- the dollar goes on a rampage overnight
- Is Gold just resting before getting in the race again?
Good Day… And a Tom Terrific Tuesday to you! It was a dreary day here, I hope the sun was shining where you were… I didn’t get outside yesterday, so I was feeling kind of down… My kids bought me a 1-year membership to: My Stories… And there I can write my life history and put it in a book for my kids to have after I’m gone… Maybe they’ll be interested in it, or maybe they won’t! Very interesting… Eric Clapton greets me this morning with a song that when I was in the band, we used to open up with: Blues Power…
Well, the dollar continued to get bought yesterday and moved above the 1,217 figure on the day… I just don’t get why the dollar bugs have the con right now… The U.S. is in a war, and their deficit spending has only ratcheted up during this time… And with that we have the need to finance the deficit spending, and countries are backing away from the Treasury window… But I guess they’ll stick with the dollar until the floor drops out beneath them… So, we’ll have to deal with this dollar strength for a bit time more…
Gold found a way to gain yesterday, but I doubt that it will last, the SPTs must have been asleep at the wheel again… Gold gained $39 to close at $4,193, and Silver got sold, losing 17-cents to close at $65.21 . There’s nothing I can do to stop all this selling, so I’ll just have to live with it…
The price of Oil slipped again yesterday and ended the day trading with a $74 handle… The bond boys are showing the Fed Heads who’s in charge. It’s been a month of Sundays since the bond boys stiffed their neck and showed that they were in charge… The 10-year Treasury’s yield rose to 4.51% to end yesterday…
In the overnight markets last night… All hell has been released! The dollar is soaring and Gold/Silver is being left for dead… The BBDXY is 1,222 up 4 index points from yesterday’s close, and doesn’t look like its going to stop at any time in the near future…
Gold is down $73 to start our day today… See? I told you above that Gold’s good fortune yesterday wouldn’t last… I hate when I’m right about Gold is going down… Silver is down over $3 to start our day, and this is getting serious folks… The SPTs are serious about taking these metals lower and no one is stopping them!
The price of Oil dropped again overnight and trades this morning with a $73 handle… And the 10-year Treasury must have triggered the Fed Heads to implement their yield control as the bond was bought overnight and starts today with a 4.49% yield.
Why, oh why, do I get so down whenever the sun doesn’t shine and then to make matters worse, the weatherman is calling for rain this week… UGH!
I was reading my favorite read, Grant Willams, and he stated something in his TTMGH letter that made me think… I had thought that that very little had happened in the past 8 years, but he reminded that they had been a ton of stuff happen… I’ll let him list them for you:
“Cry Wolf…Again
Eight years later, the argument feels less theoretical. Since Cry Wolf, we’ve had the Covid crash, trillions in new money creation, the worst bond-market drawdown in recorded history, the return of bond vigilantes, the Truss Moment, the freezing of Russia’s reserves, the rise of BRICS alternatives, record central-bank gold buying and a growing crack in the old reflex that, in moments of crisis, investors automatically flee to dollars and Treasuries. Meanwhile, US debt service now exceeds defense spending, the dollar’s reserve share continues to erode, and gold is quietly reclaiming its place at the top of the monetary food chain.”
Whew! That wore me out just reading them all! HA! One of these days, I’ll get to meet Grant in person, and I’ll be thrilled! Those are all things I wrote about in the past… Since they all happened spread out and not together, I just didn’t think there was that much! But I was wrong about that!
The dollar has been so strong that even the Chinese renminbi has stumbled. The renminbi had been allowed to gain VS the dollar and got as high at 6.75… But this dollar strength has pushed back the renminbi to a 6.78 figure… (remember this currency is a European priced Currency so as the number goes higher, it’s losing ground to the dollar)
Even a rate hike by The European Central Bank last week hasn’t helped the euro from warding off the dollar bugs… Or, maybe it has, and the euro would be much lower without the rate hike… Either way, the euro is down right now…
And my favorites down under, the A$ and kiwi had been keeping up with the Joneses (the dollar) but that all changed overnight, and the two antipodean currencies are now just like the rest of them, down significantly VS the dollar… UGH!
Even the Swiss franc is seeing some weakness… Ever since the first missile was fired toward Iran, the Swiss franc has been strong… it’s still strong per se, but not as strong… And this is very telling…
The U.S. Data Cupboard doesn’t have anything for us today…. Tomorrow we’ll see the color of May Leading Economic Indicators, which have been negative for so long now that I expect the data to be negative again!
To recap… The dollar buying continues.. UGH! And overnight, the buying of the dollar got serious! Gold / Silver are being left for dead, and Chuck didn’t realize that many events had taken place in the last 8 years..
For What It’s Worth… when large casino banks make calls on assets I cringe, for most of the time they are wrong… But I tell you about them anyway, because maybe, just maybe they’ll be right… This is about a call from BOA that is obviously wrong, but they admit it, and state that the fundamentals are all in place. The article can be found here: Bank of America says gold can still hit $6,000, just not anytime soon | Kitco News
Or, here’s your snippet: “The Federal Reserve’s new tightening bias has created significant hurdles for the gold market, forcing one bank to curb its bullish enthusiasm for the time being.
When gold started its unprecedented rally last year, Bank of America was one of the most bullish voices in the market. In January, the bank said it expected gold prices to hit $6,000 an ounce by the spring. However, the significant correction over the last few months has prompted the bank’s metals research team, led by Michael Widmer, to revise its short-term outlook.
“Hitting our $6,000/oz target looks unlikely for now. But the ongoing U.S. macro combination of high deficits, lack of fiscal consolidation and resulting funding needs — the premise behind our original bullish gold call — suggests there is still fuel in the tank for gold to rally again over the longer term,” the bank said in its latest precious metals report.
Widmer explained that shifting expectations around U.S. monetary policy remain the biggest obstacle for gold in the near term. At the start of the year, markets were expecting the U.S. central bank to cut rates this year; however, the war in Iran, which has created a global energy crisis, has led to a dramatic increase in inflation pressures. As a result, markets have started to aggressively price in rate hikes before the end of the year.
According to the CME FedWatch Tool, markets see a more than 70% chance of a rate hike by September.”
Chuck again… So, if you are on the edge, thinking that Gold has topped out, maybe this article will help change your mind! Gold is to hold, not sell like a commodity unless there’s a dire need… I’m just saying…
Market Prices 6/23/26: American Style: A$ .6942, kiwi .5782, C$ .7048, euro 1.1393, sterling 1.3214, Swiss $1.2358, European Style: rand 16.4801, krone 9.7660, SEK 9.7031, forint 311.23, zloty 3.7593, koruna 21.2442, RUB 74.57, yen 161.59, sing 1.2958, HKD 7.8400, INR 94.73, China 6.7857, peso 17/48. BRL 5.1458, BBDXY 1222, Dollar Index 101.27, Oil $73.84, 10-year 4.49%, Silver $62.17, Platinum $1,638.00, Palladium $1,259.00, Copper $6.22, and Gold… $4,120
That’s it for today… Yesterday I thought I was doing some wishful thinking saying that all 4 of my grandkids were here… I was wrong as there were only 2 that were here… I must have thought all 4 of them were here! UGH! I’m currently reading: A Hitchhiker’s Guide To The Galaxy… It’s a good think that I’m older because this book is weird….. But I like it! My beloved Cardinals came home and beat the snakes last night in a tight game 3-2… Quicksilver Messenger Service takes us to the finish line today with their song: What About Me?
Chuck Butler