The Dollar gets ambushed overnight

• Currencies rally overnight on the Dollar selling.

• Where have all the senior traders gone? Stowe.

Good Day... And a Wonderful Wednesday to you! Pfennig tradition calls for this: Turkey for me Turkey for you Let's eat the turkey In my big brown shoe Love to eat the turkey at the table I once saw a movie With Betty Grable... Yes, and snippet from the funny man, Adam Sandler's Turkey Song.... Man was he young when he first sang that on SNL.... Vince Guaraldi greets me this morning with his song: Skating....

Well, after all the shenanigans from the price manipulators on Monday this week, yesterday was a watered-down version of a regular day in the markets without intervention.... The dollar found a bid early in the day, and gained 3 index points in the BBDXY yesterday, while Gold also found a bid, and gained $4 on the day to close at $2,634, and Silver gained 16-cents to close at $30.47... 

Ed Steer had his viewpoint on the "beyond egregious" routing of the metals on Monday.... Here's Ed: "This bear raid in the precious metals and WTIC had nothing to do with 'peace' -- and everything to do with final days of rolls/switches out of the December delivery month. The collusive commercial traders wanted to encourage as many long holders as possible to roll out of December instead of standing for delivery."

Chuck again... you know the media can't write or talk about short paper trading, so they come up with "reasons" for Gold's decline.... But people like Ed (and me!) can see these Engineered Takedowns for what they are and tell you all about them....  I'm just saying.... 

It was reported yesterday by Gold observer/ author, Jan Nieuwenhuijs that China secretly bought 60 Tonnes of Gold last month.... I bet they were happy as a lark that the price manipulators took a pound and a half of flesh from Gold on Monday..... Oh, well, timing is everything.... I used to tell a joke it goes like this: I'm a half-wit comedian, ask me what's the hardest part of my job, and before you can say, What's the hardest part of your job, I say, Timing! I'm sure it was no laughing matter to the Chinese on Monday.... 

On a sidebar.... China is working on getting the pricing and trading of Gold away from London and the U.S., to prevent things like Monday from happening....  I hope they succeed and soon! 

The price of Oil slipped another buck yesterday, and ended the day trading with a $68 handle... I already told you that it is being reported that Israel and Hezbollah are close to a peace agreement, and that has Oil getting sold.... 

The 10-year's yield inched higher to 4.30% yesterday.... Is the giddiness over new Treasury Sec. Beginning to fade?  

In the overnight markets last night.... Later in the letter today, I tell you about the data explosion that will take place today.... And overnight, traders got leery of all that data not signaling good times for the U.S., and so... The dollar got sold, and sold... The BBDXY has lost 8 index points to start the day today, and the euro is back to pushing the envelope, after last week when it was left for dead.... Again, I ask, is all the giddiness of the FNG, Bessent, passe now? It certainly appears to be.... The dollar will need some PPT Loving today.....  

The dollar selling didn't help the ruble, peso, or renminbi last night, as all three are getting the snot knocked out of them as I write.... The peso and renminbi I see getting sold because of the Tariffs that were announced, as being a done deal on Trump's first day in office.... The ruble has been getting the snot kicked out of it for over a month now, and that's after the Russian Central Bank hiked rates to 21% in Rocktober!  That's the highest interest rate in the world right now, and still the ruble gets no buyers.... Hmmm.....  

Gold is up $20 to start our day today.... And Silver is flat as a pancake (Head East).... Gold is back to pushing higher, and I'm hoping that the short paper traders have all taken off for Vermont to ski this long holiday weekend.... Yes, today will be skeleton crews on the trading desks... Mostly newbies, will little to no experience and strict instructions not to take any positions....

Match all buys and sells, are they walking orders today, and the same will be true on Friday this week.... So, from here I don't expect to see much movement the rest of the day...

The price of oil bumped higher to trade with a $69 handle overnight.... And the 10-year's yield was dropped like a hot rock overnight... The 10-year Treasury's yield is 4.25% this morning....

As far as the giddiness being over in the bonds markets for the FNG, Bessent, that appears to not be the case here.... The Bond boys are showing a deep love for this guy that is cut from the same cloth as they are.... And that's OK.... As long as the bond boys wake up soon.... 

In other news from last night, The Reserve Bank of New Zealand (RBNZ) cut their Official Cash Rate (OCR) 30 basis points, and pointed to how inflation is almost within their target rate of 1.-3%..... I would prefer that the RBNZ waited until inflation was well within their target.... As we've found out here in the U.S., inflation is sticky and just when you think you have it whipped, it rises up and bites you! 

OK... I found this story on Bloomberg.com this morning: "Coffee futures in New York climbed to the highest since 1997 on worries about crops in top growers, threatening to further raise costs for roasters and consumers."

Price inflation continues to rise, folks....  Got Gold? 

The good folks at Gata sent me this: "A former official for the Federal Reserve Bank of Richmond pled guilty last week to insider trading after he was caught misappropriating confidential information to execute trades.

The defendant, Robert Brian Thompson, 43, of Mosley, worked as a bank examiner and senior manager with supervisory duties for the Federal Reserve, giving him access to confidential information about financial institutions under the Fed's supervision, including confidential supervisory information."

Who can you trust these days? Certainly not the TV news people, not the print news people, not the Gov't and their agencies like the CDC, not politicians, and the list goes on, and on, and on.....  But when the people that you entrust to control the economy and its interest rates, use their position to put them in a better position financially.... The line has been crossed.... I'm just saying.... 

So, I read this morning that the price drop in Gold has really spurred interest in physical Gold.... Taking advantage of the cheaper prices, of course, who would have thought that would be an option? HA! You certainly know who kept preaching to you that these were excellent buying opportunities! I guess I could have hired a plane with a banner attached to it to fly around telling everyone that the time o buy was then! You know when I sit on the deck overlooking the beach at my place in S. Floriday, I see those kinds of planes flaying up and down the coast.... And I don't believe they work.... So, nix that idea Chuck.... I guess the Pfennig is the only way to get the word out and hope that the readers take note and even spread the word themselves.... One can hope..... 

I don't know why the schedulers do this but today will be datapalooza..... They moved the Weekly Initial Jobless Claims to today, so we get to see the color of that, along with: Durable Goods Orders for Rocktober, And Personal Income and Spending for last month... The first revision of 3rd QTR GDP will print, and bringing up the rear will be last month's PCE.... (personal cost expenditures), which the Fed Heads use as an inflation indicator... 

And in sidebar data.... There's this: What’s a good salary?: Axios’s Ben Berkowitz writes that “Boomers say it takes $100k a year to be financially successful, Gen Z says it takes $600k.” So, why the widespread difference? Timing, I believe is the key here.... The Boomers have been at their jobs for years and will work them until retirement and beyond for some, therefore they see that $100k a year is sufficed.... While The GenZ's only see themselves working a minimum of years, and therefore they see that $600k a year will do it....  Who's right? Oh, really, I don't care! 

To recap.... The markets breathed a sigh of relief yesterday, when the shenanigans of Monday didn't return in the markets... The dollar gained 3 index points, Gold gained $4 and Silver gained 16-cents yesterday... The Reserve Bank of New Zealand cut their OCR 30 Basis points, pointing to inflation nearing their target rate of 1-3%.... And Chuck wants everyone to state what they are thankful for tomorrow....

For What It's Worth.... This article came to me from the good folks at GATA, and they got it from Andrew Macleod's substack site.... I'll give you the link so you can go there and subscribe to his letter if you wish... 

Here's your snippet: "Judy Shelton is a well-known sound-money advocate and former economic adviser to President Trump. This month she set everyone buzzing with a proposal to issue a new 50-year Treasury bond redeemable in gold. If her plan is to be followed through, it would not be gold convertibility for the dollar but merely an alternative to inflation-linked TIPS bonds.

We can argue about how things for the dollar would evolve from there and the likelihood that this would be the first step to a new gold standard for the dollar, but that is a separate debate.

Anyway, dollar-centric Fed and Treasury officials would dismiss it as providing too much uncertainty to government financial obligations, because they would argue that gold is unpredictably volatile and they would not want to see a revived debate about its monetary role.

But there is a far greater problem in the background, and that is the integrity of the U.S. Treasury's gold reserves. Do they actually exist, and, if so, to what extent?

And here we come back to the findings of analyst Frank Veneroso more thqan 20 years ago.

Famously, in a speech in Lima, Peru, in 2002, Veneroso wrote:

"Now we have a conservative set of gold lending numbers and we have a more aggressive set of such numbers. Our range of estimates implies that somewhere between 10,000 and 16,000 tonnes of the official-sector gold position has left those vaults by way of the lending process."

Chuck again... Well, I haven't started reading it yet, but I did buy Judy Shelton's latest Book that Andrew is talking about above, so I'll be reporting on that in the future

Market Prices 11/27/2024: American Style: A$.6496, kiwi .5904, C$ .7120, euro 1.0572, sterling 1.2663, Swiss $1.1343, European Style: rand 18.1399, krone 11.0682, SEK 10.9039, forint 389.77, zloty 4.0744, koruna 23.9323, RUB 113.12, yen 151.32, sing 1.3482, HKD 7.7814, INR 84.45, China 7.2483, peso 20.73, BRL 5.8234, BBDXY 1,280, Dollar Index 106.12, Oil $69.12, 10-year 4.26%, Silver $30.48, Platinum $930.00, Palladium $980.00, Copper $4.15, and Gold.... $2,654.01.

That's it for today.... I keep track of my vitals (I have to) each day, and they have been quite good lately, ever since my blood levels got back to close to normal.... That was a space in time that I hope never returns... I've had quite a few of them in the past 17.5 years.... Ever since I was diagnosed with Stage 4 Cancer....  I stepped on the scale yesterday, and I am now at the lightest weight that I've seen in probably 30-35 years! I'm still attempting to lose more, so stay tuned! From today to the end of the year, I will find it difficult to lose any weight.... So, January 2025 I get back on the diet horse! Next week, Alex and Grace will be tying the knot, on Saturday Dec. 7.... Pearl Harbor Day! I can't believe that it's here already! I'm so proud of my 3 kids, they have all carved out careers, and are happy, and good natured.... Well, what are you thankful for?  Make sure you tell everyone tomorrow! Kenny G takes us to the finish line today with his version of the song: Silver Bells.... I hope you have a Wonderful Wednesday today, and a very Happy Thanksgiving tomorrow... And please.... Be Good To Yourself!