- Currencies and metals go nowhere yesterday
- Germany wants their Gold returned… Good luck with that!
Good day… And a Wonderful Wednesday to you! Well, after a great May for my beloved Cardinals they have started June on a sour note… Suddenly, they can’t pitch… They’re still hitting the ball, but no pitching is dooming them… UGH! Well, my first day all by myself went well, if I do say so myself! I don’t foresee any problems arising, but then I didn’t foresee it when I had my stroke, or when I woke up in the middle of the night bleeding internally… So, we’ll just keep our fingers crossed… I read the other day that the great Sly Stone had died… And therefore, I put his song on first this morning: If You Want Me To Stay…
Well, I sure didn’t miss anything yesterday, as the dollar was flat as a pancake (Head East) Gold was going nowhere, neither was Silver, the price of Oil was flat, and the 10-year Treasury was quiet… The BBDXY ended the day at 1,209, that’s the same level it started the day at, and the euro remained above the 1.14 figure… There was no real economic data to move the markets, and so without any Tariffs to damage the quiet markets, there was little going on other than the riots in L.A.
The lack of economic data ends today, as the STUPID CPI for May will print… The markets believe that this print will be the determinate of FOMC’s decision to either cut rates in July or leave them unchanged again. Longtime readers know I don’t like to start the letter with economic data, but I have to call out the markets here for putting so many eggs in the CPI’s basket… I would think that by now, the markets and the especially the FOMC would be quite aware that the STUPID CPI is not the real word on inflation… Maybe the FOMC knows, but the markets still get giddy when it’s a SUPID CPI day…
I can’t help but think that the STUPID CPI will surprise the markets with a stronger inflation number than they are expecting… Right now, the experts think that the STIPID CPI on an annual basis will be 2.4%… yeah, consumer inflation is on 2.4%… I believe that one like I believe in the luck that comes to you if you find a four-leaf clover…
OK, so Gold closed yesterday at $3,324, and Silver closed at $36.56… the price of Oil remained trading with a $64 handle, and the 10-year’s yield was 4.48% at the close yesterday… Those levels are not far, and in some cases bang on, from where they stood at Monday’s close..
In the overnight markets last night… There was a bit of slippage in the dollar overnight, as the BBDXY starts today down 1 index point at 1,210… The STUPID CPI print today will dictate which way the dollar goes from here… I shake my head in disgust that the markets swallow the STUPID CPI hook, line and sinker… But it is what it is, and there’s nothing I can do to change it, except point out how stupid the print is each month…
Gold is up $10 to start our day today, and Silver is seeing some pressure and is down 26-cents to start our day today… The price of Oil has bumped higher and trades with a $65 handle this morning… Wouldn’t you know it? I noticed yesterday when I took my car to the shop for the inspection, that I needed to buy gas soon… it aways works out that way, that I need to buy gas whenever Oil bumps higher in price… UGH!
The 10-year Treasury bond remained around the 4.50% level overnight, and starts the day today trading with a 4.47% yield… This yield will too be influenced by the results of the STIPID CPI today…
Well, countries around the world that decided to hold their Gold reserves in the U.S. are starting to ask the question, why? Here’s a snippet of an article that was on Money Metals.com “With the U.S. weaponizing the dollar and trade, some people in Germany are calling on the Bundesbank to move at least some of its gold out of New York and bring it home to minimize the risk of U.S. meddling.
Germany owns the second-largest gold reserves in the world at 3,352 tonnes. About 1,200 tons valued at around $130 billion are stored at the Federal Reserve Bank of New York.”
Chuck again… yes, if I were the king of a country other than the U.S., and I saw everything that’s going on in the U.S. I would demand my country’s Gold be returned immediately! Do you remember the last time Germany requested their Gold be returned? And the Fed NY told them that they would have to wait several months before that demand could be met? And an audit of our Gold holdings hasn’t been done in decades, does that make any sense to you?
So, all the markets are talking about these days, is Silver… And usually that means that when you jump in cab and the cabbies tells you that he just bought some Silver, that the run is about over… But in Silver’s case, it has lagged Gold’s rise for so long and been held down, by the short paper traders, that I think the talk is more of a “look at Silver!, boy we’re surprised!) So, I’m not worried about the cabbies talking about Silver… I’m just saying… My call for Silver hasn’t changed… I expect Silver to hit $40 this year, and get back to $50 next year where it last traded in 2011…
In 2011, Forbes called me and asked to write an article for them about Silver, as it was rising through the $40 figure… The headline for the story was: Silver, The New Gold… and it ran, thus making me a regular name in households all over the world… Silver then did rise above $50 before it dropped like a rock….
How did Silver make it to $50 with the short paper traders on the prowl? Well, this was a case that I’ve pointed out many times through the years, in that if everyone bought physical metals it would end the short paper schemes… And that’s what happened in 2011…
Speaking of the short paper trader’s scheme… They remain in the markets almost daily, as they still try to keep a lid on Gold & Silver… Oh, Shoot Rudy, they have widened their scheme to Copper, Platinum and Palladium too! But if all the ETF holders were to sell their ETF and buy the physical metal, then we could see the short paper trading scheme dissolved… Maybe?
Here are the good folks at GATA regarding that thought: “In any case GATA has long suspected that gold ETFs were, like the U.S. gold futures market, established to divert investment from real metal into mere derivatives that could create a vast, imaginary supply of gold as long as investors didn’t get wise to the racket and demand delivery.
Of course, lately there seems to have been many demands for delivery of gold, including heavy demands from central banks themselves. The major central banks, being members of the BIS, the hub of gold intervention, surely figured out long ago what was going on and, in taking delivery, have signified that they’re no longer playing along with the racket and the U.S. dollar imperialism it was engineered to enforce.”
Chuck again… We can only hope that comes to fruition, eh?
The U.S. Data Cupboard has the STUPID CPI this morning for May… I’ll say no more about how STUPID this data is… And that’s the only print of the day today… I’m sure the BLS will see to it that the STUPID CPI doesn’t rise… Don’t you just love manipulators? I know that I don’t think I could function without them! NOT!
To recap… yesterday was a nothing day in the markets that we follow… Gold, Silver, the dollar, Oil and bonds were flat to even on the day, and so, the markets must have known that I was gone for the day! HA! Germany wants its physical Gold back… And Chuck gloats about his past! You won’t want to have missed that!
For What It’s Worth… Well, this was bound to happen when all the talk of very high tariffs were being announced for China… And this is the result that can be found here: China Exports To US Tumble As Transshipments To Evade Trump Tariffs Soar | ZeroHedge
Or, here’s your snippet: “Overnight China published its latest inflation/trade data dump. It showed that, as expected, China is still unable to kick start its economy as it remains mired in deflation, with May CPI printing -0.1% (the last time CPI was positive was in January) while PPI is going from bad to worse, printing -3.3% YoY, and negative since February 2023!
Meanwhile, China’s trade growth moderated in May – after the April surge – despite the substantial tariff rollback between the U.S. and China, and came in below consensus expectations (exports: +4.8% yoy, imports: -3.4% yoy).
The moderation in headline export growth reflects the continued fall in China’s exports to the U.S. with another 17% sequential decline after seasonal adjustment. Meanwhile, the decline in imports appears widespread, consistent with fewer working days in May compared with a year ago.
By product, export value of housing-related products fell in May, while exports of automobile and tech-related products rose. The imports of energy products and metal ores declined notably, partly due to falling prices. Overall, the trade surplus was US$103.2bn in May, higher than in April.
By region, while China’s exports to the US plunged further in May, exports to other economies picked up.”
Chuck again… Well, if you have the time to view this article on line, you’ll find a lot of very interesting charts regarding what this article is all about… I’m just saying…
Market Prices 6/11/ 2025: American Style: A$ 6506, kiwi .6029, C$ .7327, euro 1.1430, sterling 1.3490, Swiss $1.2158, European Style: rand 17.7876, krone 10.1199, SEK 9.6127, forint 350.37, zloty 3.7874, koruna 21.6769, RUB 79.04, yen 145.20, sing 1.2866, HKD 7.8482, INR 85.55, China 7.1882, peso 19.01, BRL 5.5146, BBDXY 1,210, Dollar Index 99.-06, Oil $65.92, 10-year 4.47%, Silver $36.30, Platinum $1,267.00, Palladium $1,094.00, Copper $4.78, and Gold… $3,333
That’s it for today… Well, I think I had told you that my cataract surgery is now scheduled for June 26th… So, there’ll be no Pfennig on that day, just mark your calendar! This coming Sunday is Father’s Day… And it’s at this time each year that I get all sappy about my dad… I’ll try not to do that this year… But I sure miss my dad, he was a man among men, and I’ll leave it at that… for now… make sure you go to see your dad, and tell him you love him… Because, well, just because! Steely Dan takes us to the finish line today with their song from the same album name: Aja… ( I love this album!) I hope you have a Wonderful Wednesday today, and please Be Good To Yourself!
Chuck Butler