- the dollar rebounds on Tuesday, but Gold & Silver ignore the dollar move
- Chuck gives the Bank of Canada a memo…
Good Day… And a Wonderful Wednesday to you! Well, it did indeed look as though my beloved Cardinals were dragging the line in Monday’s game, as their bats returned last night, and they beat the Reds 7-1… I love it when the team plays in the Eastern Time Zone, as the games end at a decent hour for me! Bill Withers greets me this morning with his song: Lovely Day…
I don’t know if today will be lovely or not, but it will have a tough row to hoe, to be better than yesterday, for yesterday was just simply beautiful!
The dollar bugs were singing about it being a lovely day for sure, as the dollar got bought and recovered its two-days of losses late last week… The BBDXY ended the day at 1,250, thus, up 4 index points on the day. The euro backed off of its high in the 1.08 figure, and all the rest of the currencies backed off their recent levels too.
Gold though forgot about the dollar strength, and gained $9 on the day, to end the day at $2,362.00, and Silver gained 41-cents to end the day at $32.12… A good showing for the metals yesterday… But… as always, the short paper boys were hanging around, and they certainly put a cap on the metals gains yesterday… Who knows where Silver would have ended up if it had been left alone… I’m just saying…
I said yesterday that it would be interesting to see if the bond boys continued to take the 10-year’s yield higher… And at least for one day, they did take it higher, with the 10-year’s yield at 4.56% at the end of the day.
An the price of Oil gained another buck yesterday, and finished the day with an $80 handle… I still don’t get why the price of Oil was taken to the woodshed last week, only to recover quickly and even go higher than it was before!
In the overnight markets last night… Well, somebody has an axe to grind with the metals as we start today… Gold is down $19 and Silver is down 19-cents… The dollar hasn’t moved from yesterday’s close at 1,250, so it’s not a dollar is king thing that’s moving the metals this morning. I have to think that it’s another short paper event… I’ll know more as the day goes on, and report on it tomorrow…
Copper is down again this morning, I guess the Copper Traders are getting a taste of what Gold & Silver have had to endure these years as they got more interest by investors, they would get the snot knocked out of them, and now the short paper traders have turned to Copper… UGH!
The price of Oil remained trading with an $80 handle overnight and the 10-year’s yield is at 4.47% to start the day today…
I was reading an article this morning, about the Bank of Canada and how the Canadian markets are wishing, and hoping and praying for a rate cut soon from the Bank of Canada (BOC)… The Bank has meeting scheduled for June 5, and then in July and September… Right now the markets have their eyes focused on the September meeting for a rate cut… That’s why the Canadian dollar/ loonie, is teetering as we start our day today…
I’ll just say this, and if this sounds like a broken record, then move the needle and go on… But what the markets are seeing with inflation in Canada, is much like we’ve seen in other countries… Inflation drops, and then ceases to drop further… and eventually inflation comes back stronger…. And if a Central Bank had not been patient, and cut rates early, they would be dealing with even stronger inflation… So, there’s my memo to the Bank of Canada… Don’t be fooled!
I’ve mentioned Australia a couple of times in recent Pfennigs… So, in keeping in that vein… Australia is seeing the same kind of data in their country as the U.S. is seeing… For instance, last week Retail Sales slowed in April thus signaling a slowing economy… and that could mean a rate cut, but then yesterday, April inflation rose, marking the second consecutive month a rising inflation and thus pointing to keeping rates unchanged or maybe even raising them! What to do, what to do? I think the Reserve Bank of Australia will remain vigilant about keeping rates high to combat inflation, and that would mean that the A$ buyers are warranted int pushing the A$ higher…
And news this morning that the Peoples Bank of China is jawboning the renminbi higher, or at least attempting to… I don’t know if you’ve noticed in the currency roundup that the renminbi has been slipping on a daily basis, and things in China are back and forth with the economy… But the Peoples Bank of China said, “don’t worry be happy” (not really, I said that), but the Peoples Bank did say that the renminbi would be recovering shortly… Hmmm… Makes you wonder doesn’t it? I’m just saying…
Before I head to the Big Finish today, I wanted to stop and say that I was saddened to hear that Bill Walton had died… I was a HUGE fan of Bill Walton ever since he scored 43 points in the NCAA Championship game in 1973 in St. Louis! Bill was only 71 years old, when he passed away, and that’s way too young in my book! RIP Bill Walton…
The U.S. Data Cupboard only has the Fed’s Beige Book on the docket today, and that’s not enough to move markets… Tomorrow, we will see the GDP revision that I talked about yesterday.
To recap… The dollar rebounded on Tuesday, and recovered the losses it took late last week. But Gold & Silver didn’t care if the dollar was rallying, as they kept on the rally tracks themselves… Chuck can’t figure out why Oil traders took the price of Oil lower last week, only to see it rebound and recover this week?
For What It’s Worth… Well, guess who would be considered a Gold Bug now? None other than the guy behind the movie the “Big Short”, Michael Burry… His entry into the Gold market and more can be found here: Michael Burry and John Paulson hit the jackpot when they called the housing crash. Now they’re betting on gold. (msn.com)
Or, here’s your snippet: “It turns out Michael Burry isn’t only a metalhead when it comes to music.
The investor of “The Big Short” fame purchased about 441,000 units of the Sprott Physical Gold Trust last quarter. The trust holds virtually all of its assets in physical gold bullion.
Burry’s Scion Asset Management revealed its first-quarter holdings in a regulatory filing this week.
The gold bet was worth $7.6 million at the end of March, ranking it as Scion’s fifth-largest position with a 7.4% weighting in the firm’s $103 million U.S. stock portfolio.
If the wager remains intact, it was valued at $8.1 million as of Friday, per Sprott’s bullion calculator.
Buying gold is a surprising move from Burry, a value investor known for sniffing out dirt-cheap stocks — including GameStop years before it became a meme stock.
He’s also bet against high flyers like Elon Musk’s Tesla, Cathie Wood’s Ark Innovation ETF , and a microchip ETF that counts Nvidia as its top holding.
Burry shot to fame for predicting and profiting from the collapse of the mid-2000s housing bubble.
The saga was chronicled in the book and movie “The Big Short.“
John Paulson made his name with a similar wager, immortalized in a book titled “The Greatest Trade Ever.” Like Burry, the Paulson & Co. chief appears to be bullish on gold and other precious metals.”
Chuck again… Well, it took them long enough to get on board the Gold train didn’t it? At least now they are a part of Gold’s rise, and brings me to my usual question: Got Gold?
Market Prices 5/29/2024: American Style: A$ .6632, kiwi .6128, C$ .7315, euro 1.0856, sterling 1.2754, Swiss $1.0957, European Style: rand 18.3267, krone 10.5164, SEK 10.6251, forint 356.50, zloty 3.9277, koruna 22.7785, RUB 89.49, yen 157.20, sing 1.3497, HKD 7.8116, INR 83.34, China 7.2494, peso 16.82, BRL 5.1749, BBDXY 1,250.50, Dollar Index 104.69, Oil $80.39, 10-year 4.47%, Silver $31.93, Platinum $1,045, Palladium $956.00, Copper $4.79, and Gold… $2,341.70
That’s it for today… I’ve been bringing coffee and food to the door and leaving it for Kathy to grab after I’ve gone away… She doesn’t sound very good, but as I said the other day, give her about 3 days and she’ll be good to go! I will be amazed if she’s not good to go by then! So far, so good, with regards to keeping me from getting sick… cross my fingers! Cards and Red play a get away day, game today at noon… My arm where I tore the skin off of two weeks ago, has finally stopped bleeding… UGH! The Moody Blues take us to the finish line today with their song from the Seventh Sojourn album: New Horizons… I hope you have a Wonderful Wednesday today, and please Be Good To Yourself!
Chuck Butler