(Kitco News) – The gold market is starting the week on a slightly positive note, and while it may not be catching a major safe-haven bid after a 24-hour insurrection in Russia, analysts said that gold should remain a vital portfolio diversifier in times of heightened uncertainty.
The gold market remains under the critical psychological level at $1,950 an ounce after mercenaries with the Wagner Group, led by Yevgeny Prigozhin, launched an armed rebellion and marched to within 200 kilometers of Moscow during the weekend.
August gold futures last traded at $1,936 an ounce, up 0.34% on the day.
The rebellion ended nearly as quickly as it started as Moscow made a deal with Prigozhin, exiling him to Belarus and offering amnesty to Wagner’s professional soldiers if they stood down.
Although Vladimir Putin remains the leader of Russia, according to many political analysts, his iron grip on power has weakened significantly in the last 24 hours.
Jeffrey Christian, managing director of CPM Group, said with the attempted coup failing, gold prices in the next few days could see some short-term selling pressure as cooling geopolitical fears reduce the precious metal’s safe-haven allure.
However, he added that long-term, the instability seen during the weekend should provide long-term support for the precious metal.
“Gold prices might come off further as investors continue the long liquidation and lack of stronger physical demand for gold. Interest rates may soften slightly, as might oil prices. Equities in the Western markets may rise some. Such moves would be short-lived in our view, a day or so, before the realities of what an ultimate change of Russian government might mean for the world,” he said in an exclusive comment to Kitco News. “So longer term, there could be bouts of market concerns about the postures and behaviors of a future Russian government, but there also may be reduced market anxieties due to the realization that Russia’s stature on the world political and economic stages will be diminished regardless of which outcome ultimately unfolds.”
Christian added that he is not surprised that the insurrection has happened.
“CPM has been saying and writing for perhaps 16 months that there would be internal dissent within Russia due to Putin’s mismanagement of a variety of things compounded by his decision to attack Ukraine. We have been suggesting that, in our view, Putin would be replaced, most likely by a much more hard-line set of leaders, but we did not expect that until the end of the war,” he said. “Our expectation for Russian politics is that there will be a regime change at some point. The events of Friday and Saturday are not over. They represent an acceleration toward an end to the war against Ukraine and toward a new government in Russia. We do assume that a post-Putin government will be a harder line. There are no alternatives available in Russian politics today that would represent a softening of the imperial view of what Russia’s rightful place should be in the world.”
Michele Schneider, director of trading education and research at MarketGauge, said that the attempted coup in Russia shows just how fragile the world is. She added that she expects geopolitical volatility to rise as the decades-long globalization trend weakens.
“It doesn’t matter where you look; you can see the fragility in the social fabric everywhere,” she said. “There are two things that I’m pretty certain about. One: Food prices aren’t coming down anytime soon. And number two: the ECB and potentially the Federal Reserve continue to tighten the screws on the global economy by raising interest rates. You’ve now got two things that are choking consumers: rising prices, inflation and higher interest rates. The instability over the weekend was just a, was just a ripple towards the climax, which we have not seen yet.”
In this current environment, Schneider said that even if gold prices move lower, it is very short-sighted for traders to be bearish on gold and other raw commodities.
“I see any short-term weakness in gold and silver as buying opportunities,” she said. “If gold can get back above $1,950, that is a good sign this correction could be over. If gold gets back above $1,980, then $2,000 is just around the corner.
Schneider added that investors should pay attention to the physical gold market because that will reflect the geopolitical premium in the marketplace, as investors will want to have physical gold to protect their wealth.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
