We're back to Dollar buying

• Traders think the rate cuts will slow.

• China is back to buying physical Gold!

Good Day... And a Wonderful Wednesday to you! I slept a lot yesterday, I just can't figure out why I'm so sleepy all the time since I've been here... I need for the winter weather here in S. Florida to go back to normal temps, so I can get outside, and then maybe I can break this habit of napping.... Could be the cancer effects on me, but I won't know that until the weather changes! I got to watch my beloved Mizzou Tigers basketball team last night take on LSU.... Mizzou built a large lead and won the game... Spirit greets me this moring with a song that I take personally, it has a lot of meaning for me and the song is: Nature's Way.... 

Well, just as it did on Monday, after getting sole the night before, the dollar rallied yesterday in the U.S. session, as traders once again called out that the euro is going to parity with the dollar.... The BBDXY, which was down 2 index points from the previous night's trading, gained that back and 2 more to finish the day flat at 1,304....  The euro slipped below 1.04, and the rest of the currencies all went back to their sick beds.... The currencies were able to get up and move around a little the last couple of nights but had to return to their respective beds by daylight.... 

Gold which was getting bought in the morning session ran into some short paper traders and Gold's early $22 gain was hacked down to a $9 gain on the day.... And Silver's 33-cent gain was hacked down to a `6-cent gain.... The short paper traders were out an about on Tuesday, and they made sure Gold & Silver didn't move higher on the day. I haven't come across any new forecasts that tell us that the short paper trading is nearing an end.... But I have come across a plethora of articles about how the Global Central Banks are still buying physical Gold by the boat loads.... If that scenario continues throughout 2025, then Gold & Silver should see gains like they booked in 2024.... I'm just saying.... 

For instance, Kitco.com reported that "China’s central bank purchases 10 Tonnes of Gold in December, analysts say it's nowhere near done buying".... So that all bodes well for Gold' future price.... 

The price of Oil bumped higher again to the $74 handle yesterday, and there was a rout in bonds, that apparently helped the stock jockeys yesterday... The 10-year Treasury's yield rose to 4.68%.... 

In the overnight markets last night.... well, there was not a saving knight in white armor for the currencies last night, as the dollar got bought like it was going out of style.... The BBDXY is up 8 index points to start our day today, and the euro has fallen all the way to 1.03.... We're back to the dollar kicking tail and taking names later, and that's a problem when I look at it... Because the strength is from traders thinking that the Fed Heads will slow their rate cuts this year.... I just don't get it.... One day they think rate cuts are coming like a hurricane, and the next day they think the opposite... Pick a lane! What happens if the Jobs Jamboree on Friday this week comes in as forecast, at just 155,000 jobs? Will they change their minds again?  

Anyway, batten down the hatches folks... This is going to get really ugly once again... Gold is ignoring the dollar strength this morning and is up $6 in the early trading, and Silver is flat to down a couple of cents.... I think all that I've said about Gold for this year is bang on, but we'll have to live through the year to see if I'm correct, eh? 

The price of Oil remained in the $74 handle overnight, and the 10-year's yield has bumped even higher this mornin and trades at 4.71%.... This higher yield is helping the dollar folks, there's no two ways about that, but to the degree the dollar is strong? I doubt it..... 

My good friend, has put together an excellent piece that will be sent to his subscribers on Thursday, and in it he explains the Hoot / Smalley Tariffs... and other things about tariffs that we should all be quite aware of since this is going to become a part of economy in the near future.... I strongly suggest that if you want to read it, you subscribe today, so that it's in your email box tomorrow....  Just go to the link above and sign up, it's free! 

Ok... Well, I guess the thing, although it's a remote chance at this point, but, we need to be aware of is that Central Bank buying of physical Gold could corner the Gold Market?  That reminds me of the Hunt Brothers attempting to corner the Silver market years ago....  They weren't successful, and I doubt Central Banks won't be successful either, but it is something we need to keep in the back of our minds.... 

Well, the folks that run the European Central Bank have to be thinking Oh-NO! It was reported earlier this week that Eurozone inflation saw a big rise to 2.8% last month.... And the ECB has just cut rates.... Stupid, stupid, stupid Central Bankers... I guess they would tell us that they had no idea that inflation was sticky and could come back with a vengeance! This report should help the euro in that it should also back the rate cuts away from the table, it should.... That doesn't mean the knuckleheads at the ECB will keep their powder dry.... It just means they should! 

I talked about the Chinese renminbi the other day in length.... But I wanted to point out that that China's currency has continued to weaken and hit 7.33 on Tuesday... Chinese leaders had tried to soothe the markets with talk that they had the answers for Trump tariffs.... But apparently that wasn't enough as the currency hit a level it hadn't seen since Sept 2023.... With two weeks to go until Trump takes over the POTUS, and implements his high tariffs on China, expectations of his promised big tariffs hve ratle markets in China, everything from Chinese stocks to bonds, to other assets, have all been effected....  

You may recall me telling you that there was talk of a Chinese renminbi devaluation to offset the tariffs.... This has not been discussed further by the Chinese at this point, but I'm sure that when they say they have the answers to the tariffs, it includes a devaluation.... 

The U.S. Data Cupboard today has the ADP Employment Report for December.... Right now, ADP says that job creation will be 136,000 in December.... That's not a lot.... But we'll have to wait-n-see.... The minutes of the last FOMC Meeting will print this afternoon.... And yesterday's data cupboard showed that there are plenty of open jobs in the U,S. 8.1 Million.... 

To recap.... The dollar rallied on Tuesday during the day after getting sold the previous night... That's two days in a row.... Gold ran into short paper trading along with Silver and their gains yesterday, were pared down.... There was a bond rout yesterday, and the 10-year's yield rose to 4.68%.... Chuck talks about an artilce that Dennis Miller will put on Thursday on tariffs.... The ECB has to be soiling their pants after the inflation report showed inflation rising in the Eurozone, after they had cut rates!  

For What It's Worth.... I gave Gold quite a bit of attention this morning, so I thought that this article about Silver would be good for catch up.....  

Here's your snippet: "The Perth Mint sold 31,727 troy ounces (oz.) of gold and 1,057,311 oz. of silver in minted product form during December 2024.

The Perth Mint’s General Manager Minted Products, Neil Vance, said interest remained strong in the 2025 Australian Kangaroo bullion series released in November with silver sales in particular driving December’s results.

“The Perth Mint’s kangaroo coins and bullion are famous around the world. It’s always a pleasure to see how warmly they are received by collectors and investors,” Mr. Vance said.

The Perth Mint manufactures and markets the Australian Precious Metal Coin and Minted Bar Program. Trusted worldwide for their purity and weight, the coins include annual releases of the renowned Australian kangaroo, kookaburra, koala, and lunar series. In addition, periodic releases and series offer investors a choice of alternative design themes.

Please note: The figures stated in this article are for total monthly ounces of gold and silver shipped as minted products by The Perth Mint to wholesale and retail customers worldwide during December 2024. They exclude sales of cast bars and other activities including sales of allocated/unallocated precious metals for storage by The Perth Mint Depository."

Chuck again... I still believe that Silver will outperform Gold on a percentage basis this year, so back up the truck, in my opinion.... 

Market Prices 1/8/2025: American Style: A$ .6202, kiwi .5600, C$ .6953, euro 1.0300, sterling 1.2352, Swiss $1.0975, European Style: rand 18.8696, krone 11.3895, SEK 11.1741, forint 403.30, zloty 4.1477, koruna 24.3934, RUB 105.09, yen 158.22, sing 1.3690, HKD 7.7799, INR 85.86, China 7.3316, peso 20.41, BRL 6.1430, BBDXY 1,312, Dollar Index 109.17, Oil $74.71, 10-year 4.71%, Silver $30.12, Platinum $958.00, Palladium $934.00, Copper $4.18, and Gold.... $2,654.67

That's it for today... We had visitors yesterday, good friends, Pete and Karen stopped by to say hi.... They used to have a unit in our building, but then bought a house and are quite happy with it.... Our Blues had a 4-3 lead going into the 3rd period last night, and then ended up losing 6-4.... UGH! Our Blues are so inconsistent.... Mizzou's win last night was their first SEC Conference win since 2023.... 669 days without a conference win.... They were due! My beloved Cardinals are still attempting to deal Nolan Arenado... Apparently no one wants his contract.... The Cardinals need to trade him, so they can move Nolan Gorman to his original position, 3rd base.... Here's hoping a trade gets done soon!  Jimmy Cliff takes us to the finish line today with his song: Hello Sunshine.... don't know that one? YOUTUBE it, I think you'll like it!  I hope you have a Wonderful Wednesday today, and please Be Good To Yourself!