Gold Gets Taken To The Woodshed….

November 10, 2020

* another engineered price takedown in Gold… 

* Currencies retain some of their gains from last week… 

Good Day… And a Tom Terrific Tuesday to you! I spent the greater part of my day yesterday at the medical facility that houses both the wound center and my primary care doc. I arrived at the second of my appointments about 30 minutes early, due to some unforeseen before quick turnaround in the wound center… I admitted my early arrival and took a seat… 20 minutes after my scheduled time a nurse came from the back and told me the doctor was running behind…. I smiled and said, “ok”, but thought to myself, no dookie doc! So, another 20 minutes went by, before they finally took me back to see the doctor…  Just an oil and lube job please…  And got home 5 hours from when I left… UGH!  It would have been John Lennon’s birthday last month, so I’m tardy in playing one of his songs in his honor this morning… Wishing The Wheels (go ‘round) is the name of the song that greets me this morning!

Well… what an absolutely ugly forest day for Gold and Silver yesterday… The currencies were included but not as harshly as the metals… And all because there’s news that a vaccine is nearing completion? Ok, but what it hits a roadblock on the way to our arms? Or what happens if after several trials they find a side effect that’s absolutely a no-go for the vaccine?  Ok, I just had to get that off my chest, I should be putting on a optimistic face, and saying how wonderful this news is that maybe, just maybe we can get back to normal?  I say that with a straight face, because I doubt seriously that we “ever” get back to normal…

So, yesterday’s trading in Gold wiped out the entire previous week’s gains, and then some… Gold ended up down $86.10, that’s right I said $86.10, to close at $1.860.10. And things didn’t look so good over in the Silver trading pits… Silver lost $1.47 to close at $24.19…   Gold was actually lower at one point in the day as it traded down to $1,850…  but had some bargain buyers at the end of the day yesterday to bring it back to $1,860…

Now, see why may alter ego wouldn’t allow me to say what I was going to say yesterday about a weak dollar trend?  I said it yesterday, and then it proved me right, that the wolf is always at the dollar… I’m going to throw in a complimentary comment about the price manipulators piling on once again, but that’s a given these days, so I don’t want to be misjudged as the new Mr. Obvious!

So… what are you waiting for? The stoplight to turn a certain shade of Green?  HA! That’s my usual line when someone ahead of me is playing on their phone, and don’t move when the light turns green…  Well, that same thought can be brought to the Gold buying table…  the buying light is green, folks… are you waiting for a certain shade of green before buying?  You know I’ve always told you I was the biggest smart Alec in my neighborhood….  I once told a McDonald’s person at the window, when she asked me to move forward, I asked her why? And she replied because you’re holding up the line… At which part I made her cry, when I replied, No, young lady it’s you who’s holding up the line”…. 

I’ve matured, good thing, since I’m 65 now! And I still think these things but only to myself now, and don’t blurt them out….  But boy do I feel uninhibited with writing them! HA !

The euro remains above 1.18, proving once again that traders have drawn a line in the sand at 1.19, because as the day began yesterday, the euro was moving nicely toward 1.19, but then the trap door sprung, and the euro took a short ride on the slippery slope. But like I said, the euro remains above 1.18, and that will give the other currencies the strength to hold onto most of their gains from last week too.  

In the overnight markets last night, the euro slipped further downward, but still remains above 1.18 as I write this morning. The Aussie dollar (A$) fell back below 73-cents overnight, but kiwi held steady Eddie…  The Petrol Currencies are stronger again this morning, with the price of Oil remaining above $40… These Petrol Currencies that include: rubles, krone, real, loonies, and others have really been beaten down in recent weeks, so this turnaround is nice to see… 

So, I’ve tried to let the selling in Gold yesterday, slide by without me having a hissy fit about the price manipulators… But, I can’t hold back any further…  What we saw yesterday, was a couple of things… 1. nervous Gold owners thinking they had to sell to lock in a profit, and 2. Another Engineered Takedown by the price manipulators…  I see this morning that Ed Steer of had this to say, ” One doesn’t know how much more in-your-face the Big 8 shorts et al. can get after yesterday’s engineered price declines in three of the four precious metals.  But we’ll have to wait until Friday’s Commitment of Traders Report to see how well they did.” – Ed Steer…     And that reminds me of what I told you yesterday, that the wolf was always at the door… 

OK, just a couple of other thoughts this morning before we head to the Big Finish…  The yield on the 10-year Treasury has been sneaking through the alley with Sally, I mean sneaking higher, and trading this morning at .94%, the highest its been for some time… What are the bond boys telling us?  (I’m pretty sure they see inflation rising in the future) 

And what’s up with the Japanese yen? The yen had been stuck in the mud around 104.80 for some time, but in a week (last) where the currencies rallied strongly VS the dollar, the yen went the opposite direction… I’m thinking that yen is seeing the same kind of thoughts that are plaguing Gold right now, and that there’s no need for safe havens…  I do believe that those thinking that thought right now, will be crying in their collective beers in the coming months…. 

I told you yesterday that the U.S. Data Cupboard didn’t have much for us this week in the way of economic data reports, and today and tomorrow, is pretty null of reports…  There are some 3rd tier reports this morning, but that’s it, until Thursday, when we get back to looking at the color of the Initial Jobless Claims from last week. Next week will be the mother of all data weeks! HA! Just kidding, but… it will have much, much more than we will see this week… It will be interesting to see what the Rocktober data brings us, as the COVID-19 virus had begun to sink its teeth into the people of the U.S. again in Rocktober… Like I said yesterday, the 3rd QTR Data had better had been an upward line on a chart from the 2nd QTR when we were economically shut down!  We’re still not 100%, free except for S. Dakota and Florida, but things, right now are better, that is until they aren’t any longer!

To recap… Gold got taken to the woodshed and slaughtered yesterday… Chuck has never seen a down day that harsh! Or if he had he had forgotten about, just like he’s going to do with this one! The currencies got sold a bit, but not as harshly as Gold & Silver… Gold was down $96 at one point in the day and saw it close down $86! Silver was down $1.47, which is HUGE for Silver…  Chuck reminded everyone that he said yesterday, that the wolf is always at the door… 

For What It’s Worth…  Longtime readers know my saying that when something happens in the U.K. (except BREXIT, as we had no states seceding) it normally takes about 6 months to hit our shores… So, when I saw this article, it made me think of that saying, and what we could be staring down the deficit spending barrel of next year this time… There’s no guarantee that this will happen, but, you might as well read about how it’s being presented in the U.K. and the article can be found here:

Or, here’s your snippet: “A cross-party group of MPs has called on the government to allow councils to run universal basic income trials in response to mass unemployment triggered by the Covid-19 pandemic.

A letter to the chancellor, Rishi Sunak, signed by more than 500 MPs, lords and local councillors says pilot schemes are urgently needed as the pandemic unleashes widespread economic disruption and drives up redundancies at the fastest rate on record this winter. Launching a UBI would mean the state paying every adult a basic sum regardless of their income.

The letter says issues with the benefit system and the end of the furlough scheme mean Britain is ill equipped to support people through the financial insecurity of the Covid recession.

“We must trial innovative approaches which create an income floor for everyone, allowing our families and communities to thrive. The pandemic has shown that we urgently need to strengthen our social security system. The creation of a universal basic income (UBI) – a regular and unconditional cash payment to every individual in the UK – could be the solution,” the letter states.

One UBI option flagged by the group would be to launch an initial £48 per week payment. Demands for such an intervention have gathered pace since the onset of Covid-19 as governments around the world increase spending to help businesses and workers. There have been UBI trials in Finland and Scotland in recent years.

Critics argue that a UBI would be too expensive to operate and would discourage people from looking for work. There are also calls for alternative policies to meet the same goals as a UBI, such as significantly raising funding for public services or expanding the benefit system and targeting it to support the neediest in society.

The Cross-Party Parliamentary and Local Government Group on UBI, however, says Covid-19 had strengthened the case for local authorities in England and devolved administrations in Scotland, Wales and Northern Ireland to be allowed to run pilot schemes.”

Chuck again… remember playing games as kids and hiding something and then telling the other kids looking for that something, whether or not they were hot or cold, according to their distance form the hidden something?   Well, right now, would say that UBI is not just hot, but burning hot, and will be found soon….  And that will make me very glad that I no longer run a department of people, that could if they wanted to, not work so diligently, and go on UBI instead…. Whew! Dodged a bullet there!

Market  prices 11/10/20: American Style: A$ .7282, kiwi .6832,  C$ .7673,  euro 1.1805, sterling 1.3035, Swiss $1.0923, European Style: rand 15.5113, krone 9.0230, SEK 8.6360,  forint 302.58,  zloty 3. 8172,   koruna 22.4180, RUB 76.69, yen 105.25, sing 1.3485, HKD 7.7541, INR 74.18, China 6.6138, peso 20.54,  BRL 5.3533,  Dollar Index 92.80,  Oil $40.57,   10-year .94%, Silver $24.22, Platinum $874.00, Palladium $2,570.00, and Gold… $1,878.90

That’s it for today… Well, I’m through with dr. appts. and hospital visits for the next 2 weeks. YAHOO! While I do appreciate the opportunity to get out of the house and go “somewhere” , I just wish there were other places to go!  I turned on the TV last night, and it was showing the Jets & Patriots playing football… As if I wanted to watch that! So, I turned the TV off and picked up my book and read…  no baseball, is not my fave time of year! Speaking of baseball… with no revenue to speak of this past year, I wonder if my beloved Cardinals will be active this winter… I doubt it, as they seem to think they can get by with what they have, which is a bunch of .200 hitters that strike out too much…  But that’s just me thinking out loud there!  The Average White Band takes us to the finish line today with their song: Pick Up The Pieces….  For an instrumental song, it’s not bad… I hope you have a Tom Terrific Tuesday, and please Be Good To Yourself!

Chuck Butler