- the phony dollar rally is getting on Chuck’s nerves…
- Gold/Silver have had an ugly week!
Good Day… And a Tub Thumpin’ Thursday to one and all! My visit to the heart doctor went fine, he’s not happy that I’ve gained some weight, but admits that I’m still way ahead of where I was a few years ago, so there’s that! And while I too am not happy about the return of weight, I know that once they can stop having to give me steroids after infusions, then I can truly begin to lose it again! Harold Melvin and the Blue Notes greet me this morning with their song: If You Don’t Know Me By Now…
Well, this week has been a very ugly week for Gold/Silver… it started on Monday, when Gold only gained $3 and then on Tuesday, it lost $71 and Silver lost $2.84… Gold is now “oversold” in the RSI (That I’ve explained before) And Silver is just about to go into the “oversold” area of the RSI… Then yesterday, came and put the losses on Tuesday to shame… Gold lost $187 and Silver lost $1.66… Gold closed yesterday at $4,071, and Silver at $63.55… And this on a day when the STUPID CPI showed that inflation had risen to 4.2% year on year!
Boy, all this Gold/Silver selling is really giving me a rash! It’s as bad as it can be right now, and would lead me to believe that the “low” has been reached… At least I hope so!
The dollar also rallied on the day and ended yesterday at 1,210… Again, on a day that saw inflation rise to 4.2%! This dollar rally Is phony Baloney! I don’t mean to make fun here, but lightening up the news is something that I do think needs to be done!
The markets are so manipulated and influenced by everyone under the sun and moon… The dollar, metals, bonds, stocks, Oil, you name the asset class it’s seeing manipulation… Sure, the markets will feel that the FOMC needs to hike rates, giving the dollar a lift, to fight inflation, but they’re wrong… I said this last week, and I’ll repeat it again… The FOMC’s rate hikes only affect the short end of the bond market… If the Gov’t doesn’t do anything to slow money supply, inflation will continue unabated…
The POTUS said the other day that the Strait of Hormuz could be closed for months… And that news didn’t have an effect on the markets, they simply shrugged it off… I think they’re wrong to do that, as I think it’s probably the truest thing that he has said about War…. I’m just saying…
The price of Oil closed yesterday trading with a $90 handle… I think that Oil is being manipulated to reflect a lower price than it should be trading with…
And the 10-year Treasury still sees the Fed Heads manipulating the yield to get it lower by buying the 10-year in droves… The bond boys, however, have the con on bond yields, and they see, now that the STUPID CPI is over 4% They’ll want to see what the FOMC does about it, at their meeting next week. (See, I think they are wrong to think a rate hike will reduce inflation… )
In the overnight markets last night… The dollar bought by drips and drabs but the BBDXY shows a 1 index point gain overnight to 1,211… Gold has lost $5 overnight, and Silver has gained 7-cents… The Gold ratio for those of you who think this important, rose the past couple of days, and sits this morning at 64… I’ve seen where if Silver was at a ratio of 15, which it used to be sitting, that it would add 100’s to the price of Silver, so… If this would former ration returns, it would be a good thing for Silver, eh?
The price of Oil slipped a buck overnight, and starts today with a $89 handle… And the 10-year saw the Fed Heads and their yield control buying bring the yield down to 4.53%… Manipulation, manipulation, manipulation is everywhere, where can one go to escape it? Nowhere that I’m aware of… sorry…
I saw that the Chinese renminbi was trading last night at 6.7755… And this morning it’s 6.7773, so it slipped a bit overnight, but still the renminbi is stronger VS the dollar than it has been in some time, and in my humble opinion, is going to just keep getting stronger…. I’m just saying… .
Speaking of China… China’s export growth accelerated in May, buoyed by robust demand for chips, autos and other high-tech goods fueling the global AI boom, providing policymakers some relief as energy price shocks from the Iran conflict weigh on broader demand.
I told you all back some time ago, that the sanctions that the U.S. Gov’t was placing on China would not hurt them, nor would the tariffs… They simply found new markets to deliver to… I’m amazed that the Gov’t propeller heads didn’t think of that before implementing the plans….
I was watching Jeopardy, as I always do, yesterday and the answer was “propeller heads” and Ken Jennings said, “That’s a phrase we no longer use”… And I said to myself, “Hey! I still use it as I feel it best describes the Gov’t wonks that put out reports”….
Well, I read yesterday that Gold has taken over as the number 1 asset class in Central Banks around the world…. Treasuries, which used to be #1 was #2, but the number is dwindling by the auction… You know that the U.S. used to be able to print as much cash as they wanted or the world needed and it didn’t come back to bite us in the rear, because Central Banks around the world would put the cash in their reserves and let them sit (or buy Treasuries with the cash) …
But Central Banks around the world decided a couple of years ago that the dollar was scary, and if the U.S. could freeze Russia’s assets, the U.S. could freeze anyone’s assets, and the Global Central Banks decided that they would much rather hold Gold than dollars…. And that’s when Gold began to rise… Gold, in 1999 was $1500… And now its 3 times higher because of the shift by Central Banks..
And with that rise in the STUPID CPI to 4.25%, out goes the hopes of a rate cut for many on Wall Street…. And Gold was pinning its colors to the flag of a rate cut, and now that it looks as though the rate cut is out the window with the bath water, Gold has to find a new reason to rally….
Gold could very well end this week below $4,000, and in January, Gold as $5,600 or so… That’s a HUGE downward movement, folks… But, in my opinion, and I could be wrong, this is a back the truck up moment for Gold…
As my good friend, the Mogambo Guru used to say, “We’re All Freakin’ Doomed”… And all you have to do is go back to a Pfennig we’re I list all the chinks in the dollar’s armor, and then you’ll be running down the street screaming” We’re All Freakin’ Doomed”!
The U.S. Data Cupboard yesterday had the STUPID CPI, and it was 4.2% year on year… Shoot Rudy, if you take out food and energy inflation was still up 2.9%… And that’s the STUPID CPI with all its hedonic adjustments! Real inflation is probably greater than 20%, but don’t let that stop the Gov’t telling lies about inflation…
Today’s Data Cupboard has PPI (Wholesale inflation) for May… I expect this to come in strong, thus giving us an indication of where Consumer Inflation will be in coming months…
To recap… It’s been an ugly week for Gold/Silver and a banner week for the dollar… Of course, Gold/Silver are being manipulated lower, and the dollar is being manipulated higher!
For What It’s Worth… Well, the FWIW well is pretty dry today, so I had to resort to looking at Ed Steer’s highlights for an article, and I found this… It’s Mike Maharrey talking about what I wrote about a week or so ago, regarding the new Fed/ Cabal/ Cartel chairman, Warsh, saying that inflation was calculated and looked at the wrong way… and hinted that he would introduce a new method… Well the article can be found here: New Fed Chair Wants to Move the Inflation Goal Posts
Or, here’s your snippet: “What do you do if you have a standard that’s not being met?
Move the goalposts!
Of course, you could work harder to meet the goal. But that’s hard. So, why not just change the standard and make it easier to meet?
That seems to be a strategy at the Federal Reserve.
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During his confirmation hearing. New Federal Reserve Chairman Kevin Warsh indicated that he preferred “trimmed averages” for price inflation.
As Reuters explained, in theory, this approach “trims off the fastest-rising prices and fastest-falling prices, leaving a more representative middle set of price changes that typically serves as a good indicator of where inflation is heading.”
But in reality, these analysts are simply removing important data points from consideration.
A trimmed average is determined by removing the high and low numbers in a series before averaging.
For instance, consider this series:
1, 8, 10, 12, 11, 7, 15, 25
The average of this series is 11.1.
To find the trimmed average, you remove 1 and 25 and get 10.5.
Note that the trimmed average understates the true average.”
Chuck Again… Thanks again to Ed Steer for his highlights… This is a good article for sure, because he’s right… if you find the goalposts are too difficult to meet, then go ahead and move the goalposts… It’s far easier than attempting to meet your goal!
Market Prices 6/11/2026: American Style: A$ .6992, kiwi .5782, C$ .7155, euro 1.1534, sterling 1.3362, Swiss $1.2504, European Style: rand 16.5069, krone 9.5310, SEK 9.5992, forint 308.03, zloty 3.6869, koruna 20.9735, RUB 72.01, yen 160.54, sing 1.2879, HKD 7.8364, INR 95.71, China 6.7773, peso 17.39, BRL 5.1678, BBDXY 1,211, Dollar Index 100.05, Oil $89.09, 10-year 4.53%, Silver $63.50, Platinum $1,660.00, Palladium $1,2580.00, Copper $6.25, and Gold… $4,066
That’s it for today and this week… Well, another appointment has been added to my schedule, and next Thursday I have to go for a Echo Cardiogram… So that means no Pfennig on Monday and Thursday next week… Sorry, but you take what’s given to you when it comes to tests… A day game in NYC today for my beloved Cardinals… I hope to be outside to watch it, as long as it’s not 100 degrees outside! So, if you’re in the neighborhood, stop by and watch it with me! There’s a chance of rain today, so that will cool things off a bit… And thanks to all who sent along congrats on the 50th Anniversary of Chuck & Kathy on Friday this week… The Moody Blues take us to the finish line today with their song: Never Come The Day… I hope you have a Tub Thumpin’ Thursday And Please Be Good To Yourself!
Chuck Butler