Hello Capitalists,

Here’s what you need to be paying attention to today:

• Trump cranks up tariffs on gold bars

• Trump names his pick for his new man at the Fed

• The SEC vs Ripple case is finally over

• Open AI releases Chat GPT-5 to the world

Today’s markets:

• DOW: 44183.07 - (⬇️0.49) 🔴

• S&P: 6386.40 - (⬆️0.73) ✅

• NASDAQ: 212425.00 - (⬆️0.86) ✅

• CBOE VIX Volatility Index: $15.58 (⬇️0.98) ⚠️⬇️

Trump raises tariffs on imported Gold Bars, Gold futures skyrocket

The U.S. has imposed tariffs on one-kilogram and 100-ounce gold bars, disrupting global bullion markets and sending New York gold futures to record highs.

• The U.S. Customs and Border Protection agency clarified that one-kilogram and 100-ounce gold bars are subject to tariffs, reversing industry expectations of an exemption, causing New York gold futures to surge to a record high.

• The tariffs, enacted under President Donald Trump’s reciprocal trade policies, threaten to disrupt gold shipments from key hubs like Switzerland, London, and Hong Kong, with Switzerland facing a 39% tariff rate.

• The decision, detailed in a July 31 letter, classifies these gold bars as “semi-manufactured” under customs code 7108.13.5500, subjecting them to levies, while uncertainty remains about whether 400-ounce bars traded in London will be affected.

• The move has led to a price spike in New York, with traders and refiners pausing shipments to the U.S. due to lack of clarity, potentially straining U.S. refining capacity and widening the gap between futures and spot prices.

Quote of the Day:

Trump announces his pick for the Fed Governors vacancy

President Donald Trump announced Thursday he will nominate Stephen Miran, chair of the Council of Economic Advisers, to serve as a Federal Reserve governor.

• President Trump nominated Stephen Miran, to replace Adriana Kugler, who is resigning early to return to Georgetown University.

• Miran’s appointment, subject to Senate confirmation, is temporary, filling Kugler’s term until January 31, 2026, while Trump searches for a permanent replacement and a new Fed chair to succeed Jerome Powell, whose term ends in May 2026.

• Miran, a critic of the Fed’s past stimulus measures and co-author of the “Mar-A-Lago Accord” advocating dollar devaluation, aligns with Trump’s push for lower interest rates and could serve as a dissenting voice against Powell.

• The nomination comes amid speculation of Trump appointing a “shadow chair” to challenge Powell, with Miran’s role potentially influencing monetary policy and financial regulation, pending Senate approval expected in September.

Mining stock surges after Q2 results after huge DoD contract

MP Materials' stock surged Friday after the U.S. rare earth miner reported a narrowed second-quarter loss in Q2 earnings.

• Stock Surge and Financial Performance: MP Materials' shares rose more than 6% in morning trading after reporting a 24% reduction in adjusted loss, posting $21.37 million or 13 cents per share, compared to $28 million or 17 cents per share a year ago.

• Record Production: The company achieved a record 597 metric tons of neodymium-praseodymium (NdPr) oxide, a 119% increase from the previous year, critical for magnets used in electric vehicles, robotics, and electronics.

• Sales Growth: Sales jumped 84% to $57.4 million from $31.3 million in Q2 2024, reflecting strong demand and operational improvements at its Mountain Pass, California mine.

• Government Support: A multibillion-dollar Defense Department deal, including a $400 million equity stake, guarantees a $110 per kilogram floor price for NdPr, positioning MP Materials to expand domestic rare earth production and challenge China's market dominance.

Ripple’s XRP lawsuit is finally closed after the SEC abandons its case

The U.S. Securities and Exchange Commission and Ripple Labs Inc. bringing to an end their four-year legal battle over XRP token sales.

• The SEC and Ripple Labs Inc. concluded their legal dispute by jointly filing to dismiss their respective appeals in the U.S. Court of Appeals for the Second Circuit, with each party covering its own legal costs.

• The resolution finalizes a June agreement where Ripple agreed to pay a $125 million civil penalty, now set to be transferred to the U.S. Treasury from escrow, with a permanent injunction remaining on Ripple’s institutional XRP sales.

• The 2023 court ruling, upheld by this dismissal, determined that XRP sales on public exchanges are not securities, while institutional sales violate securities laws, setting a precedent for future crypto regulation.

• Following the announcement, XRP’s price jumped over 10% to $3.31 within 24 hours, reflecting market optimism about the resolution and reduced regulatory uncertainty for Ripple.

Duolingo soars after huge Q2 earnings win driven by AI implementation

Economist Steve Moore claimed Thursday that the Biden administration overestimated job growth by 1.5 million jobs over its final two years, presenting unpublished Census Bureau data in the Oval Office to support President Donald Trump's decision to fire the head of the Bureau of Labor Statistics.

• Moore supported President Trump's firing of Bureau of Labor Statistics (BLS) Commissioner Erika McEntarfer, citing a "gigantic error" in job creation estimates as justification.

• The firing followed a weak July jobs report showing only 73,000 jobs added and significant downward revisions to prior months, prompting Trump to claim the numbers were "rigged" to favor Democrats.

Chat GPT-5 launches to all users and CEO Altman isnt worried about the cost

OpenAI launched its most advanced AI model, GPT-5 on Thursday making the model's release to all ChatGPT users.

• GPT-5 Launch: OpenAI released GPT-5, its latest and most advanced large-scale AI model, on Thursday, making it available to all ChatGPT users, including those on the free tier, marking the first time free users can access a reasoning model that "thinks" before responding.

• Financial Strategy: CEO Sam Altman told CNBC’s “Squawk Box” that OpenAI is willing to operate at a loss for an extended period to stay ahead in AI development, emphasizing the model’s continuous improvement as a priority despite the company’s reported $5 billion loss last year.

• Enhanced Capabilities: GPT-5 is described as smarter, faster, and more useful, particularly in writing, coding, and healthcare, with features like "vibe coding" that allow users to generate software, such as a French-learning app, from simple prompts in seconds.

• Market Impact: The model’s rollout to Microsoft products, including Microsoft 365 Copilot and Azure AI Foundry, underscores OpenAI’s growing influence, with the company projecting 700 million weekly active ChatGPT users and a potential $500 billion valuation in stock sale talks.