The Dollar is the frog in the pot of water

Good Day... And a Marvelous Monday to you! My beloved Cardinals ended their season yesterday with a win, thus giving them 12 more wins in 2024 than they .....  

Gold gained $16 on Thursday to a new all-time high of $2,673.50, and Silver gained 21-ents to end the day at $31.98.

That's all good and that, but you should have seen these two metals kicking some tail and taking names later, during the day on Thursday... I'll let you read a snippet from Ed Steer on what he saw "It was yet another one of those days where all four precious metals would have closed at some fantastic price in a short covering rally for the ages if the collusive commercial traders of whatever stripe hadn't appeared.

Gold closed at another new nominal high price. Although it finished the Thursday trading session up $16.80 in the spot market, it only closed higher by $10.20 in its current front month, which is December. Its high tick in that month was $2,708.50 -- but was hauled lower and closed below $2,700. If they hadn't, it's a certainty that it would have closed with a '3' handle yesterday. As it is, gold is now showing hugely overbought on its RSI trace.

The interference in silver was even more egregious. It was capped very shortly after it broke pennies above $33.00 in the December contract...its current front month as well -- and they then had the audacity to close it below $32 in the spot market. But if they hadn't shown up, it's a near certainty that silver would easily taken out its old $50 nominal highs of yesteryear."

Chuck again... when Ed mentioned $50 for Silver, it reminded me of an article I wrote for a major magazine back in the day that was titled "Silver is the new Gold", and I touted how Silver would soon be trading at $50, and then it did... But soon after that the trap door was sprung under Silver and it traded at $50 no more.... I never received an invitation to write another article for the magazine... I wondered why? HA! 

On Friday, after the 2nd QTR's GDP was revised unchanged at 3.0% growth, due to Gov't spending, I might add, the dollar rallied a bit, with the BBDXY gaining 3 index points to 1,220.... The reason for the rally? Well, the markets came to the conclusion that if GDP was so strong the Fed Heads might not need to cut rates so sharply... To that, I say, balderdash! The Fed Heads have their "dot plot" for interest rates, and they already have them down another 50 Basis Points going into year-end.... 

Friday also saw a ton of economic data... I'll get to that in the Data Cupboard section today, but all-in-all, the data wasn't especially that good... So, stay tuned from that commentary later this morning... The short paper traders liked their work on Thursday so much, that they came back for more on Friday, and sent Gold & Silver reeling.

Gold ended the week down $ $15.60 to close at $2,657.90... and Silver was down 36-cents to close the week at $31.61.

The dollar was range bound on Friday and the BBDXY closed the week at 1217.

That's down from a week ago when it started the week at 1,222...And a month ago the BBDXY was 1,240! So, even when the PPT steps in to save the dollar they don't stop the boil ... Yes this is like the frog in a pot of water... if you drop a frog in boiling water it will jump out... but if you drop a frog in a pot of water and slowly turn up the heat.... you have cooked frog.! 

So if the dollar bears want a cooked dollar, they'll have to apply heat on the dollar at a slow pace so to not awaken the dollar bugs.

I don't have any internet on my laptop this morning I have no idea what's going on... my phone and TV have internet but not my laptop and iPad... I'm actually writing this on my phone this morning.... so they'll be no FWIW this morning.

In the overnight markets last night... the dollar was bought a bit with the BBDXY gaining 2 index points... Gold is getting sold in the early trading today and is down $18 to start the day/week... Silver, too, is getting sold and is down 42-cents to start the day/ week.

The Petrol Currencies are not performing well with the price of Oil getting whacked... Currencies like the ruble, krone, and others are not being able to gain while the dollar is weak because of the weakness in the price of Oil, which trades this morning with a $68 handle.

I'll have more for you tomorrow if I can get my laptop fixed today... no wait! Not tomorrow but on Wednesday! No Pfennig tomorrow.

The U.S. Data Cupboard last week saw Personal Income up .2% and Personal Spending up.3%..,. One step forward and a half step back.... ugh!

We also saw the Aug. PCE. And it came in at 2.2%.... I know I don't have to remind you that it's an Election Year....this data should have sent the dollar reeling but it didn't thus validating the markets feeling for it's truthfulness.... I'm just saying...

This week's Data Cupboard is off and on this real economic data, and will end the week with the Jobs Jamboree on Friday.

To recap the dollar is down from month to month and Chuck thinks the dollar is the frog in the pot of water.

Market Prices 9/30/2024: American Style: A$ ,6921, kiwi .6350, C$ .7393, euro 1.1186, sterling 1.3388, Swiss 1.1841, European Style: rand 17.1845, krone 10.5330, SEK 10.1132, forint 355.57, zloty 3.6259, koruna 22.5247, RUB 93.09, yen 142.68, sing 1.2814, HKD 7.7670, INR 83.80, China 7.0121, peso 19.66, BRL 5.4340, BBDXY 1,219.18, Dollar Index 100.37, Oil $68.21, 10-year 3.77%, Silver $31.15, Platinum $983.00, Palladium $997.00, Copper $4.59, and Gold... $2,639.91.

That's it for today and tomorrow I'll have to go see someone about my laptop today...UGH! I'm sure glad my TV didn't bug out on me yesterday! My health doesn't seem to be getting any better... still coughing in the morning... still weak... and now since I'm back on chemo my stomach is upset all the time! And sleep? Yes I sleep a lot these days...but I carry on despite my shortcomings.... The Doobie Brothers take us to the finish line today with their song: Dark Eyed Cajun Woman... I hope you have a Marvelous Monday today. And please be good to yourself.