- The dollar continues to be strongish
- The U.S and China agree on $80 Billion in tarrifs
Good Day, and a Marvelous Monday to you! Well, the regular baseball season is over and done… The Playoffs start tomorrow night… The regular season seemed to go very fast… At least for me! My beloved Mizzou Tigers lost on the road on Saturday… C’mon Tigers come back strong! I had my black & Gold on Saturday but it didn’t help… We’ve been having cloudy days with some rain lately, so no outside reading for me… UGH! Jimmy Ruffin greets me this morning with his great song: What Becomes Of The Broken Hearted…
Well, the week ended on a different note than had been the norm all last week… The dollar saw some selling, and the BBDXY closed the week at 1,212… The Iranians made a peace proposal to the U.S., but was turned down by the POTUS… I would think that’s the reason for the selling of the dollar… besides in the RSI the dollar was overbought, and that used to mean something…
Gold/Silver closed the week up slightly… Gold was up $10, and $30 off its high for the day, as the SPTs were there… Silver also closed up slightly 42-cents and 80-cents off its high for the day… Those darn SPTs have to gummy things up all the time…
The price of Oil lost $2 on the day, Friday and closed the week at $92… And the 10-year Treasury saw its yield at 5.16% to close the week…
In the overnight markets last night… The SPTs have really out done themselves once again… Gold is down $120 and Silver is down $2.72 to start our day/ week… And these two have come back from being down even more overnight… Gold was down $200 at one point… Yes, I was awake all night and couldn’t sleep, especially since I saw what they were doing to Gold…
The dollar gained 1 index point overnight and starts today at 1,213… The story below will help explain the dollar’s upward move… The dollar has gotten so strong that even the Swiss franc is losing ground so much that the 1.20’s is questionable for the franc…. And the SPTs didn’t stop with Gold/ Silver, they went after Copper too, and Copper is down $12 to start our day/ week… UGH!
The price of Oil has risen again and trades this morning at $95…. I told you that the price of Oil would stay down just a short time before head higher again and looks like I was bang on…
And the 10-year Treasury’s yield is 5.21% this morning… What level will the bond boys be happy with for this bond? 5.21% is quite high and it looks as though it won’t stop rising until ?
Reuters reported this morning that the U.S. and China had agreed to $80 Billion of cuts in tariffs… That’s a good thing, folks… Now, if only the U.S. and China would agree to actually track these cuts and monitor them…
That’s the problem with Gov’t plans… There’s never any monitoring of the plan and making sure that the plan goes as announced…. I’m just saying…
A couple of things I want to mention this morning… The RSI tracks the movement of assets and tells traders when the asset is overbought or oversold… In this case, the dollar is well into the overbought section of the RSI… Usually, this will play out accordingly… we’ll have to see, eh?
The other thing is that there was a 5-year Treasury auction late last week that didn’t go so well, even though the yield then rose to its highest level (5.07%) since we as a country were still reeling from the 9/11 attacks… Foreign demand dropped from 60% to 57%.. And there was a HUGE tail that had to be taken in by the Primaries…
Seeing the rot on the auction vine, the 10-year was sold too and its yield rose to 5.18%… This is very bad for or finances folks… How in the world will we be able to pay the bond servicing costs (interest)? Print more money… And Money Supply will go through the roof!
You may have taken exception of something I wrote on Thursday that we as a country need a friend… Doesn’t this 5-year auction show just that?
Well, this is the last week of September… And Friday will be the first Friday of Rocktober… And that means the BLS will be cooking the books and adding hedonic adjustments they can come up with to make the labor report look better than last month’s 162,000 created in August… I read where the markets are looking for a major number to print and that would send the yield on the 10-year to new heights… Remember, August had over 40,000 teachers going back to work that were counted as created… and then the BLS added just for good measure 74,000 jobs out of thin air… So, to me the actual jobs created in August was 46,000…
And then I couldn’t believe I heard him correctly, but I do believe that Kevin Warsh, the new el jefe at the Fed/ Cabal/ Cartel, said that employment was strong, and therefore his FOMC would concentrate on getting inflation down…
Strong? He had better look up the definition in the dictionary of the word strong, because he certainly has a different meaning of the word… I’m just saying…
The euro is leading the rest of the currencies lower… And the dollar rally has become a real problem… There’s nothing on the Central Bank meeting table, and there’s nothing data wise that could help them right now, so it’s all up to whenever the dollar reacts to the overbought position it has in the RSI…
The U.S. Data Cupboard is wanting the first two days of this week, and it won’t be until Wednesday that we receive real economic data… Until then, only a Fed Hed speaking today is on the docket… And tomorrow, we’ll see some unemployment data… but not the data that moves the markets…
To recap… The dollar continues to rally and has pushed the currencies so low. How can one sit there and watch this without adding some cheaper currencies? Gold / Silver are getting whacked in the overnight markets, and Warsh needs to look up the word “strong” in the dictionary…
And in other news… RIP Bob Pettit… died last week at 93… he was a St. Louis area legend in basketball… I watched him play once and marveled at how he was able to move about the court and score at will… RIP…
For What It’s Worth… this article was printed originally last Friday, so it doesn’t take into consideration the more than $2 downward move by Gold last night. But, it’s worthy to read because it talks about diversification and that’s good in my book! You can find the article here: Gold is throwing out the old rulebook | Kitco News]
Or, here’s your snippet: “- By almost every traditional correlation, gold should be substantially lower than it is today – and the fact that it isn’t is telling us something loud and clear.
The Federal Reserve is tightening monetary policy, the U.S. dollar is strengthening and the 10-year Treasury yield has surged to around 5.2%, its highest level in 20 years.
World Gold Council modeling suggests that, all else being equal, every 25-basis-point increase in the U.S. 10-year Treasury yield translates into roughly a 1.75% decline in gold. With yields surging higher, gold prices should be well below $4,000 an ounce.
Instead, gold is holding around $4,300. This resilience underscores just how dramatically the precious metal has diverged from its traditional relationship with interest rates.
Of course, gold is not immune to higher yields. Prices are down more than 2% this week and have fallen sharply from their recent highs. Rising real yields increase the opportunity cost of holding a non-yielding asset, while a stronger U.S. dollar creates another significant headwind.
But considering the magnitude of these pressures, gold’s losses remain remarkably contained.
Investors are no longer looking at gold simply through the lens of interest rates. Central bank demand remains an important pillar of the market, while investment demand through gold-backed exchange-traded funds remains relatively resilient.”…
Chuck Again… This downward movement in Gold is a tough row to hoe, as I think about all the people that have not bought Gold, and how this is should be an excellent buying opportunity, but with it doing down every day, when do you buy? I would say, now, because that’s your opportunity… I’m just saying…
Market Prices 9/28/2026: American Style: A$ .7023, kiwi .5667, C$ .7129, euro 1.1379, sterling 1.3265, Swiss $1.2025, European Style: rand 16.3965, krone 9.4975, SEK 9.9467, forint 322.66, zloty 3.8426, koruna 21.4368, RUB 84.46, yen 156.96, sing 1.2778, HKD 7.8449, INR 9598, China 6.7136, peso 17.76, BRL 5.2012, BBXY 1,213, Dollar Index 101.12, Oil $95.77, 10-year 5.21%, Silver $61.69, Platinum $1,746.00, Palladium $1,253.00, Copper $6.63, and Gold… $4,169
That’s it for today… My beloved Cardinals limped out of the regular season as they got swept by the Brewers… The had a losing record for the second consecutive year in 2026… But they performed better than the forecasters predicted for them, so there’s that… I go back to the doctor that sent me for the Moh’s surgery, today… She wants to make sure that the spot is healing correctly… My favorite song by Chicago takes us to the finish line today… Hard Habit To Break… I hope you have a Marvelous Monday today, and Please Be Good To Yourself!
Chuck Butler