Chair, President and CEO Glen Messina stated that the company experienced solid underlying business momentum, with double-digit growth in revenue, originations volume, and servicing balances despite market challenges.
"Gold volume is a useful proxy for how clients behave when risk is front of mind. In periods of heightened volatility, trading activity often concentrates in a small number of highly liquid markets. Clients value execution quality, and the ability to adjust exposure quickly, which helps explain why gold continues to account for a large share of client activity on our platform."
Warsh argued during his testimony that the Fed became too dependent on extraordinary stimulus tools and blurred the line between monetary policy and market support. He specifically called for a smaller balance sheet and a return to what he described as the Fed's 'core mandate.' That's a fancy way of saying he wants the Fed to stop acting like Wall Street's emergency response team every time volatility spikes.
The failure of peace talks between the United States and Iran and renewed tensions surrounding the Strait of Hormuz have strengthened demand for the US dollar as a safe haven, putting direct pressure on silver.
Take that flow out of the system and Brent doesn't move five or ten dollars, it moves structurally higher. A spike toward $120 or beyond becomes realistic very quickly, and that resets inflation expectations globally.