- The dollar finally sees some selling…
- The Bank of Canada cuts rates again!
Good day… And a Tub Thumpin’ Thursday to one and all! Another night of no baseball and I’m going through withdrawal… In about 10 days that will be the scenario until spring, so I had better get used to it fast! My adoptive NFL team, the Chiefs (They are a Missouri team!) traded for a great wide receiver yesterday, now the team is more of a threat to other teams than they were before the trade. Good friend, Rick B. Stopped by to say hi yesterday late afternoon… I had just come inside from sitting outside and reading, when He texted me and said he was stopping by soon… Michael Murphey greets me this morning with his song: Wildfire…
Well…. The great move by the U.S. dollar the previous night was almost wiped out in the U.S. session yesterday, leaving the BBDXY plus 1 index point on the day… I had wondered when traders who watch things like the RSI were going to begin to act on the dollar’s overbought status…. And the short paper traders showed up at the COMEX with arms full of short Gold & Silver trades yesterday… They came back with a vengeance yesterday, and brought Gold down by $33, and Silver down by $1.15…. Gold Closed at $2,715.40, and Silver closed at $33.76… TSK, TSK, Tsk, those darn short paper traders doing the dirty deed, done dirt cheap (AC/DC) by the truck load yesterday…
All they did was make it less expensive to back up the truck for Gold & Silver. They created an excellent buying opportunity…..
And while we’re talking about buying opportunities… The dollar rally is giving currency buyers an excellent buying opportunity… As my former colleague, Ty Keough used to tell his clients… “If the dollar is strong, that means you can buy more of the currency that before.” On the EverBank World Markets Trading Desk, I sat right in the middle of all the people on the desk, so I could hear their conversations with clients… This after I had stopped taking calls… So, I heard them all….
The price of Oil rallied again with the price of Oil ending the day trading with a $71 handle… Still range bound, and subject to the whims of Oil traders who can’t seem to get their stuff together, if you ask me… And after trading briefly with a 4.25% yield yesterday, some buyers showed up and brought the 10-year Treasury’s yield down by 2 Basis Points to end the day at 4.22%…
In the overnight markets last night… The dollar got sold last night, as its overbought status came into play… The BBDXY lost 2.5 index points overnight, and starts today’s trading at 1,257… The euro has bumped back to 1.08 and all the rest of the currencies reflect a similar bump higher VS the dollar this morning… Seems that most writers this morning are talking about how the markets are fearing a “red sweep” in the elections in less than two weeks…. And that means a weaker dollar…
Gold & Silver put yesterday’s engineered takedown by the short paper traders to bed, and started another strong run higher this morning… Gold is up $23, and Silver is up 32-cents to start the day today… These days, it so darn easy to pick out a day when the short paper traders hold the upper hand, as the damage is done in one day, and the then the next day, Gold & Silver get right back to what they were doing before the engineered takedown… Rally…
The price of Oil remained in the $71 handle overnight, and the 10-year Treasury saw some buying as the yield rallied to 4.19%… Like I said above, this bond saw 4.25% briefly yesterday, and since then it has seen its yield slide…
The Bank of Canada did it again yesterday… They cut rates again… This time though they opted to cut rates 50 Basis Points… The Bank of Canada started their internal interest rate with a quarter percentage-point reduction in June. It cut again by 25 basis points at each meeting in July and September. The next and final rate decision for this year is on Dec. 11, when some economists already project another 50 basis-point cut.
The BOC is hell-bent, and whiskey bound to let everyone know that they defeated inflation and it’s time now to rid the economy of high interest rates…. Yeah, as if 5% was a “high rate”…. I used to think that the BOC was a prudent Central Bank, but that thought was thrown to the curb years ago, when they cut rates to near zero… And then left them there for some time…. Sound familiar? Yeah, it’s the same scenario for the Fed/ Cabal /Cartel…
You may recall me telling you that the BRICS were have a summit this week, a couple of weeks ago… I found this from ; The BRICS summit is underway in Russia – Sherwood News
“The group, which often presents itself as a counterweight to the Western-dominated world order, now accounts for more than one-third of global economic output (PPP adjusted) — a figure that’s only expected to rise in the coming years. The ascendence of the BRICS has been well telegraphed, with the term originally coined by a Goldman Sachs economist way back in 2001, but the group didn’t officially meet at a summit until 2009. By the end of the decade, BRICS’ share of global GDP is expected to rise to nearly 40%.
So, what do the BRICS want? Although the group’s actual structure is informal, one of the group’s key goals is de-dollarization, or pivoting away from the US dollar as the main currency for international trade. For countries that are heavily subjected to tough Western economic sanctions, like China and Russia, this would help capital flow free of US pressure and influence. So far, practical changes have been relatively insignificant: China now has an alternative to the SWIFT payment system (though it’s lightly used) and some countries have switched their currency reserves from dollars to gold.”
Chuck again… You may recall me telling you that there was a rumor going around that the BRICs would introduce their new common currency that was backed by Gold… It doesn’t appear to be in play at this conference, maybe next year, it will be ready for Prime Time…
But when the BRICS do announce that, they will immediately gain attention to their currency, and take the spotlight away from the dollar, and onto their new currency….
I read an article by Tom Dyson yesterday of the Bonner private research group where he was telling his dear readers not to sell their metals at currency prices… He reasoned that today’s prices will be looked at like the $1,800 Gold was last year at this time… And if I could be so bold to add something to the “do not sell” advice, it is that Gold is a store of wealth, and should not be sold, but instead handed down,….
At least that’s what they do in the East… It’s not a way that we do things here in the West, but that doesn’t mean we can’t change! I know that I sure have changed my outlook for Gold through the years… I’m just saying…
Well, a hawkish sounding Fed/ Cabal/ Cartel really has the dollar pushing new current cycle highs, and ignoring its overbought status… The IMF isn’t helping things any… In a recent report, the IMF said that the U.S. economy should be growing nicely in 2025, while they dissed the European and Asian economies, downgrading their growth figures that printed previously…
Now, in my humble country boy opinion, I’ll give them the idea that the U.S. would outgrow Europe an Asia next year, but… I’ll argue with the IMF to the grave about how the U.S. economy would grow nicely in 2025… All the data I’m reporting each day doesn’t paint a picture for the economy like that…. I’m just saying…
Before we head to the Big Finish today, I wanted to mention that I saw that Fernando Valenzuela died the other day.. He was only 63! . Fernando was a cult hero and pitched for the Dodgers (And Cardinals ) He threw a screwball, which was an old timer’s pitch, but brought him to the Majors… RIP Fernando!
The U.S. Data Cupboard has the Weekly Initial Jobless Claims for us today… I’m still waiting for all the business closing, and layoffs to show up here… And if they don’t, then this data set is manipulated too! And tomorrow, we’ll see the color of the Sept. Durable Goods Orders which I’m going to say they’ll be negative for the month… But that’s tomorrow, so we’ll talk about it on Monday next week…
To recap… The dollar’s overnight rally was almost turned around in the U.S. Session yesterday, with the BBDXY ekeing out a 1 index point gain on the day… The BRICS are meeting as Chuck writes today, and it appears they will disappoint us with no mention of their Gold backed Common Currency introduction… And Chuck talks about the dollar rally, and what’s causing it…
For What It’s Worth…. I found this on kitco.com and it’s about how China drives the Gold market these days, and it can be found here: China’s influence in the gold market is only just beginning – LBMA panel | Kitco News
Or, here’s your snippet: “China has played an unprecedented role in gold’s rally to record highs this year, and while the market may have cooled in the second half of the year, investors should not underestimate the Asian giant’s impact on precious metals.
China’s influence in the gold market will only continue to grow as its economy evolves, according to a panel discussion at the London Bullion Market Association’s 2024 Precious Metals Conference.
“From a consumption perspective, the continued growth of China’s economy and its large, growing consumer group will create a solid foundation for China’s gold market,” said Dr. Zenghui, Vice President of the Shanghai Gold Exchange (SGE), during the discussion.
Zenghui also noted that gold demand is evolving from basic consumption into an important investment asset within the Chinese economy. He explained that the SGE is in the process of streamlining its membership procedures, making it easier for international companies to tap into China’s gold market.
“I believe there will be more trading strategies and a larger trading market,” Zenghui said. “This is a very exciting opportunity, and I warmly welcome global institutions to join our market.”
John Levin, Head of Metal Sales and Trading for Asia-Pacific at TD Securities, joked that when Zheng said his company is small, he is not exaggerating. He explained that it is difficult for Western investors to comprehend just how large the precious metals market is in China. He emphasized that the size of the country’s market is why it remains a major global influence.”
Chuck again…. Yes, as I wrote a couple of months ago, China has taken over as the main source of pricing for Gold from the West… This is an interesting article, because it shows how China is a major player in Gold…
Market Prices 10/24/2024: American Style: A$ .6654, kiwi .6029, C$ .7237, euro 1.0803, sterling 1.2979, Swiss $1.1554, European Style: rand 17.6755, krone 10.9427, SEK 10.5738, forint 373.08, zloty 4.0231, koruna 23.3589, RUB 96.93, yen 151.96, sing 1.3194, HKD 7.7704, INR 84.07, China 7.1147, peso 19.78, BRL 5.6910, BBDXY 1,257.49, Dollar Index 104.34, Oil $71.10, 10-year 4.19%, Silver $34.08, Platinum $1,085.00, Palladium $1,130.00, Copper $4.38, and Gold… $2,738.59
That’s it for today and this week… Well, I made a week all by myself… I know the women on the old trading desk would always be concerned because their thoughts were that a man can’t take care of himself… Well, I always proved them wrong then, and would still be proving them wrong now…. My beloved Mizzou Tigers travel to Tuscaloosa Ala. To play the vaunted Alabama Crimson tide this Saturday… It’s the SEC game of the week on ABC, so this is your opportunity to get back into the playoff picture, Mizzou, don’t blow it! Go Tigers! Our Blues play tonight in Toronto… Go Blues! Steve Winwood takes us to the finish line today with his song: Roll With It…. I hope you have a Tub Thumpin’ Thursday today, and please Be Good To Youself!
Chuck Butler