- currencies & metals get sold on Tuesday…
- Packing up the truck and moving to Beverly Hills…
Good Day… And a Wonderful Wednesday to you! My beloved Cardinals bounced back last night VS the Orioles and will play the rubber game of the series tonight… Next stop… Arlington, to play the Rangers… I was all alone last night, and decided that I wouldn’t eat dinner, just have a snack, which has my stomach talking to me this morning, saying” Feed me”… HA! The Cure greets me this morning with their song: Lovesong…
Well, when I left you yesterday morning, the dollar was in the rally seat, with the BBDXY up 4 index points, thus pushing down the mini rally that the currencies had put together late last week. But just as the day of trading was coming to a close, the dollar gave up some ground, and ended the day up just 1 index point to 1,211…
The talk of delaying the EU tariffs until July got traders thinking that they might not come at all, given the time between now and then to negotiate a better trade deal… The Donald giveth to Gold, the Donald taketh away from Gold… Gold lost $41 yesterday, to close at $3,301… So, Gold was down $60 early yesterday morning, and rallied a bit to get back to $3,300… Silver lost 19-cents to close at $32.31…
Last week the POTUS announced new tariffs, and Gold rallied, and then 5 days later he announced a delay in the tariffs until July, and Gold got sold… Well, there was the usual participation by the short paper traders in Gold… But they have been in there just about every day since well, for a long time. So much so, that we all just assume that they are there each and every day, keeping a lid on Gold (& Silver) just for GP…
The price of Oil remained trading with a $61 handle throughout yesterday, and the 10-year saw some buying and its yield drop to 4.46%… Not a lot of buying and not a lot of yield drop either! But there was some nonetheless…
In the overnight markets last night… The dollar was the currency of choice by traders, and they really liked the dollar! The BBDXY is up 6 index points this morning at 1,217… Here we go again with the dollar getting bought because the POTUS has flipped flopped on his EU tariffs… This delay in the tariffs to July, has got me thinking that the time period between now and July is going to be used to negotiate a better trade deal, for if it’s not, then all this dollar buying will have to reversed in 2 months… Or, probably before then if it appears there are no negotiations ongoing…
Gold is up $9 to start our day today, and Silver is down 15-cents. Gold had to do a lot of fighting yesterday to get back to $3,300 after falling below that figure during the day. Gold fought back through $17 of loss to get to $3,300… but… at one point of the 24-hour day, Gold was $56 dollars higher… That’s a $73 dollar swing, that was caused by the short paper traders…
Speaking of Gold… The governors of the states of Missouri and Florida both have signed bills making Gold and Silver legal tender in their respective states.. Good for them! That makes 11 states that have made Gold & Silver legal tender… here’s something I found on Ed Steer’s letter this morning that really illustrates how Gold has performed… you can find this at www.edsteergoldsilver.com Here you go… “”If you bought a home in 1979, the average cost was $75,000; those were the days,” said Rep. Doug Bankson. “If you bought that same home, that same product, now it would be $531,000. However, if you had bought that in gold in 1979, it would’ve been 268 ounces. Today, if you bought that home, 268 ounces. Why? Because it’s a tangible thing that has true value.”
Goes to show ya, that it’s the dollar that has dropped VS Gold… I’m just saying…
Well, The Fed/ Cabal/ Cartel chairman, Jerome Powell, isn’t just getting slammed for not cutting rates from the POTUS, but he’s also getting it from the head of the housing Agency… Here’s the skinny from: The Hill.com “The director of the Federal Housing Finance Agency (FHFA) took to social media Monday to tell Federal Reserve Chair Jerome Powell that it’s time to resume the central bank’s interest rate cuts.
“Jay Powell needs to lower interest rates — enough is enough,” he wrote. “President Trump has crushed Biden’s inflation, and there is no reason not to lower rates. The housing market would be in much better shape if Chairman Powell does this.”
Chuck again… Yes, Mr. Housing Director that would help your business now, wouldn’t it? But what would it do to fuel the fire of inflation? Sure, Housing is a BIG DEAL in this country, but inflation would carry a Bigger Stick and affect everyone that’s not a part of the 1%… That’s far too many more affected people than are looking to buy a house!
I could be like this guy and say that interest rates need to be cut to help Gold reach higher levels.. But I don’t, and won’t, because I know what comes behind a rate cut…
Speaking of rate cuts, the Reserve Bank of New Zealand (RBNZ) did announce a rate cut of 25 basis points to 3.25%… They cited that inflation was 2.5% in the 1st QTR, which is smack dab in the middle of the 2-3% inflation target range… But the thing that bothers me about this rate cut is the fact that inflation rose in the 1st QTR to 2.5% from 2.2%… So, inflation is on the rise, and you decide to cut rates… Well, these are not the RBNZ that was once run by Don Brash! Now that was a Central Bank Gov. That understood how inflation is sticky and unless you beat it death, it will come back with a vengeance!
Well, the Housing Director wasn’t the only person gaining an ear (the media) guy out there calling for rate cuts here in the U.S. a veteran stock picker who has been navigating the market since the 1980s, is the founder of Navellier & Associates, a firm with about $1 billion in assets under management. Is calling for rate cuts… Louis Navelier is on record now, saying that he’s not afraid of inflation…
Ok, I made that last part up about what said about inflation… But when you look at anyone calling for rate cuts, what they’re saying is that they are not afraid of inflation! Plain and simple… I’m just saying…
Reuther.com reported yesterday that the European Central Bank (ECB) President, Christine LaGarde was speaking yesterday, and this is what she said, ” The euro could become a viable alternative to the dollar, earning the 20-nation bloc immense benefits, if governments could only strengthen the bloc’s financial and security architecture, “
Well, while we’re talking about the euro, to compete with the dollar was the main reason the architects o the euro came up with the idea…
Chuck again… Sure it would take years to gain this competition, but by becoming the offset currency to the dollar after about 10 years of existence, the euro remains the offset currency to the dollar, and that keeps them ready and willing to take over the dollar’s reign, when the time comes for the U.S. Empire’s dollar hegemony to be over…
The U.S. Data Cupboard yesterday, had the April Durable Goods Orders, of which I said would be disappointing, and it was as it printed at negative – 6.3%… but given the spin doctors this was perceived by the markets as “good” because it beat the expectations for a -7.8%… And The STUPID Consumer Confidence soared higher from 86 to 98… And why were these people that were polled so confident? Apparently they asked people that had been living under rocks, because there was no reason on earth for them to be Confident!
Today’s Data Cupboard only has the FOMC Meeting Minutes from their last meeting… As usual the wordsmiths of the world will be going of the Minutes with fine-toothed comb to see if there are any hints in there of what the Fed Heads are thinking of… Hey! They’ve got one job to do! Don’t laugh at them!
To recap… The day started with the dollar in rally mode, but by the end of the day the rally was pared down to just 1 index point in the BBDXY… But Gold couldn’t find a bid yesterday and lost $41 on the day… Most of the media pointed to the announcement of a delay in the tariffs for the EU until July… This is a rerun of the events that took place after the Chinese tariffs were delayed 90 days… memo to the markets: This is a delay, not an ending of the tariffs… you might want to curb your enthusiasm a bit…
For What It’s Worth… The Good Folks at GATA sent me this article that’s about how the really rich folks are storing their Gold in Singapore and it can be found here: The ultra-rich are moving gold to Singapore as global risks mount
Or, here’s your snippet: “The ultra-wealthy are increasingly moving their gold offshore as economic and geopolitical uncertainty roils markets — and Singapore is emerging as a favored destination.
Not far from the city-state’s airport sits a six-story facility covered in onyx and fortified by tight security. Tucked behind its steel doors are gold and silver bars amounting to about $1.5 billion.
Known as “The Reserve,” the storage facility features scores of private vaults and a towering storage chamber lined with thousands of safe deposit boxes reaching three stories high.
From the start of the year to April, the precious metals repository has received an 88% increase in orders to store gold and silver in the vault from the same period in 2024, said its founder, Gregor Gregersen. The Reserve, which also sells gold and silver bars, saw sales for precious metals bars skyrocket 200% year on year in that time, data provided by The Reserve showed.
“A lot of very high net worth clients are looking at tariffs, looking at the world changing, looking at the potential of geopolitical instabilities,” Gregersen told CNBC.
“The idea of putting physical metal in a safe jurisdiction like Singapore with parties they can trust is becoming a big trend nowadays,” he said, adding that 90% of the new orders are coming from outside of Singapore.”
Chuck Again… yeah, who can blame them for moving their Gold holdings to Singapore? The problem with this as I see it is how long will it take to have the Gold sent back if the holder needs it? B7t I can’t get this picture out of my mind, of the Clampets loading up the truck to move to Beverly Hills!
Market prices: 5/28/2025: American Style: A$.6438, kiwi .5988, C$ .7231, euro 1.1315, sterling 1.3472, Swiss $1.2088, European Style: rand 17.9171, krone 10.1879, SEK 9.6108, forint 356.14, zloty 3.7456, koruna 22.0257, RUB 79.56, yen 144.43, sing 1.2873, HKD 7.8382, INR 85.36, China 7.1949, peso 19.28, BRL 5.6187, BBDXY 1,217, Dollar Index 99.72, Oil $61.51, 10-year 4.44%, Silver $33.20, Platinum $1,097.00, Palladium $977.00, Copper $4.76, and Gold… $3,310
That’s it for today… I got outside yesterday to read, for the first time In 3 days… The weather here in recent days has been yucky… and conducive to sitting outside… I think the rest of the week is supposed to warmer with more sun… I’ve got my fingers crossed! I’m going to lunch today with my classmates… I’m excited to see them, as I haven’t seen them since December… We’ve tried to meet up each month and I seem to be the one that misses most of the meetings! UGH! I still am not able to drive myself, because of my vision, so I have to be picked up! But hopefully that will all change on June 9th, when I go for cataract surgery… J.D. Southern takes us to the finish line today with his song: You’re Only Lonely… I hope you have a Wonderful Wednesday today, and please Be Good To Yourself!
Chuck Butler