- Gold gets sold, but Silver sees a gain on Tuesday
- The FOMC meets today, what will Powell say?
Good Day… And a Wonderful Wednesday to you! I had a great lunch yesterday with my good friend and former Big Boss, Frank Trotter… We talked for a good time about everything under the sun and moon. I was full when I got home, and skipped dinner last night… REO Speedwagon greets me this morning with their big 70’s hit one: Ridin’ The Storm Out
Well, I know, I know I am beginning to sound like a broken record, but the short selling of Gold & Silver started yesterday, albeit not as harshly as in previous trips to the woodshed that the SPTs took Gold & Silver to… Gold lost $30 on the day….. Gold closed the day at $3,953 Silver saw the same type of selling that Gold saw early in the day, but Silver rallied as the day went on and finished the day up 15-cents… and closed at $47.10… Those are a long way from where they closed last Monday… But as Brien Lundin showed us yesterday in his FWIW article the percentage loss still wasn’t as bad as the previous multi-day engineered takedown sat at when all was said and done… So, Silver finished the day on the plus side for the first time in a week… Now, it’s Gold turn… I guess we’ll see, eh?
The dollar gained 1 index point in the BBDXY to 1,211… Strange, eh? When everyone and their brother are awaiting the announcement of another rate cut today… A rate cut, as I’ve said before: A RATE CUT IS EQUAL TO A DEBASEMENT OF THE DOLLAR!! What the dollar bugs don’t understand about that, I for the life of me can’t figure out, and the only thing I can think of is that the dollar bugs don’t understand the word Debasement! Yeah, that’s it! They’re just too dumb to figure it out! Now, I see said the blind man as he spit into the wind… It’s all coming back to me…
The Price of Oil saw another drop yesterday this time to end the day with a $60 handle… Presumably, there’s a glut of Oil to deal with…. Hmmm…. The 10-year had already seen its yield fall to 3.98% yesterday morning, and it remained there the rest of the day.
The U.S. Treasury Sec. Bessent said something yesterday that was very strange… “He said ” Gold price rising has helped U.S. substantially” What? Really, Scott? Unless the Gov’t has backroom plans to revalue its Gold at Fort Knox… But there’s been no rumor of that happening, not that revaluing its Gold would do anything but improve the off-balance sheet numbers, because they would have to revalue it at multiples of $10,000 to offset the debt… The math just doesn’t work… So, once again, is Bessent that ill-informed that he doesn’t know that when Gold gains… The dollar loses?
I shake my head and wonder where on earth these guys come from? Maybe he’s doing his best imitation of Bullwinkle and has something up his sleeve? I’ll give him credit when he tells what’s in his plans…
Frank & I had the problems with monetary policy, tariffs, The Fed/ Cabal/ Cartel, all figured out yesterday, but… I have you dear reader to talk to about these things, but what can we do to change things? Nothing, nada, nil, zero, zilch… All we can do is to alert people to what’s coming, and to make sure your investment portfolio is diversified with different asset classes than just stocks and bonds..
In the overnight markets last night… Gold finally saw a bid! Gold is up $65 to start our day today… I guess the SPTs took a pause for the cause and decided to let Gold get to its own devices… Silver is up 10-cents to start our day today… Is this the Good Witch, Glinda telling us that everything is ok now, it’s clear we can come out again? I’m leery of another false dawn like last Monday… The Friday before last Monday saw a major engineered takedown of the metals, but Monday the memory of the selling on Friday was erased, and that was then turned to short selling on Tuesday, through yesterday…
The dollar slipped back to a 1,210 level in the BBDY overnight.. Stuck in the mud it seems for the dollar… The press conference following the rate cut this afternoon, will be the decider of whether the dollar continues through its underlying weak trend, or if it will rally… Chairman Jerome Powell, will need to choose his words carefully, this afternoon, and give the markets his best “Fed Speak”…
The price of Oil remained trading with a $60 handle overnight, and the 10-year bumped higher with its yield to start today with a 4.00% yield…
Well, Doug Casey wrote yesterday in his International Man letter that “Gold has quietly overtaken the euro to become the second-largest component of global foreign exchange reserves.
While the US dollar and US Treasuries still dominate, their share has been steadily shrinking as gold’s role expands. Central banks now hold gold at roughly 20% of their reserves, compared to the euro’s 16%—levels not seen since the days of the gold standard.”
Chuck again… I would think and this is just me thinking logically, that the Central Banks around the world will start to voice their displeasure of Gold getting taken to the woodshed…. I guess that remains to be seen, but it would certainly be on dance card if I was the head of a Central Bank!
When the dollar selling had come to an end yesterday.. I felt as though I had been a ride on the Screaming Eagle roller coaster… But those of us who took it for what it was and not any correction of end of a bull market, will feel as though the ride was rough, but we got through it..
And as always I’ll remind you that the SPTs provided us with a cheaper price and therefore a buying opportunity! Don’t let this one pass, because… Well, just because…
The currencies have been stuck in same mud as the dollar has been in recently and somedays it feels like I’m writing down the same currency levels as the previous day… But there are two currencies that have their waders on and got through the mud just fine… The Swiss franc, and Chinese renminbi… The franc has held onto its gains, while the renminbi is trading stronger VS the dollar… I don’t know if the Chinese plan to allow further appreciation of the currency, or is this just window dressing, if you will, for the meeting between the POTUS and Xi… The POTUS won’t be able to accuse the Chinese of keeping their currency weak, that’s for sure!
The reports last week from Japan showed that their consumer inflation is rising to a level not seen in some time, which got the rate hike bugs all excited… But the Bank of Japan has done nothing but disappoint investors and I figure they will continue to disappoint with no rate hike. So, the yen continues to get weak… Nothing new here…
I don’t know if you’ve been following its progress in the currency roundup each day, but the if you haven’t, you’ll be surprised to see Copper trading above $5… The short paper traders are focusing on Gold & Siver right now, and therefore Copper is stealth-like with its gains…
No Data again… This is really getting old with me, folks… BUT! The ADP Employment Report will print today, as it’s not a government issued report… In the past, the markets don’t pay attention to the ADP report, but today will be different, in that it’s the only piece of data we have to work with… So, watch for that…
To recap… Gold and Silver finally saw the selling end yesterday… Chuck just got off the roller coaster ride, but is ok… The dollar got bought by a smidgen yesterday, and once again Chuck questions the mental aptitude of the dollar bugs when they know very well that the Fed Heads are going to debase the currency today…
For What It’s Worth… Well, here we are with yet another article on Gold.. But with all the selling lately, I find it necessary to keep Gold in the minds of everyone… So, there’s that! You can find this article on the prospects of Gold here:Gold’s not done: LBMA survey forecasts prices near $5,000 in 12 months | Kitco News
Or, here’s your snippet: “After significantly underestimating the gold’s potential for the last two years, market players are playing catch-up, with expectations that gold will test support just below $5,000 an ounce by this time next year, according to sentiment at the 2025 London Bullion Market Association (LBMA) Global Precious Metals Conference.
In a survey conducted during the conference, delegates said they expect gold prices to rise to $4,980.30 an ounce. The LBMA forecast reflects a 25% gain from current prices. The bullish outlook comes as gold has dropped sharply below $4,000 after a wave of selling hit the market following record highs above $4,360 an ounce.
Last year, delegates expected gold prices to be around $2,941 an ounce; however, prices are now more than one-third higher than last year’s prediction.
Gold is seeing its best annual gains since 1979, with prices up more than 50% this year. However, it is not the best-performing asset in the precious metals space. Silver is trading at $47.14 an ounce, up 61% year-to-date, while platinum last traded at $1,591 an ounce, up more than 93% so far this year.
According to the survey, 40% of participants expect gold to be the top-performing asset in the precious metals sector through 2026.”
Chuck Again… Take this for all the grains of sand you wish… But for me, this aligns with my thoughts on Gold, so there’s that!
That’s it for today… The Blue Jays evened the Series at 2 games apiece… We’re in a period of rain for the next couple of days here, but Friday, it’s supposed to be clear for Halloween… I’m sure I’ve told you this before, but I enjoy giving out the treats and seeing the little ones in their costumes… The Bigger kids kind of get me rankled, but I let it slide… I noticed one thing about seeing Frank Trotter yesterday, he didn’t seem to have aged one iota, while I know for a fact that I look in the mirror each day and don’t recognize the man in the mirror! How does he remain looking so young? Oh well, que sera sera… The Guess Who take us to the finish line today with their great 60’s song: No Time… I hope you have a Wonderful Wednesday today, and Please Be Gold To Yourself!
Chuck Butler