A 14-year high, no more – UGH

Good Day... And a Tom Terrific Tuesday to you! A Great Show was put on by the contestants in the MLB Home Run Derby last night... There were some real bombs hit! The contest was won by the Home Run leader at the break Cal Raliegh... He's hit 38 homers so far this year... That would be quite a year's worth in most players' minds... I had to watch this to take my mind off of the proceedings in the markets yesterday, we'll get into that in a bit, but first... Eric Burdon and the Animals greet me this morning with their rock classic hit song: House of the Rising Sun... 

I recall back in the day when I wouldn't miss a day playing my guitar, I learned this song and was quite pleased with myself! That was 55 years ago, at least! 

Well, the dollar got bought yesterday and continued the buying that took place the previous night. The BBDXY ended the day yesterday up 6 index points on the day, and closed at $1,202... Well, the trashing of the dollar was fun while it lasted, eh? I read one pundit's opinion that the dollar rallied because the POTUS announced new tariffs on our 2 top trade partners, The U.K and Mexico.. I don't see how this favored the dollar, but it apparently did.

Gold lost its early morning gain, and ended up with a loss on the day of $12... Silver, which earlier in the morning had traded at a 14-year high, had to give back the 60-cent gain it held in the A.M. and finished the day at $38.19... It seems that when the POTUS announced new tariffs on Mexico, that some traders took this to include Silver, of which Mexico is a HUGE exporter of Silver! That, and the short paper traders then decided to take a pound of flesh from Silver's 14-year high... The short paper traders just couldn't imagine they would still have their jobs if Silver closed higher in the $39 handle yesterday... UGH! 

The price of Oil sunk on the tariff's news too, with Oil's price ending the day trading with a $66 handle... With U.S. consumers paying more and more for items that are sent to the U.S. and their disposable income circling the bowl... I doubt there will be much driving this fall to see the leaves.

The 10-year Treasury's yield added another basis point to end the day trading with a 4.43% yield... I'm surprised that it was only 1 basis point... But, there's nothing I can do about it, so I'll just leave it that!

In the overnight markets last night... The dollar slipped a bit and the BBDXY is down 1 index point to start our day to day at 1,201... Nothing going on there to write home about, so we'll just move along... Gold is up in the early trading today... 

$13... Much like yesterday morning, that then saw the short paper traders take a pound of flesh from Gold... Silver is down 3-cents to start the day today.

The price of Oil stayed in the $66 handle overnight and looks like it will remain there for some time... The 10-year Treasury didn't move last night so it starts today trading with a 4.43% yield.

Yes, the U.S. consumer is watching their disposable Income circle the bowl, and here's one of the reasons why... An American family spending $4,000 pa on medication would pay $300 for identical drugs in China, $481 billion in GDP inflation through legalized extortion of US households. I thank longtime readers, Bob, for sharing that info with me.

The dollar has been getting sold lately, and suddenly the selling turned around.... Here are the folks at HSBC on Bloomberg.com with their thoughts: "It was not long ago that a strong USD bubble was evident, but the opposite is occurring: an ‘anti bubble’ of sorts,” the strategists wrote. “‘Bubbly-like’ characteristics exist, which is a warning sign that a USD bottom may not be far away".

A bubble for the downward dollar? That seems a little too far-fetched to me, because I was looking at a long-term downward direction for the dollar... But que sera, sera, whatever will be will be... The future's not ours to see, que sera, sera... I beg to differ with the words in that song, I do see the future at times, and I share those times with you dear reader... I'm just saying.

Did you hear about the demands that the AI people and their AI machines are putting on power grids? This is scary stuff folks, we could be looking at rolling blackouts when the dog days of summer are upon us... For those that have seen this as a possibility and have purchased generators, good for you!  For those of us who haven't, we had better get a line of large Cubes of Ice!  I'm just saying.

The Russian ruble finally moved off the $78 handle it has held for a month of Sundays... Kiwi is getting sold after their Central Bank's debasing of the currency. The euro couldn't stand prosperity when it was trading above the 1.18 figure, and now it's mired in the 1.16 handle. The dollar's mini rally has the currencies all running for the hills because if this dollar rally doesn't prove to be a false dawn, then we'll be in store for more dollar talk regarding the upside... I'm just saying.

The U.S. Data Cupboard today just has the STUPID CPI for June this morning.. I said yesterday that there was no way the STUPID CPI would show what we Americans feel as the inflation rate, but it will show that inflation increased in June, and if it doesn't, you can bet your bottom dollar that the BLS played games with the data... That's it for Data today... I guess the STUPID CPI is so important that it had to have its own day! NOT! There will also be 4 Fed Heads our speaking today... spreading more lies than a farmer spreads manure!

To recap... The dollar selling stopped on a dime, and HSBC says that the dollar was in a selling bubble that has now popped... In other words, the bottom has been reached... Chuck argues that he doesn't see it that way... Of course, you knew he would argue with that premise, didn't you? Gold got sold yesterday, and Silver lost its 14-year high... UGH!

Here's your snippet: "In today's unpredictable global environment, marked by persistent inflation, volatile interest rates and shifting trade dynamics, it's easy to focus on geopolitics as the main driver behind gold's enduring appeal.

However, deeper economic fundamentals are the real engine of its long-term strength. Structural deficits, sustained dollar weakness, mounting government budget deficits, and evolving global monetary policy are reshaping reserve strategies. 

Although gold prices have experienced a recent dip, the metal has shown strong resilience over the past year, buoyed by economic pressures rather than short-term market fluctuations. Price fluctuations are expected in any dynamic market, but they don't diminish gold's role as a reliable store of value.

Central banks, wary of inflation and weakening currencies, are shifting reserves away from U.S. Treasuries and buying gold at historic levels. In the first quarter of 2025, the U.S. acquired 600 tons of gold -- an indication of growing institutional demand.

These monetary policy shifts and economic challenges indicate a significant potential for gold, reinforcing its strategic importance for investors and nations."

Chuck again... yes, I've discussed all of the above reasons why Gold is so popular again, but as always, sometimes it takes hearing it from someone else to spur one's action.

Market Prices 7/15/2025: American Style: A$ .6562, kiwi .5992, C$ .7305, euro 1.1670, sterling 1.3444, Swiss $1.2547, European Style: rand 17.8090, krone 10.1679, SEK 9.6493, forint 343.17, zloty 3.6469, koruna 21.1433, RUB 77.90, yen 147.92, sing 1.2816, HKD 7.8500, INR 85.61, China 7.1752, peso 18.68, BRL 1,201, Dollar Index 98.08, Oil $66.76, 10-year 4.43%, Silver $38.16, Platinum $1,396.00, Palladium $1,222.00, Copper $5.55, and Gold... $3,357.

That's it for today... Crazy days... just right for taking a walk outside... early in the morning if you don't want to deal with the heat of the day! While we're out walking and thinking, think about whether or not you have enough Gold. Just a friendly Spiderman reminder... The MLB All-Star Game is tonight... I root for the National League, who when I was younger seemed to win every year, but not any longer... UGH! When you had Bob Gibson, Fergy Jenkins, Don Drysdale to pitch for your team, you had a pretty darn good chance to win! Junior Walker & The All-Stars take us to the finish line today with their great 60's song: What Does It Take? I hope you have a Tom Terrific Tuesday today, and please Be Good To Yourself!