- currencies and metals get sold on Monday and overnight
- Growing closer to that moment…
Good Day… And A Tom Terrific Tuesday to you! well, I had an awful day yesterday with my stomach… Apparently, my chemo doesn’t like corned beef and cabbage… I’ve had days like this many times in the past, and usually I bounce back the next day, which would be a good thing for me, since today is another ballgame… I’m of the opinion, that this chemo that I’m talking, isn’t really doing anything for me, except make me sick… But that’s an issue I’ll take up with my oncologist upon my return to St. Louis in a couple of weeks. Al Stewart greets me this morning with his song: Year of the Cat…
Well, the dollar started the week, yesterday with a small rally… The BBDXY was up 2 index points, and pushed the euro further away from the 1.09 handle. But for the rest of the currencies they look about the same today as they did yesterday. Gold was basically unchanged after starting the day up it gave way to the short paper traders, and ended up only 10-cents… Silver turned its red number in the early trading to a gain of 5-cents… Gold closed at $2,160.80, and Silver closed at $25.15…
I read a piece yesterday that had a major bullion dealer calling for a Gold rally in 2024, and seeing it run up to $2,500… This wouldn’t happen to be the same major bullion dealer that leads the league in short paper trading would it? Why yes, it is! So, either, they plan to drop the short paper trading the rest of the year, or that they are long a bunch of Gold and need to sell it, because deposit drop off is accumulating… I’m just saying…
The price of Oil bumped up another buck to end the day yesterday with an $82 handle… And bonds kept getting sold with the 10-year’s yield rising to 4.32% on the day…
In the overnight markets last night…Well, I guess the fix is in… I say that because the dollar stormed through the overnight session last night, gaining 5 index points in the BBDXY. The currencies all look as though they were sent to the sick bed again, and even the Mexican peso took a loss overnight. Gold is getting sold to the tune of $6 of loss this morning, and Silver has given up 22-cents in the early trading today… It’s all about the dollar this morning, as we get nearer to the time tomorrow when the FOMC announces their rate decision, which by now is in the cards… no rate movement, and the Fed Heads will be watching inflation closely in case they need to hike rates… IF Jerome Powell does say that tomorrow, one would think that the cow would be out of the barn… Katy bar the door, and all those other adages… The dollar will once again be the cat’s meow with investors, traders, hedge fund manager, and the rest of the lot.
The price of Oil remained trading with an $82 handle overnight, and bonds hardly moved from their close yesterday…
Well, all the reports that China’s economy is dying a quick death are being proven to be false dawns… China had some better than the average bear economic reports over the last weekend… It was reported that: China’s factory output and retail sales beat expectations in the January-February period, marking a solid start for 2024 and offering some relief to policymakers even as weakness in the property sector remains a drag on the economy and confidence.
Ok, in the U.K. this week, the Bank of England will meet to discuss rates… This snippet is from Bloomberg.com: “Investor bets on pound gains are at the highest level for 17 years, leaving the currency at risk of a pullback if the Bank of England joins peers in signaling rate cuts this week.”
So, what will the BOE do this week with rates? Inflation in the U.K. is falling fast, and the BOE might feel as though they’ve defeated inflation … and signal a rate cut coming soon but… I think they would be making a mistake, an error, a boo-boo, a stupid move!
Last week, the European Central Bank (ECB ) left rates unchanged, and I would hope the BOE would follow suit…
In Russia, Mr. Putin won another term…He received 87% of the vote… Can you say landslide? The question I had was who was so bold to vote for a different candidate other than Putin? Never mind, I don’t want to know, or point them out, for they could be taking their own existence into question…
Do you recall early last week when I talked about the drone attacks on the Russian refinery and said that it should be a boost to the price of Oil? Well, since then there have been further attacks, and the price of Oil has bumped higher by $5 since then… I love it when a plan comes together!
The Bank of Japan (BOJ) will meet tonight for us, and it is highly expected that the central bank will end their experiment with negative rates… This could be HUGE for yen, and Gov’t bond yields… So, don’t take this meeting lightly, it could bring about a change for Japanese yen and Gov’t bonds that affect all investors… No, wait! the BOJ met last night! And hiked rates for the first time in 17 years! At first, the investors and traders reaction to this news, that was highly anticipated, was akin to waiting so long to meet Santa Claus, when you’re already an adult… I doubt this will continue…
The largest wage increases in 3 decades was the fuel to fan the inflation fire in Japan, if the BOJ didn’t end negative rates… I would have expected the Santa Claus meeting… You would think that they saw what happened in the U.S. when the Fed Heads left rates too low, for too darn long… Maybe, just maybe they saw it…
And here in the U.S. the Fed’s FOMC will meet on Wednesday and decide what to do with rates… I told you yesterday what I thought would happen, so you’ll have to go back and read that again if you’ve forgotten or if you missed class yesterday…
So, did you fill out your NCAA Tournament bracket? I did two of them, and I doubt I come anywhere close to getting anything correct, I never do… But to worry about it would defeat the fun of filling them out, and acting like you know what you’re doing!
The U.S. Data Cupboard today has some more housing stuff, but in reality, housing isn’t moving the markets these days, so we move along for these are not the droids we’re looking for…
To recap… We started the week yesterday with the dollar rebounding, and gaining 2 index points in the BBDXY. There are a couple of Central Bank meetings this week that could move the currencies associated with the Central Bank… And the reports of China’s death have been greatly exaggerated!
For What It’s Worth… I’ve been reading about the Gold beans that have become quite popular in China, and thinking, now that’s something that we should be selling here in the U.S. the article can be found here: Gold beans all the rage with China’s Gen Z as deflation bites | The Straits Times
Or, here’s your snippet: “With China’s deflation at its worst in 15 years, a volatile stock market and bank interest rates too low for her liking, 18-year-old Tina Hong is placing her financial security in gold beans.
Weighing as little as one gram each, the beans – and other forms of gold jewelry – are increasingly viewed as the safest investment bet for young Chinese in an era of economic uncertainty. It is part of a larger consumer trend for all things gold – from bullion to beans and bracelets – that has gripped the mainland.
“It’s basically impossible to lose money from buying gold,” reasoned Ms Hong, a college freshman studying computer science in Fujian province.
In January, she began buying gold beans because of their relatively low cost of about 600 yuan (S$113) per gram. She has more than two grams of the beans and will continue buying them as long as costs are lower than international gold prices, she said.
Branded as an investment entry point for young consumers, the beans, which come in glass jars, are the latest hot-selling items in Chinese jewellery stores. Generation Z consumers – buffeted by high youth unemployment and the nation’s slide into deflation – are now among the top consumers of gold accessories in the world’s second-largest economy, according to the 2023 China Jewellery Consumer Trends Report by Chow Tai Fook Jewellery Group.
Young people are skipping “pleasurable consumption” and instead purchasing “asset-style jewellery” such as gold beans for adornment and investments, said Mr. Nikos Kavalis, managing director at the London-based consultancy Metals Focus Ltd.
Chuck again…like I said above, this is something that should be sold here in the U.S., for all the time all I hear from youngsters is that Gold is too expensive to buy… And that what are they going to do if the financial system faulters, they can’t go to the store with a 1 oz Gold coin and by a loaf of bread?… Well, this kills two birds with one stone…
Market Prices 3/19/ 2024: American Style: A$.6511, kiwi .6044, C$ .7367, euro 1.0844, sterling 1.2682, Swiss $1.1243, European Style: rand 18.9958, krone 10.7011, SEK 10.4815, forint 364.84, zloty 3.9864, koruna 23.2691, RUB 92.50, yen 150.54, sing 1.3427, HKD 7.8221, INR 83.04, China 7.1993, peso 16.90, BRL 5.0253, BBDXY 1,242.24, Dollar Index 103.96, Oil $82.03, 10-year 4.31%, Silver $24.93, Platinum $903.00, Palladium $1,000.00, Copper $4.09, and Gold…. $2,154.09
That’s it for today… Well, our Blues won again on Sunday night, maybe, just maybe, cause you never know, the Blues are going to go on a run before the playoffs begin… (I sure hope I haven’t jinxed them with that!) The Blues get back on home ice tonight VS the Avalanche… It’s been fun having my darling granddaughter, Delaney Grace, and her brother Everett, with us this week… I say things to Delaney Grace and she rolls her eyes at me… The other day, she was sad about something, and I asked here if she missed her boyfriend… She quickly informed me that she had no such thing! See, isn’t it fun having an old guy like me to ask questions? My second fave Chicago Song takes us to the finish line today with their song: Beginnings… I hope you have a Tom Terrific Tuesday today, and will Be Good To Yourself!
Chuck Butler