Today’s Big Story

China’s Gold Rush

The price of gold has reached its highest levels as Chinese buy the metal at a record pace

As the saying goes, “it’s as good as gold.” The simple idiom implies that gold has always been (and will be) valuable. Historically, the precious metal has been a safe and stable investment that can protect you in times of economic and geopolitical uncertainty.

The metal's rarity and physical properties give it its inherent value besides being a shiny, coveted metal. Bullion is also used by investors as a hedge against market and global risk (and it's part of the reason Costco started selling gold bars last year). According to the New York Times, gold has soared in price in response to Russia’s invasion of Ukraine and the war in Gaza. But gold’s climb to highs above $2,400 per ounce has proved more resilient, and lasted longer, because of China.

The country’s gold market, which accounts for about a fifth of global sales, has typically attracted an older crowd. But, these days, Chinese gold shops regularly serve customers in their 20s. Even though most don’t have a lot of spare cash. The youth-unemployment rate in cities is about 15%. Many companies are cutting salaries. So young people are hoping to make the most of what little savings they have. And they’re not interested in traditional investments when the stock market is slumping and housing prices have fallen for ten months in a row.

The Wall Street Journal reports that Chinese buyers’ purchase of gold bars and coins rose 26.77% to 106.32 tons, amounting to around a third of total consumption. And it’s not just retail shoppers, futures traders and institutional investors are also snapping up gold bullion. China’s central bank, like its global peers, has been loading up for 17 consecutive months, with a total gold reserve of 2,262.47 tons at the end of March.

Did you know that gold bullion still makes up a large portion of global central bank reserves? The United States leads the world's official bullion holdings, with 69.7% of reserves (which is 8,133 tons). But last year, China outpaced all central banks, adding 225 tons of gold to its reserves. That was the highest increase since 1977. Some see it as a sign China is safeguarding against sanctions, should they decide to invade Taiwan. But the gold buying strategy also fits well with its goal to diversify its assets alongside other BRICS countries (Brazil, Russia, India, and South Africa), who are eyeing global economic dominance by 2050.

Israel Warns Palestinians to Evacuate Rafah

Hamas says latest cease-fire talks have ended

The Israeli army on Monday ordered tens of thousands of people in the southern city of Rafah in the Gaza Strip to begin evacuating, signaling that a long-promised ground invasion could be imminent. Israel has described Rafah as the last significant Hamas stronghold after seven months of war, and its leaders have repeatedly said they need to carry out a ground invasion to defeat the Islamic militant group.

Israel’s determination to invade Rafah remains a sticking point in cease-fire negotiations that appear to be at an impasse, with a Hamas delegation leaving the ongoing negotiations in Cairo to consult its leadership in Qatar. Prime Minister Netanyahu, under pressure from hard-liners in his government, continued to lower expectations for a cease-fire deal, calling the key Hamas demands “extreme”—including the withdrawal of Israel forces from Gaza and an end to the war.

Meanwhile, the main United Nations relief agency for Palestinians said it’s “not evacuating” eastern Rafah after Israel’s military urged residents to leave parts of Gaza's southernmost city. In a statement early Monday, UNRWA said it “will maintain a presence in Rafah as long as possible and will continue providing lifesaving aid to people.” Israel's Defense Forces posted to social media that its forces have expanded the humanitarian area in Al Mawasi “to accommodate the increased levels of aid flowing into Gaza.”

40 Million at Risk of Severe Storms

The multiday severe weather threat could continue tornado streak through this week

A significant severe storm outbreak is forecasted for the Plains, Central U.S. and Ohio River Valley starting today, through at least Wednesday. And more than 40 million Americans are at risk—that’s how massive this surge of bad weather is.

According to Axios, the greatest risk may come on Monday, when cooler, much drier air from the west clashes with a fast-moving flow of warm, moist air flowing north from the Gulf of Mexico and spreading across much of Texas, Oklahoma, Kansas and Nebraska. The storms could spawn “intense tornadoes,” the National Weather Service warns, along with high winds, large, damaging hail and flooding.

The tornado warnings come after a busy April, during which more than 300 tornadoes were reported across the country—the second-highest month on record. The twisters, some intense and deadly, swarmed the central states and formed as far north as Alaska. The topic of how climate change is affecting tornadoes is one of active research in the scientific community, though there is emerging agreement around a few points. For example, changes in the climate has been shown to affect the atmospheric conditions that give rise to severe thunderstorms, in particular by increasing atmospheric instability.

The Rise of AI Influencers

They’re becoming so popular, it’s becoming a problem … or is it?

The rise of truly powerful and accessible generative artificial intelligence (AI) is starting to shake up the social media landscape for everyone from brands and content creators to their followers. But business is booming. In fact, in less than a decade, the so-called “digital human economy” is projected to become a $125 billion market, according to a report from research firm Gartner.

Forbes says this is “not only troubling in terms of what content can be generated or spread but is also an existential threat to human creators as well.” The solution to this problem lies in what blockchain technology can offer in terms of verified human digital identities.

Then again, maybe it doesn’t even matter if the accounts feature figments of a machined imagination. After all, how real are the lives depicted on social media anyway? A new study has found that Gen Z may value AI and authenticity on social media differently than older generations. Mashable reports that about a quarter of respondents said they would be "indifferent" to it, and 46% said they would be more interested in a brand that worked with an influencer generated with AI.

Flowers Designed to Impress Mom

Make her day with a truly special arrangement

UrbanStems has the flowers your mom deserves. The modern brand offers the best of both worlds: Arrangements that are high on taste while prioritizing the freshest flowers. All for incredibly reasonable prices. How do they do it? Well, they source directly from the farmers—no middlemen, no local florists and no cutting corners. Their in-house floral designers have crafted some truly stunning bouquets that will suit any mother's taste. What's more, you can get 15% off when you use our exclusive code, VALETMOM15.

It’s okay to say “no”.