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 Investors shift from US government bonds to Gold: AUGMONT BULLION REPORT

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  • As investors looked for safe-haven assets, shifting from government bonds to gold in response to rising fears about the US fiscal outlook, gold climbed toward $3340 to reach a nearly two-week high.
  • Following the introduction of a proposed US federal budget that could increase the already significant deficit, risk sentiment declined. This was made worse by Moody’s recent reduction of the US credit rating because of growing debt levels and the Fed’s cautious economic outlook.
  • With the continuous turmoil in the Middle East and President Trump’s apparent retreat from mediating the Russia-Ukraine issue, geopolitical tensions further increased the allure of gold.
  • In the meantime, Chinese customs statistics revealed that robust demand and the central bank’s issuance of additional import quotas amid the height of US-China trade tensions caused gold imports to soar to an 11-month high of 127.5 metric tonnes in April, up 73% from March.

Technical Triggers  

  • As gold has changed its momentum and moved higher above $3300 (~Rs 95500), the rally can continue towards $3380 (~Rs 97500), but prices are expected not to sustain beyond that.
  • Silver prices are gaining momentum and close to their resistance level of $34(~Rs 99500). We could see a reversal if prices don’t sustain. If prices sustain above these levels, the next target would be $35(~Rs 102,000).

Support and Resistance

MetalSupport LevelResistance Level
International Gold$3200/oz$3380/oz
Indian Gold₹92,000/10 gm₹97,500/10 gm
International Silver$32/oz$34/oz
Indian Silver₹94,000/kg₹99,500/kg

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US Jewellery Companies Continued To Shrink In The Third Quarter:JBT

During Q3, Business Closures Dropped To 116 Compared To 126 In The Prior Year’s Third Quarter, Driven By 88 General Operational Cessations, 28 Acquisitions Or Mergers, and Zero Bankruptcies.

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The number of active US jewelry companies continued to shrink in the third quarter, but at a slower pace than a year ago, according to the latest data from the Jewelers Board of Trade (JBT).The US jewelry industry continued its structural consolidation through Q3, though the pace of business closures showed signs of stabilizing compared to the previous year. Data from the Jewelers Board of Trade (JBT) reflects ongoing consolidation across retail, wholesale, and manufacturing, coupled with heightened credit volatility.

Key Data & Metrics

Nationwide, the active business footprint stands at 21,831 companies, reflecting a 1.4% year-over-year decline. During Q3, business closures dropped to 116 compared to 126 in the prior year’s third quarter, driven by 88 general operational cessations, 28 acquisitions or mergers, and zero bankruptcies. Meanwhile, new market entrants also slowed, with 67 new business openings recorded in Q3 down from 89 during the same period last year.

Sector-by-Sector Breakdown

SectorActive CountYoY ChangeImpact Summary
Retailers16,564-1.5%Makes up the majority of the sector; experienced the largest net store count reduction.
Manufacturers2,061-1.7%Steepest percentage decline among all segments.
Wholesalers3,206-0.9%Relatively stable, holding the mildest contraction rate.

Credit & Financial Health Trends

The JBT report highlights dynamic shifts in creditworthiness across US and Canadian businesses, signaling bifurcated financial health:

  • Credit Downgrades: Jumped sharply to 1,655 (up from 620 in Q3 of the prior year).
  • Credit Upgrades: Rose significantly to 1,480 (up from 551 in Q3 of the prior year).

While net business closures are tapering off, high numbers of simultaneous upgrades and downgrades point to a split market where resilient operators are strengthening their positions while vulnerable businesses face tighter financial pressures.

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