A confluence of factors is driving the price higher

By Mark Huffman of ConsumerAffairs

• Traders are now pricing in about a 90% chance of a 25basispoint interest rate cut by the Federal Reserve in midSeptember, which diminishes yields on dollar assets and boosts golds appeal as a nonyielding haven.

• Economic instability, inflation fears, and geopolitical tensions, combined with political pressure on the Fed and diminishing confidence in dollarbased assets, are driving investors and central banks alike toward gold for stability.

• Unexpected tariff rulings, such as new duties on large gold bars, along with broader trade tensions and geopolitical threats, are spurring fresh interest in gold as a protective asset.
  

Gold prices started the holiday-shortened trading week by surging past $3,500 per ounce, reaching an all-time high. By the close of trading Tuesday, spot gold hovered around $3,496$3,509, while futures echoed the rally, signaling widespread investor confidence in the metal as a safe haven.

Whats behind the move? Markets are now pricing in a 90% chance of a 25basispoint cut at the Federal Reserves upcoming meeting on September 17, a shift that further diminishes return on treasury assets and elevates golds position as a non-yielding alternative.

This expectation-driven weakening of the U.S. dollar has made gold, which is priced in dollars, more affordable for foreign buyers, lifting demand and prices across global markets.

Flight to quality

Politically, President Trumps vocal criticism of the Federal Reserve, particularly his proposals to remove Fed officials, may have rattled investor confidence, raising concerns about central bank independence and long-run economic stewardship.

At the same time, inflation concerns, geopolitical flashpoints, and fragile markets are pushing investors and central banks to lean heavily into gold. Gold has now overtaken the euro as the worlds second-largest reserve asset, with large-scale accumulation seen in India, China, Turkey, and Poland.

A dramatic twist arrived when U.S. Customs unexpectedly ruled that one-kilo and 100-ounce gold bars would attract tariffs, potentially as high as 39%, a move that took markets by surprise and spurred a fresh surge in gold purchases. Additionally, persistent trade and geopolitical tensionsespecially involving Russia, China, and the Ukraine conflicthave exacerbated economic fears, further inflating safe-haven demand.

Golds rise so far in 2025, rising by roughly 30%35% year-to-date, stems from a potent blend of rate-cut speculation, safe-haven flows, central bank demand, and geopolitical jitters.

Analysts from major institutions like Goldman Sachs now speculate that gold could potentially reach $4,000 per ounce by mid2026, if current trends persist.

The Blue Oval takes the crown once more, far outpacing competitors

Ford Motor Company: Multiple Major Recalls

Total vehicles affected: ~1.1 million

Ford continues to lead the derby, issuing several large-scale recalls spanning multiple models and safety issues.

Exterior Lighting Failure 20242025 Mustang

• NHTSA ID: 25V546000

• Units affected: 105,441

• Hazard: Water intrusion may disable license plate, marker, and tail lights violating federal lighting standards.

• Fix: Dealers will seal seams and replace corroded modules if needed. Owner notices start Sept. 1, 2025.

Rear Brake Hose May Rupture 20152018 Ford Edge, 20162018 Lincoln MKX

• NHTSA ID: 25V544000

• Units affected: 499,129

• Hazard: Brake hose rupture could leak fluid, reducing stopping power.

• Fix: Remedy in development. Notices begin Sept. 8, 2025.

Inoperative Trailer Tail Lights 2025 Explorer & Aviator

• NHTSA ID: 25V543000

• Units affected: 213,121

• Hazard: Trailer tail lights may not illuminate, creating a crash risk.

• Fix: Dealers will replace or inspect modules. Interim notices Oct. 13, 2025.

Airbag May Tear 20242026 Ranger

• NHTSA ID: 25V541000

• Units affected: 100,900

• Hazard: Side curtain airbags may tear on deployment, failing ejection mitigation standards.

• Fix: Protective shields installed. Notices begin Sept. 8, 2025.

Chrysler (FCA US, LLC)

Total vehicles affected: 219,577

Rear Camera Failure 20192021 Ram ProMaster, 20192020 Dodge Journey

• NHTSA ID: 25V552000

• Units affected: 219,577

• Hazard: Cracks in microprocessor may cause rearview camera to fail, violating rear visibility rules.

• Fix: Dealers will replace cameras free of charge. Notices begin Sept. 30, 2025.

General Motors

Total vehicles affected: 23,656

Fuel Leak Fire Risk 20232026 Chevrolet Corvette

• NHTSA ID: 25V536000

• Units affected: 23,656

• Hazard: Fuel may spill into the filler pocket and ignite.

• Fix: Dealers will install a shield. Notices begin Oct. 6, 2025.

Bottom Line

Ford once again tops the derby with multiple large-scale recalls, hitting both family SUVs and sporty icons like the Mustang and Ranger. Chrysler and GM follow with camera and fire-related defects.

Drivers should check NHTSA.gov to see if their car is affected. Repairs are always free of charge.

In a hopeful sign for buyers, the median price dipped slightly

By Mark Huffman of ConsumerAffairs

• New home sales slowed in July 2025, falling to an annual rate of 652,000 units, down 0.6% from June and 8.2% lower than a year earlier.

• Inventory levels rose to 499,000 homes for sale, a 7.3% increase from July 2024, pushing supply to 9.2 monthsthe highest in more than a year.

• Prices declined as market pressures mounted, with the median sales price slipping to $403,800, nearly 6% below July 2024 levels.

The U.S. housing market continued to lose momentum in July, as new home sales slipped while inventories climbed to their highest levels in more than a year, according to data released jointly by the U.S. Census Bureau and the Department of Housing and Urban Development.

New single-family home sales in July 2025 fell to a seasonally adjusted annual rate of 652,000 units, down 0.6% from Junes revised pace of 656,000. Compared with the same month a year earlier, sales were off 8.2%, reflecting a broader slowdown in buyer demand amid elevated mortgage rates and affordability concerns.

While sales have softened, the number of new homes available on the market is climbing. At the end of July, there were 499,000 houses for sale, a 7.3% increase from July 2024.

Big rise in inventories

That level translates into a 9.2-month supply of homes at the current sales rate, up sharply from 7.9 months a year earlier. The supply measure, closely watched by economists as a gauge of market balance, has been trending higher throughout 2025, suggesting that builders are facing more difficulty moving inventory.

The combination of slower sales and rising inventory is putting pressure on prices. The median sales price of new houses sold in July fell to $403,800, down 0.8% from June and nearly 6% below the year-earlier level of $429,000. The average sales price also declined, dropping 3.6% month over month and 5% year over year to $487,300.

Market outlook

Analysts say the latest figures highlight the shifting dynamics in the housing market. While new home construction has boosted supply, affordability challenges and cautious buyers are limiting sales, leading to an accumulation of inventory. If the trend persists, price adjustments could deepen in the coming months, providing some relief for prospective buyers but straining homebuilders margins.

Many seniors are already cutting cut back on essentials like groceries and medications.

• Social Security benefits are expected to rise by about 2.7% in 2026, equating to roughly a $54 monthly boostbut rising Medicare costs threaten to eat most of it.

• Medicare PartB premiums are projected to climb 11.6%, from $185 to about $206.50/month, which alone could consume nearly 40% of the COLA increase.

• Broader healthcare expense hikesincluding rising PartD costs, deductibles, and outofpocket expensesare already pushing many seniors to cut back on essentials like groceries and medications.

Current projections indicate that Social Security recipients could receive a 2.7% cost-of-living adjustment (COLA) in 2026, slightly up from last years 2.5 %a modest gain that may nonetheless prove insufficient in the face of surging healthcare costs.

That projected increase would translate to approximately $54 more per month for an average beneficiary. However, as Medicare PartB premiums are set to rise 11.6%, increasing by $21.50/month to $206.50, Social Security checks may only gain $3233 neterasing nearly 40% of that new income.

And PartB premiums arent the only concern. Medicare PartD costs are also expected to increasearound 6% in premiumsand deductibles and other outofpocket costs, such as those for medications or services, are also on the rise. Moreover, the PartB deductible is projected to jump from $257 to $288, an 11.2% increase in itself, according toInvestopedia.

Effects are being felt

The rising burden is already having real effects: A recent nationwide survey found over half of retirees are cutting discretionary spending, and notably, more than one-third are forced to trim essentials like groceries and medical careall while COLA increases lag behind rising inflation and healthcare costs.

Experts warn that the disconnect between broad inflation measures (like the CPIW, which drives COLA) and the actual spending patterns of retireesespecially on healthcaremeans that many seniors will see little to no real improvement in their budgets in 2026, Barron'srecently reported.

Whats at stake?

Even with a COLA bump, rising medical costsespecially those automatically deducted from benefitsmean that many retirees will struggle to feel any real financial benefit next year. As the mismatch between inflation measures and seniors actual spending grows, advocates are pushing for a revision of how COLA is calculated or better indexing to retirees cost burdensparticularly healthcare.

Senior advocacy groups say none of this should surprise anyone.
Social Security checks arent keeping up with inflation. If four in five seniors think inflation was higher than the government reported in 2024, maybe we should stop questioning their experiences and start questioning why the COLA is failing to measure them, saidShannon Benton, executive director of the Senior Citizens League.