- Our opposites scenario plays out on Tuesday
- A correction ahead for the metals? Probably not…
Good Day… And a Wonderful Wednesday to you! I forgot to mention to you all that there will be no Pfennig tomorrow… I have two, count ’em, two doctor appts, the first is with my Oncologist, who will not be happy that I won’t be able to get my usual monthly infusion this time because of me being on steroids… And the second one is with the doctor that put the Watchman device on my heart last year… The need to make sure that there are no leaks… The Allman Brothers greets me this morning with their live version of the song: One Way Out…
Well, my suspicions were correct that the BLS did revise their jobs numbers for the last year downward by 911,000 not 1,000,000 as was rumored… This is for jobs the BLS say were created between April 2024 and March 2025.. And guess what the dollar did? It rallied! No kidding, I wouldn’t kid you, on something like that, thus proving once again that we like in a time of Opposites… The new BLS chief jefe is still to be confirmed by Congress, but I’m sure he wasn’t as pleased about potentially getting the job, as before… Just for grins, I went to the BLS site for Birth/Death jobs and since March of this year the BLS has already added 963,000 jobs out of thin air that next year, will be part of the revision again… I’m just saying…
So, the BBDXY saw a gain of 3 index points yesterday to end the day at 1,201… And Gold, which immediately rallied on the jobs revision, saw the SPT’s take away Gold’s gains on the day, and Gold ended up down $11 at $3,625… Silver was in the same boat as Gold, and saw the SPT’s take away Silver’s shine for the day by 44-cents to end the day at $40.92… The SPT’s can’t stand to see Silver above $41… And they will continue to be a thorn in the side of the Gold & Silver Bugs…
I don’t like the fact that Kitco.com won’t call the selling in Gold & Silver for what it really is… Short Paper Traders… Instead, they call it “mild profit taking” after Gold reached a new all-time high… But to each his own, right? But to call a $11 swing “mild profit taking” is stretching the cord a bit, don’t you agree?
The price of Oil bumped higher again, with this back and forth for the price of Oil, this is giving me a rash… Oil ended the day with a $63 handle… And the 10-year Treasury saw more selling yesterday as the yield on the bond rose from 4.04% in the morning to 4.07% to end the day…
In the overnight markets last night… Well, when I retired last night, the dollar was getting sold and the BBDXY was down to 1,1997, and I thought “Well, the foreign markets at least see the U.S. economy is shakier than their counterparts in the U.S.”. But upon waking up this morning, (which wasn’t easily done I might add) I see where that thought was so wrong it was almost right! The Dollar is flat to start our day today with the BBDXY at 1,201… The euro has slipped back below the 1.17 hqndle, and the loftiness of the currencies in recent days has just about abated…
Gold is up $19 to start our day today, and Silver is back above $41 at $41.06, up 14-cents to start our Wonderful Wednesday… Here’s a little ditty I found that should help Gold a bit… Poland’s Central Bank just announced it is planning to increase gold’s share of its total reserves from the current 20% to 30%. That comes after being the No.1 central bank gold buyer in 2024 (89.5 Tonnes).
The appetite for physical Gold isn’t being sated by Central Banks around the world, if only the U.S. investor would realize what’s going on and start buying Gold instead of the stocks, bonds, and mutual funds, or whatever the latest “phony favorite investment of the day is”… Gold would then be rallying every single day…
The price of Oil remained trading with a $63 handle overnight, and the 10-year Treasury is stuck around 4.07% to start our day today.
And speaking of the 10-year Treasury, I went back a found where the yield was on this bond at the turn of the year (Jan) at it was 4.80%… But back then the markets and its participants were of the thought that the U.S. economy was on the right tracks… Of course, they could have read the Pfennig and known that wasn’t the case, but I digress… The bond boys don’t believe in any magical economic miracles on the horizon so they have taken to believe the Fed Heads this time, that they will be cutting rates next week, and therefore the economy isn’t doing well… And this works for the U.S. Treasury since the new bonds they will have to be issuing soon, won’t have as high of a yield on them, thus reducing the debt servicing costs… (interest rate)
Something that I found quite interesting in yesterday’s Bill Bonner’s Private Research newsletter… First of all, do you remember that 2–3-year period in the U.S. right after the Covid debacle, when the period of time was referred to as “the Great Resignation”? Yeah, that was when after being at home during the Covid debacle, people decided that they didn’t like their jobs any longer… and quit… Well, yesterday, Bill Bonner told me that for the first time since April 2021, The U.S. has more Unemployed workers than Job Openings… Uh-oh! For those of you keeping score at home, The Total Unemployed in the U.S. is 7.24 Million, VS 7.18 Million Job Openings… How will the future participants of Social Security expect to receive their funds when there’s not enough workers to support the system? Aye, Aye, Aye…
And I was reading an article on Moneymetals.com about how we shouldn’t worry about a correction in the metals… here’s a brief snippet about something I mentioned the other day regarding Gold being in the overbought side of the RSI… “Overbought readings should be ignored, as they are completely normal during strong uptrends and should actually be welcomed as signs of strength and momentum. That’s why I’m not at all concerned about the current overbought readings in gold and silver, unlike the Chicken Littles who are panicking and calling for a correction.”
Chuck again… Again, that’s one person’s viewpoint… But if I hadn’t experienced a collapse of the Silver price 20 or so years ago, I would agree wholeheartedly… But in this case, I’m just throwing it out there to see if it sticks to the wall… Shoot Rudy, I recall a time when at EverBank, that Gold was seeing a correction and was heading toward $750, even a well-known analyst called that Gold would fall to $700… Well, it didn’t even fall below $800, but still the correction was in, and then Gold had to work very hard to get back to $1,000.. The rest is history… Gold is $3,600 as I write…
Well, the FOMC meets next Wednesday the 17th… What will it be boys? a 25 or 50 Basis Point cut? I guess we have a week to wait, eh? With inflation rising again, even with the hedonic adjustments, I hope Fed/ Cabal/ Cartel chief, Jerome Powell would stick to his guns and not cut rates… Because I’m deathly afraid of what the tariffs will do to the inflation rate, if given the chance to be implemented by the Courts… Powell could really show his mettle if he kept rates unchanged, don’t you think? Not to be cow-towed by the POTUS…
Right now there are odds of 88% that the rate cut will only be 25 Basis Points, and only 12% odds that the rate cut will be 50 Basis Points… So, now you know…
I know, the labor market is shot… and that it needs a rate cut, but… at what cost? If inflation takes off because of the tariffs like I think it will, then what good will it be to have lower interest rates? Your job? It may be eliminated because of inflation, ever think of that?
The U.S. Data Cupboard today has the PPI (wholesale inflation) and I believe we’ll see it rise to 3.3% annually.. .That means that consumer inflation will be heading higher and we’ll get the opportunity to see that the color of the STUPID CPI is tomorrow… I know I’ve spent a lot of time talking about inflation this morning… Because I believe in my heart of hearts that it’s coming home to spread like a wildfire in the near future… And therefore… Got Gold?
To recap… The BLS did indeed revise their previous claims that the jobs market was strong by 911,000 jobs last year… it was over 800,000 the year before that and a lot the year before that… And at no time has the dollar gotten treated like a rented mule (no animals were hurt here) over these revisions… The dollar had rallied each month when the jobs numbers were so lofty… But when it comes to reversing that bullish trading in the dollar, crickets… the dollar rallied on the revision, Gold saw the SPTS take its daily gains away, and Chuck spends a tone of time on inflation today… Are you ready for it? Got Gold?
For What It’s Worth… The good folks at GATA sent me this article that they pulled from the Economic Times site… It’s a theory of what the U.S. is going to do to address the astronomical debt that it has, and it can be found here: Putin’s advisor warns of US conspiracy to wipe out $35 trillion debt using crypto and gold market – The Economic Times
Or, here’s your snippet: “Anton Kobyakov, a senior Russian advisor to President Vladimir Putin, has alleged that the United States is orchestrating a scheme to offload its $35 trillion national debt by leveraging cryptocurrencies and gold. Kobyakov stated that Washington intends to “rewrite the rules” of these markets, positioning them as alternatives to the traditional global currency system. He gave these remarks during the Eastern Economic Forum, which was held in Vladivostok, Russia, with the purpose of encouraging foreign investment in the Russian Far East.
The United States’ national debt has surpassed $35 trillion, making it the largest in the world. This figure represents the total amount the federal government owes to creditors, including foreign governments, institutional investors, and US citizens through Treasury securities. The debt has been driven by decades of budget deficits, large-scale stimulus packages, military spending, and entitlement obligations such as Social Security and Medicare.
In a recent statement posted by RT’s X account, Kobyakov said, “The US is now trying to rewrite the rules of the gold and cryptocurrency markets. Remember the size of their debt, 35 trillion dollars. These two sectors are essentially alternatives to the traditional global currency system.” He further asserted, “Washington’s actions in this area clearly highlight one of its main goals to urgently address the declining trust in the dollar.”
Chuck again… Well, at least the Gov’t see’s the danger in the loss of the Reserve Status for the dollar, but I’m not really sure this is the way to go about saving that… I would go about cutting deficit spending, first, and foremost… Stop getting involved in everyone else’s wars, and bring our soldiers home… Then there’s a laundry list of dirty shirts that need to be addressed in our Gov’t, and Congress, and Courts… But that’s a discussion for another day…
Market Prices 9/10/2025: American Style: A$.6611, kiwi .5943, C$ .7216, euro 1.1699, sterling 1.3531, Swiss $1.2531, European Style: rand 17.5449, krone 9.9223, SEK 9.3619, forint 336.19, zloty 3.6423, koruna 20.8479, RUB 84.67, yen 147.52, sing 1.2829, HKD 7.7900, INR 88.10, China 7.1233, peso 18.62, BRL 5.4364, BBDXY 1,201, Dollar Index 97.82, Oil $63.29, 10-year 4.07%, Silver $41.06, Platinum $1,399.00, Palladium $1,199.00, Copper $4.59, and Gold… $3,644.
That’s it for today… And this week… sorry about tomorrow, but doctors appts take the precedence over writing… Sort of like Discretion over Valor… My beloved Cardinals played late in Seattle again last night and lost once again. If the Cardinals were a hockey team, I would tell them to shine up their golf clubs, because that’s where they will be when the regular season ends in a few weeks… UGH! The beginning of the year showed such a promise too… double UGH! My beloved Mizzou Tigers take on U of Louisiana on Saturday… Could be a “trap game” for my Tigers, let’s hope not! The Moody Blues take us to the finish line today with their great song: Driftwood… I hope you have a Wonderful Wednesday today, and please Be Good To Yourself!
Chuck Butler