- Currencies & metals rally on Monday…
- But get sold again in the overnight markets!
Good Day… And a Tom Terrific Tuesday to you! No baseball for me last night, so I vegged out for the night. Kathy was gone, and the house was quiet, so I basically fell asleep, and stayed asleep the rest of the night! My mom would have called me “lazy bones”… But as I said many time in the past, I truly believe that your body tells you how much sleep you need… Triumph greets me this morning with their song: Lay It On The Line…
That’s what I do here every day that write! Lay it on the line! And we’ll see yet another example of that later in the letter today…
Well, all the dollar buying ended yesterday, and the dollar ended up giving back the overnight gain, and finishing the day flat at 1,262… Gold continued to pick up the pieces of its year-long rally, and gain $18 on the day to close at $2,311.20, and Silver gained 62-cents to close at $29.77….
It’s difficult to tell whether these gains in the metals were a result of a correction of an over-sell, or new buyers entering the market… I had read over the weekend that China didn’t buy any physical Gold in May… That could be a BIG reason why Gold floundered in May… Or, it could be the old saying for stocks, “buy in May, and go away”…
The price of Oil gained back $2 yesterday, and ended the day with a $77 handle… Again, it’s difficult to tell whether the gain was a correction of an oversell, or new buyers…
And the 10-year saw it’s yield drop 2 basis points on the day to close at 4.45%… The same question holds true here too…
In the overnight markets last night… The dollar buying returned… What’s going on here? Well, to me it confirmed that yesterday’s backing off of the dollar was merely an overbought correction, and then last night they picked the ball up and ran with it again. The BBDXY gained 3 index points overnight, and the currencies look like they are returning to their sick beds… The euro is still feeling the effects of having its deposit rate cut by the ECB last week, as is the Canadian loon having the same feeling…
I truly believe that these Central Banks (ECB, BOC) will rue the day they went ahead of the Fed/ Cabal/ Cartel in cutting interest rates… I guess we’ll have to wait-n-see, eh? Gold is getting sold as we start the day today, and is down $5, while Silver is down 54-cents… While these two metals showed signs of recovery yesterday, they just couldn’t hold on to it tightly… UGH!
Speaking of Silver… The great Silver Guru, Ted Butler, (no relation that I’m aware of) announced that he stop his research business as he deals with a health problem… I wish him good luck, good health, and a quick return to his business of tracking the Silver market. This news took me back to June 2007… When I was at home recovering from back-to-back cancer surgeries, and not writing… So, you see, I get it… And wish him well…
OK… Well, did you hear the news about Russia’s economy? You know the one that was supposed to be reeling by now after a couple of years of sanctions on them imposed by the U.S. and Europe? Well, last week, it was announced that Russia has now officially surpassed Japan for the 4th spot, according to the World Bank: Ok, it’s important to know that after China, the U.S. and India, the numbers aren’t very large… But to move ahead of Japan is HUGE… The news didn’t move the ruble any, so maybe I’m making a mole hill out of an ant hill… Maybe…
And I’m going long here, but what the heck? Remember Matthew Piepenburg? I used to use his entries on the vongreyerzgold.com site all the time… I think of him as the best thinker on markets that are out there… Well, he has a new, very long, comment on the website, and I’m going to point you there so you can carve out the time to read it… But first, here’s a snippet of this letter: “So, yes there is tremendous reason for informed and genuine concern, but rather than wait for the end of the world, it would be far more effective to logically prepare for a changing world.
Rather than debate left or right, black or white, straight or trans, safe or effective, smart (Barrington Resolution) or stupid (Fauci), we’d likely serve our individual and collective minds far better by embracing the logical and tabling the emotional.
Toward that end, we’d be equally better off relying on our own judgement rather than that of the children making domestic, monetary or foreign policy decisions from DC to Belgium…
Logically speaking, the USD (and US of A) is changing.
Like its recent swath of weak leadership, the greenback and US IOU are quantifiably less loved, less trusted, less inherently strong and well…far less than they were at Bretton Woods circa 1944.”
Chuck again… Here’s the link, enjoy! Gold & Oil: Understanding Rather than Fearing Change – VON GREYERZ AG
G. Edward Griffin the author of the great book: The Creature From Jekyll Island, a book about the beginnings of the Fed/ Cabal/ Cartel, has really gotten into exposing the Gov’t’s Central Bank Digital Currency (BBDB’s)… Here’s his lates post on them:
“Bankers and governments across the globe are pusing central bank digital currency (CBDC) that can enable totalitarian control over money and trade. Forbes Magazine explains why Sweden, China and the Eastern Caribbean are leading the race toward digital currency (and control).
And talk about CBDCs that provide authorities with unparalleled power to surveil, control, and manipulate the financial existence of billions of people.” From needtoknownews.com
Longtime readers will recall me telling you all about the Gov’t’s plan to introduce digital currencies to us when the next financial disaster unfolds… That was in May of 2020… Yes, it’s been 4 years, that the financial disaster has hung by the skin of its teeth, but its coming, I can feel it in the air tonight, oh Lord(Phil Collins) Yes, everything seems askew right now, on one hand people are flying and eating out like it’s the best of times, and on the other hand, more people are living from hand to mouth, and as Bill Bonner asked yesterday, what happens with the mouth is empty?”
That’s one of the reasons the short paper traders keep pushing back against gains in Gold & Silver… The short paper traders get their marching orders from the U.S. Gov’t, and the U.S. Gov’t can not let it appear that people are panicking and buying Gold… I’m just saying…
Longtime reader, Bob, sent me this link for a video on what’s going on with the BRICS… Check it out; 42 Countries Joining BRICS: What Next (youtube.com)
The U.S. Data Cupboard today has the Business Optimism report for May for us today, no biggie, and should be bang on April’s report… Tomorrow is the BIG DAY, a double whammy if you will with both the STUPID CPI and the FOMC meeting taking place…The FOMC will being their two-day meeting today, and the question I have for them is this: Who’s getting the game boards out?… I read a report yesterday, before falling asleep, that talked about how the FOMC will cut rates in July, and then 2 more times this year… I don’t know what that writer was smoking, and I don’t want any of it, but it must have been good! I’m just saying…
To recap… Monday was a day of correcting oversells in Chuck’ s opinion, with Gold & Silver attempting to pick of the pieces of their broken rallies that got whacked last Friday. The dollar stopped getting bought, and the price of Oil rebounded by $2 on the day. Chuck revisits digital currency, and talks about what the BRICS are up to…
For What It’s Worth… Well, this article explains why the plummeting prices of Copper prices & Oil signal a stressed economy and its well worth the read, and can be found here: Plummeting oil, diesel, and copper prices signal economic stress. Here’s why. – MarketWatch
Or, here’s your snippet: Some commodities can serve as barometers of economic activity, and the recent sharp declines in diesel, crude oil, and copper prices, along with signs of a demand slowdown in recent weeks, hint at a U.S. economy that has been struggling.
“With demand waning for commodities, this could be seen as an indication of weakness, which may suggest that the economy may be weaker than we may have thought,” said Katy Kaminski, chief research strategist at alternative investment manager AlphaSimplex.”
Oil and, by extension, diesel are barometers of economic health, said Ernie Miller, chief executive officer of Verde Clean Fuels.
And there have been visible signs of slowing demand growth for oil and diesel, which are “indicative of an economy that is struggling with high interest rates and slow growth,” he said. U.S. economic growth between the fourth quarter of 2023 and first quarter of this year slowed “dramatically.”
“Slowing demand growth for oil is the result of lackluster economic conditions and post-pandemic recovery that is running out of steam,” said Miller.”
Chuck again… That pretty much makes abundant sense to me… How about you?
Market Prices 6/11/2024: American Style: A$ .6584, kiwi .6122, C$ .7258, euro 1.0730, sterling 1.2740, Swiss $1.1050, European Style: rand 18.6959, krone 10.7130, SEK 10.5770, forint 368.02, zloty 4.0458, koruna 23.0442, RUB 89.19, yen 157.10, sing 1.3533, HKD 7.8100, INR 83.67, China 7.2544, peso 18.35, BRL 5.3499, BBDXY 1,265.66, Dollar Index 105.35, Oil $77.61, 10-year 4.44%, Silver $29.23, Platinum $957.00, Palladium $893.00, Copper $4.45, and Gold… $2,306.56
That’s it for today… 48 years ago, t was a blazing hot day, I was rushing about, taking my car to the Car Wash, picking up my tux, and getting a hair cut, for the next day, I was to get married… And that night, I sat on my parents front porch with my two best friends, Mike & Robin, and my mom joined in to listen to our stories of the crazy things we did as teenagers… It was my last night of being a bachelor… 48 years ago… WOW! I was remiss in forgetting about Dawn’s husband, Jerry, last week, as he turned 44! Happy belated Birthday, Jerry, I hope your day was grand! Van Morrison takes us to the finish line this morning with his mega hit song: Moondance… I hope you have a Tom Terrific Tuesday today, and that you will Be Good To Yourself!
Chuck Butler