The Dollar gets sold again, overnight

• Currencies & Metals start the day on a good note.

• Unknowns, Are what makes the Dollar weaker.

Good Day... And a Tom Terrific Tuesday to you! Well, my well laid plan to get outside in the sun yesterday, had to wait until 2PM, as I fell asleep as I did my compression pumps on my legs.... And would have slept all day, if I didn't get a phone call waking me up.... I think my cold that I had been fighting is gone, and I haven't taken any cough medicine in two days! So, back to me! I haven't really been myself for a couple of weeks now, but I'm now ready to let loose! The Alan Parson's Project greet me this morning with their song: Eye In The Sky....

Well, the overnight markets on Sunday night are a thing of the past now, as in the U.S. session, the dollar rebounded by 4 index points in the BBDXY... So, with no follow up in the U.S. session to the overnight selloff, we have to believe that the dollar rally will continue now.... UGH!  

Gold turned the morning weakness into a $10 gain on the day, thus closing at $2637.10, and Silver kept up the pressure on the Silver shorts by gaining 32-cents on the day, thus closing at $30.00 I'm sure that Silver would have moved even higher, but the short paper traders made sure it didn't pass $30.00. Lola, aka Goldman Sachs issued a report saying " that it no longer expects the gold price to reach $3,000 per ounce by the end of 2025, with the Federal Reserve’s shallower rate cut path pushing the forecast to mid-2026."

So, Lola says the Fed Heads won't be cutting rates as much as previously thought, and therefore Gold's price rise to $3,000 will be delayed.... Well, I don't know why it would be delayed for lack of rate cuts.... Gold started 2024 around $2,050, and ended 2024 around $2,650.... So, Gold didn't need two FOMC rate cuts to gain $600 in 2024, why would it need it to gain $400 in 2025?  I'm just saying.... 

The price of Oil slid back to the $73 handle yesterday, and the 10-year bumped up to 4.63% during the day, but settled at the close at 4.61%... 

In the overnight markets last night.... The BBDXY is down 2 index points to start the day today... In the middle of the night, I couldn't sleep, and looked at the BBDXY and it was down 4 index points, but apparently, that was too much.... The euro trades with a 1.04 handle this morning, to prove my point about how when the dollar gets sold, it doesn't matter what the economic fundamentals are in the Eurozone, the euro will be the beneficial of the dollar weakness.... We had started the week with the euro at 1.02 and talk of it going to parity with the dollar... Well, that talk has faded for now, and as long as the dollar continues to grow weaker, the talk will fade completely... 

Gold & Silver are starting our Tuesday on a flyer! Gold is up $22 to start the day, and Silver is up 32-cents... Thus, passing the $30 level in Silver, which is not going to go over big with the short paper traders....  

The price of Oil remains trading with a $73 handle, as lack of supply is helping Oil to keep this high... And the 10-year Treasury's yield has bumped higher to 4.64% this morning... 

Well, here's some real upbeat news (NOT!) U.S. Credit Card delinquencies increase last quarter to a very high level.... So, that explains the uptick in Retail Sales, but was it done with borrowed money that is now being late being paid back? Why, yes it was.... the largest number of delinquencies in a very long time....

So, that pretty much tells you that the U.S. Consumer is resorting to borrowed money to buy stuff.... Uh-Oh! 

Well, the news from up north says that the Canadian PM Trudeau has resigned from office... I read where his approval rating was 65% when he took office in 2015 and was only 20% now.... The Canadian dollar/ loonie didn't fare badly, in fact it rallied a bit to 70-cents since the news broke... 

Circling the wagons back to the U.S. dollar.... It seems that the weakness we've seen this week is in response to the tariffs report that the new POTUS to be, put out Sunday.... There are just too many unknowns on how this will all take place and work, and what have I taught you about traders all these years? They don't like unknowns, and so the dollar weakens.... I don't believe that this is something that will last, and so we can't hang our hat on the weakness continuing, although that would make sense if it did.... I'm just saying....

At the moment, all markets are in a wait-n-see what happens when Trump takes the reigns.... This won't last long, as the inauguration data is near, and then it will all be on display for the markets to see what direction they are going to take.... 

And circling back to Silver this morning, here's something that I came across: Analysts project that there was a fourth straight supply deficit in the silver market, meaning there was more silver consumed than was pulled out of the ground or reclaimed through recycling. This market deficit is expected to come in at around 182 million ounces. A supply crunch is what is needed for Silver to catch up....  

The U.S. Data Cupboard yesterday had the Nov. Factory Orders of which, I said would print negative, and voila! They did print negative.... -.4% No wonder the Purchasing Managers Index remains below 50.... Today's Cupboard just has the Job Openings, which should remain around 7.7 Million.... The data cupboard has been lacking lately, and I'm not sure why that is....

To recap... The dollar rallied on Monday in the U.S. but then got sold again in the overnight markets last night. Chuck believes the weakness is from the unknown of what the new Trump administration will bring the markets.... Gold & Silver are on the rally tracks this morning... And Chuck reports that there is a supply lack in Silver.... The Canadian PM resigned, and the Loonie rallied!  

For What It's Worth.... Well, I kept telling you last year that Central Banks around the world sans the Fed/Cabal/Cartel, were buying boat loads of physical Gold.... 

Here's your snippet: "The US dollar lost further ground as global reserve currency among many reserve currencies held by central banks. Its share has been zigzagging lower for many years as central banks have been diversifying their holdings to assets denominated in currencies other than the dollar. And they’ve also been diversifying into gold. But the dollar remains by far the dominant global reserve currency.

The share of USD-denominated foreign exchange reserves fell to 57.4% of total exchange reserves the lowest since 1994, according to the IMF’s COFER data for Q3 2024. USD-denominated foreign exchange reserves include US Treasury securities, US agency securities, US MBS, US corporate bonds, US stocks, and other USD-denominated assets held by central banks other than the Fed.

In Q1 2015, the USD’s share was still 66%. Over these 10 years, the dollar’s share of global reserve currencies has dropped by 8.6 percentage points. If this pace of decline continues, the dollar’s share will fall below 50% in less than 10 years, by the end of 2034."

Chuck Again.... yes, this is how it all begins.... The dollar loses its hold on Central Bank reserves, and then it falls out of bed....

Market Prices 1/7/2025: American Style: A$ .6282, kiwi .5678, C$ .7092, euro 1.0402, sterling 1.2643, Swiss $1.1029, European Style: rand 18.5633, krone 11.2884, SEK 11.0319, forint 398.41, zloty 4.9840, koruna 24.1616, RUB 107.00, yen 157.86, sing 1.3611, HKD 7.7772, INR 85.72, China 7.3264, peso 20.33, BRL 6.0732, BBDXY 1,302.33, Dollar Index 108.13, Oil $73.92, 10-year 4.64%, Silver $30.32, Platinum $961.00, Palladium $934.00, Copper $4.20, and Gold.... $2,669.44.

That's it for today... Sorry about the tardiness of the letter the last two days... I find that waking up to the alarm doesn't agree with me any more.... So, you can expect to see this letter a little later in the morning from here on out.... I don't like that, but it is what it is.... I find myself sleeping a lot these days.... I've always been of the mind that your body tells you when you need to sleep.... So, I don't fight it... OK, I've got my infusion dates scheduled.... So, there won't be a letter on 1/15 & 16, 2/5 & 6, and 2/26 & 27 and 3/3... I have to fly back to St. louis for the infusions, so a real big hassle, but so be it.... I haven't noticed any change in the tumor, so I guess time will tell.... at least that's what I'm hoping for! Chicago takes us to the finish line today with their song; Feeling Stronger Every Day.... that was my theme song a couple of months ago!  I hope you have a Tom Terrific day today, and please Be Good To Yourself!