Finimize - ✨ Million-dollar baby

What’s going on here?

A bar of gold now goes for a cool $1 million, with the latest rally pushing its price above the seven-digit threshold for the first time ever.

What does this mean?

Gold has been white-hot lately. Investors have taken a new shine to it as some of the world’s major central banks have begun cutting interest rates, sending bond yields lower. That’s added to the allure of the precious metal, which doesn’t generate any income but is seen as a secure store of value. In fact, its perceived safe-haven status has made gold especially fashionable now, as recession worries and escalating geopolitical tensions have folk waiting for a heavy shoe to fall. Combined with slimmer bond yields, those fears have helped drive gold’s price up by more than 20% this year, to a record of $2,522 per troy ounce on Tuesday.

Why should I care?

Zooming in: Good as gold.

Traders are becoming increasingly certain that the Federal Reserve will begin cutting interest rates in September. That’s sent the dollar to its weakest level against many of its peers this year, since lower rates make a currency less attractive to overseas savers and investors. And those cheaper Benjamins have been good for gold. See, like most commodities, the yellow metal is priced in US dollars. So when the greenback weakens, gold goes on sale across much of the world – which can increase demand and push up its price.

The bigger picture: Staying gold.

Rising gold prices and falling interest rates show that traditional drivers, like bond yields, are falling back into place again. Earlier this year, the metal’s price went up even as yields increased, which, understandably, caught people by surprise. But that was mainly because central banks – especially in emerging markets – were stockpiling those 400-ounce bars as protection against the impacts of inflation, and as a way to diversify their reserves away from the dollar.

What’s going on here?

High-end iPhones will be made in India for the first time, giving the country a bigger slice of the – ahem – Apple pie.

What does this mean?

Apple has been cranking up production in India for a while, with the country already churning out roughly 14% of its iPhones. Now, the company’s launching its fourth plant in the nation, designed to assemble the most advanced (and most expensive) iPhone Pro and Pro Max models. The fresh factory floor is a win for India’s manufacturing sector. Plus, it’ll let Apple pare the prices of its Pro models by up to 10% there – great news for the country’s growing and increasingly affluent middle class.

Why should I care?

Zooming in: India’s on a roll.

India’s economy has been running at top speed and doesn’t look the least bit winded. The country’s young and growing workforce is helping it to build momentum, while much of the rest of the world is seeing its population age and shrink. Plus, India has an expanding crowd of retail investors and a government aiming to make business-friendly reforms. That’s some potent chai: Bloomberg estimates that by 2028, India will overtake China as the biggest contributor to global economic growth. This could all be very good for the country’s stocks. Problem is, those shares are already among the priciest in Asia – and that’s got some folks feeling wary.

The bigger picture: The big China bypass.

China’s pain is other countries’ gain. Rising tensions between the US and the Red Dragon are helping other developing nations grow, as companies seek to swerve the trade barriers between the world’s two biggest economies and build their supply chains elsewhere. It’s not just India winning out, either: America’s neighbor Mexico has also seen a strong boost, as firms seek friendlier shores. And with the risk of stiffer tariffs to come, those ties could become even more amicable.