Gold rebounds despite the weight of price management

Good day… And a Wonderful Wednesday to you! Well my first day here in my winter home was really awesome… The sun was full in the sky, the temperature was warm, a light breeze was blowing, and I took my place on the deck overlooking the ocean. , and after inserting my air bubbles, I started to read my next book… I am still fighting against this nasty cold, and I have in mind that the hot sun will help me to cure myself of this cold blood! Please don’t tell me I’m wrong, because I have in my head that it makes me feel good, and that’s it! The group, Yes, greet me this morning with their song: Yours Is No Disgrace…

This song should be played over and over on volume 10 to the ear of Fed / Cabal / Cartel Chairman Jerome Powell… To make him think he’s not responsible for the spike in inflation, and then maybe, just I know, he would do the right thing, here, now, if he thinks the other kids won’t laugh at him for letting the inflation get out of hand… You see how I got it. come full circle there? Bet a sec there you thought I got soft and fluffy Teddy Bearish on you! Certainly not!

So… Monday we had price engineered metals and currencies withdrawals… Then Monday night before Tuesday morning, we saw the dollar sell off again… Mass confusion, eh? Well, yesterday was a little weird, we saw gold and silver rally together, as the dollar fought back and regained the title belt… It still seems quite strange to me, that the dollar rallies, in at the same time as gold and silver rally …

There was still some management of metal prices during the day. As gold was higher at one point in the day … But gold still gained $ 13 on the day to close at $ 1,815.40, and silver gained 16 cents to close at $ 23.13 … The price of oil has risen again and is now trading with a $ 77, and there was some disheartening news yesterday in the oil industry … Apparently 2021 has been a very bad year for the discoveries and the recovery of oil … well when you denigrate the oil people and tell them that they are responsible for global warming and what have you, what do you expect them to do, to go crawl under a rock and hide? I say it like that …

The country was built on oil, folks, look at everything that runs on fossil fuels, and how would we have come to this without them? And then you decide you don’t want it anymore? Leave me alone! What moron decided this would be a good idea?

The BBDXY started the day at 1,173 and ended the day at 1,179… A HUGE jump in the dollar higher… For what reason? Well if you read the articles like everyday except when traveling or on vacation you would read that forex traders see the increase in the 10 year Treasury yield as the reason to buy dollars …

So, let’s take a look at this for a moment… The 10-year Treasury yield is rising due to the response of rising inflation, and don’t lose sight of the fact that there are fewer and fewer buyers. bonds, and therefore yields must rise to attract investors. So, do any of these reasons seem like a reason to buy the dollar? A rising yield that needs to increase by more than 15 BPS to reach neutrality with inflation doesn’t seem to cut it off… But I’m a cautious investor, and I don’t like holding negative yielding investments ,?

In the overnight market last night… Once again the dollar bumped into sellers in the overnight markets, the euro again exceeded 1.13 and all other currencies looked stronger at the start of the day. The BDDXY fell to 1,177, and they just don’t think it’s going to be a good day for the dollar, but there is still the PPT to back it up…

While I was on vacation we saw quite a few retail sales, which I explained as being tampered with by pre-Christmas shopping. But the number kept eating my brain, and I was so close to explaining what was going on, it was at my fingertips, but … so I couldn’t explain it, and not before seeing @econoguyroise (David Rosenberg), explain it on Twitter that I finally got my slap on the head from the V8 moment… So let’s turn to David Rosenberg on Twitter, and see what he’s doing. had to say on the retail sales issue: “It’s almost comical to see everyone gushing out. Mastercard data shows + 8.5% year-over-year holiday sales from depressed levels a year ago a year. Go back on your math since we already know November spending activity and that means a sequential drop in MoM retail sales for December! -David Rosenberg

OK, back to normal programming… Yesterday I left you hanging, and I apologize… halfway through Pfennig yesterday, I told you that the price manipulators’ plans had worked perfectly and that I would come back to explain later in the letter… And then the crickets… So, there you go… Basically, it’s their price manipulation plan A…. You lower the price of gold (silver) to a level that makes it attractive again, then they reverse the price and buy at those cheaper levels…. Now they watch it go higher because that’s what gold should do, and once it gets to a level that gives them a big profit, they start selling short again, locking in their profits, and starting over. so the game …

So, did you hear that POTUS mentioned the other day that they finally understood that grocery store prices were becoming inflationary? I don’t make this stuff up, now other people can make it up, but for me it’s a comic relief… So take with as many grains of salt as you want…

I really don’t believe most of what I hear, or read these days, and trust me, I hear and read a lot! And I certainly don’t believe an economic report from Washington DC And that brings me to the next Job Jamboree this week… Remember that the November job tally by the BLS only created 210,000 new jobs for this week. the month, which was well below expectations. And as if by magic, December’s expectations are double the November tally… 420,000 newly created jobs are expected, but they don’t tell you what types of jobs will be created… nor how many jobs will be added to BLS surveys. for the end the total? And frankly, we couldn’t have had a disappointing two months in a row in the labor markets, right? It will not happen, not under BLS supervision, it will not happen!

Yesterday’s US Data Cupboard has the December ISM (manufacturing index) and although it remains above the 50 line, line in the sand, figure, it dropped significantly in December, falling at 58.7% vs. 61.1% … in a bad way, folks … I’m just saying …

Today’s data cabinet has the ADP employment report for December, and we’ll see the color of the FOMC meeting minutes from their last meeting. There shouldn’t be any surprises with the minutes, and I expect them to go unnoticed this afternoon.

To recap… It was a strange day for currencies and metals yesterday… The dollar rebounded strongly throughout the day, as did gold and silver… Chuck reflects on his thinking about the rate hike to 10 years, and why it’s not also a good thing that dollar buyers would have you believe. And in the markets overnight….

For what it’s worth…. This is a very interesting article in that it reviews the dollar’s loss through ownership, and its place in the world, and how central banks around the world continue to build up their reserves. physical gold, and it can be found here: Countries accelerate abandonment of US dollar – RT Business News.

Here’s your excerpt: “Gold holdings in central bank foreign exchange reserves have grown around the world, reaching a 31-year high this year. At the same time, holdings of US dollars fell.

According to the World Gold Council, banks have accumulated more than 4,500 tons of inventory over the past decade. In September, reserves totaled some 36,000 tonnes – the largest transport since 1990, and a 15% increase from the previous decade.

At the same time, the dollar’s presence in foreign exchange reserves has declined sharply over the past decade. In 2020, the greenback’s currency-to-currency ratio plunged to its lowest level in a quarter of a century.

Analysts say central banks, especially in emerging economies, are continuing their shift towards gold, reflecting global concerns about the dollar-based monetary regime. In the first nine months of 2021, Thailand bought some 90 tonnes, India 70 and Brazil 60.

Central banks and public institutions began to increase their holdings of gold after the 2008 global financial crisis, which caused an outflow of US government bonds, leading to a decline in the value of dollar-denominated assets.

Confidence in dollar-denominated assets has thus “faltered”, said market analyst Itsuo Toyoshima, quoted by Nikkei Asia.

Chuck again… There are two points here to take into account… That central banks continue to add to their physical gold reserves, and notice that they are not buying Bitcoin, and two… That even as strong as the dollar has been so over the past 10 years, it is still losing ground in foreign ownership… Doesn’t that mean that these countries do not trust the dollar?

Market price 01/05/2022: American style: A $ .7253, kiwi .6819, C $ .7859, euro 1.1312, sterling 1.3545, Swiss $ 1.0819, European style: rand 15.8266, krone 8.8208, SEK 9.0599, forint 320.32, 4.0348 zloty, 21.7286 kronor, RUB 74.95, 115.79 yen, chanter 1.3553, HKD 7.7947, INR 74.33, China 6.3539, 20.43 peso, BRL 5, 6797, BBDXY 1,177.60, Dollar Index 96.14, Oil $ 77.19, 10 years 1.65%, Silver $ 23.00, Platinum, Palladium $ 1,997.00, Copper $ 4.40 and Gold. . $ 1,819.00

That’s all for today… Well, the results of last weekend’s CFP games did not surprise me or should have surprised me for anyone who actually follows the teams and their games. So now we get a rematch of the SEC championship game, for the national title. Alabama VS Georgia… Alabama handled Georgia easily in their first game, but I always thought it was hard to beat a team twice in a short period of time (in football, that is. say) scoring game… There is still no progress in the baseball talks… They better get off their high horse quickly and get down to work on this new deal before it becomes a real one. problem for the sport… My St. Louis U. Billikens won his A -10 opener Sunday VS Richmond… The Billikens lost their leading scorer before the start of the season to injury, and now they are learning to play without his prowess. scorer… And this is the last week of the NFL regular season, there are still a few more playoff spots to be determined. Johnathan Edwards takes us to the finish line today with his song: Shanty… “Because we’re going to lay around the Shanty, Mum, and put a good buzz”… Hope you have a Wonderful Wednesday today, and please Be Good To Yourself, and Remember Be Positive, Test Negative!

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