its magnitude and resilience against traditional economic indicators such as interest rates and inflation, which typically influence commodity prices.

Mohamed El-Erian, a prominent economist and adviser, argues that this trend reflects deeper geopolitical shifts and a growing discontent with the dollar-based financial system.

Decoupling from traditional influencers:

• Gold's price trajectory has been notably linear, with any dips quickly attracting new buyers.

• This behaviour is unusual, especially given the volatility in global markets and geopolitical tensions. For instance, while the S&P 500 index also saw significant gains—approximately 35%—the correlation between these asset classes is atypical.

• Historically, gold has served as a haven during times of uncertainty, but its current performance suggests it is becoming a strategic asset for many nations.

Global trends:

• A key driver behind gold's strength has been consistent purchasing by foreign central banks.

• Many countries are diversifying their reserves away from the dollar, seeking alternatives to the long-standing dollar-dominated payment system.

• This shift is partly fuelled by a growing scepticism towards U.S. economic policies and its perceived decline in commitment to multilateralism. El-Erian highlights two critical factors contributing to this trend:

  • Weaponisation of trade: The U.S. has increasingly used trade tariffs and sanctions as foreign policy tools, leading to a loss of trust among its allies and trading partners.

  • Russia's adaptation: Despite being excluded from the SWIFT international payment system, Russia has managed to sustain its economy through alternative trade agreements with other nations. This adaptation demonstrates that nations can find ways to bypass dollar dependence.

Implications for global stability:

• The implications of these developments extend beyond mere economic metrics; they threaten to fragment the global financial system and diminish the dollar's influence.

• As more countries build alternative financial pathways, the U.S.'s ability to shape international policy could be significantly undermined. El-Erian warns that while Western governments still have time to address these challenges, the window is closing rapidly.

• The rise in gold prices signals not just a shift in investment strategies but also a potential reconfiguration of global power dynamics.

Overall: As gold continues its ascent, it serves as both a barometer of economic sentiment and a reflection of shifting geopolitical landscapes. The West must take heed of these changes to maintain its influence in an increasingly multipolar world.

Read more: Financial Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🛫 Cyclone Dana - Kolkata airport will suspend flight operations from 6 PM on October 24 to 9 AM on October 25, 2024, due to Cyclone Dana. The Airports Authority of India (AAI) cited heavy winds and rainfall as the main reasons for the closure, prioritizing the safety of passengers and personnel. Cyclone Dana is expected to make landfall in Odisha with wind speeds reaching up to 120 km/h. Passengers are advised to stay updated on flight status and plan accordingly. The India Meteorological Department (IMD) continues to monitor the cyclone’s path and potential impacts.

🇰🇵 What’s happening in Korea? - US Defence Secretary Lloyd Austin confirmed that North Korea has sent troops to Russia, with reports suggesting around 3,000 troops are receiving training on drones and military equipment. South Korea’s intelligence first reported that 1,500 North Korean special warfare troops were taken to Russia by the navy, while Ukraine’s President Zelenskyy mentioned intelligence pointing to 10,000 soldiers preparing to support Russian forces in Ukraine. This development raises serious concerns for both Europe and the Indo-Pacific. Russia and North Korea have denied these reports, while the US and NATO view this as a significant and alarming issue.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• Jamie Dimon privately supports Kamala Harris. He just won’t say so.

• The Juul class action lawsuit is paying people huge amounts of money.

• Meta’s smart glasses outsell traditional Ray-Bans in some stores, even before AI features roll out.

• Air taxis and other electric-powered aircraft in the US cleared for takeoff with final FAA rules.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• ‘Venom: The Last Dance’ review: Tom Hardy wraps up his Marvel trilogy.

• Manchester City secure a comfortable 5-0 win over Sparta Prague on match week three of the Champions League. Scoreboard here.