The overnight markets come alive

Good Day... And a Marvelous Monday to you! Well, my beloved Cardinals had a chance to sweep the Reds, but the Cards 5 game winning streak came to an end... They did take 2 of 3 from the Reds, so there was that! It was a hot weekend here... As Summer is finally upon us! Smokey Bill Robinson greets me this morning with his song: Cruisin'

Well, apologies to the pundits that I accused of panicking last week, when the POTUS threatened to bomb Iran... Because late last week the U.S. did just that! I don't know where that moves takes us going forward, but I'm not to sure about it... I'm just saying... 

I would have thought that Gold would be the cat's meow of investments going into the weekend, but that was not to be, Gold didn't really move with it being down just $2 from Thursday morning when I last talked to you. Gold ended the week at $3,367... 

Silver took it on the chin from the short paper traders both Thursday and Friday last week and lost 60-cents from Thursday and ended the week at $35.92... 

I thought it best to give you Ed Steer's explanation of what went on late last week, so, here's Ed: "I was somewhat surprised that the collusive commercial traders of whatever stripe set the low ticks in gold and silver about ten minutes before the Globex open in London on Friday morning -- and didn't press their advantage starting after the morning gold fix over there, or during the COMEX trading session in New York.

That 1-hour long rally in gold going into the afternoon gold fix in London was a surprise -- and reeked of short covering. And as I pointed out in my discussion on gold at the top of today's missive, 'da boyz' stepped in with a vengeance at that time to ensure that gold closed down on the day...as it would have certainly closed higher by a respectable amount if they hadn't."

Thanks to Ed Steer for that, and you can find Ed here: www.edsteergoldsilver.com

The dollar didn't move much last week, and neither did the 10-year... Two former stalwarts of safe havens, but are no longer considered as such... The BBDXY ended the week at 1,211, and the 10-year ended the week trading with a $4.40% yield...

Maybe it's a delayed reaction to the U.S. bombing of Iran's nuclear facilities that will get people buying Gold... 

And another asset that I thought would be soaring this morning, is the price of Oil... It initially rose to $76 on Thursday, and ended the week at $75, so either it's a delayed reaction to everything, or... I don't know, what else would keep the assets down... 

In The Overnight Markets last night... The delayed reaction came last night... And boy did it come! The dollar got bought by the bushelful and the BBDXY has gained 6 index points to start the day/ week today. 

Gold is down $5 to start the day/ week, and Silver is up 14=cents. The price of Oil has slid back down to a $74 handle, as traders await Iran's reaction to the U.S.'s strike. I'm telig you this now, so you can go get your gas tank filled before this happens... I think that Iran could make the Oil market a real dangerous place to trade going forward... This is what I fear that the Oil embargoes of the 70's will look like child's play here... I hope to hell I'm wrong on this... 

And the 10-year Treasury's yield dropped like a rock overnight. Were the Fed Heads in buying again? It sure looks like it as the yield on this bond trades at 4.35%... I have something on Treasuries in the FWIW section this morning, so stay turned to that!

Well, the dollar's going nowhere folks, and I had a dear reader send the link to this video and song about the dollar... So, it's a real treat folks... https://www.youtube.com/watch?v=-XbzOOQq47E&ab_channel=OscarBrand-Topic

OK... The good folks at GATA sent me this note: "Germany and Italy are facing calls to move their gold out of New York following President Donald Trump's repeated attacks on the U.S. Federal Reserve and increasing geopolitical turbulence.

Fabio De Masi, a former Die Linke member of the European Parliament who joined the leftwing populist BSW party, told the Financial Times that there were "strong arguments" for relocating more gold to Europe or Germany "in turbulent times."

Chuck again... Good luck with that boys... because I would doubt that the Gold is really there, having been leased out several times through the years.... I'm just saying... 

So, the overnight markets got the ball rolling and I'm not liking what I'm seeing this morning... The dollar is up, bonds are getting bought, and the currencies, metals and Oil are all down... 

This wasn't just the overnight markets doing, there had to be tons of intervention here folks... And I abhor intervention! Let markets do what they want to do without intervention! 

And remember when I talked to you about the POTUS's plans to give exploration companies mining rights on Federal Land to uncover the minerals that are there and generate huge sums of money for the country? Well, the first phase of this plan went into action last week, with a bill to sell some of the Federal lands to the exploration companies... This is going to actually happen folks... I can't believe my eye! 

The U.S. Data Cupboard today is basically empty, but later this week it gets refilled and will be chock-full-o-data.... I'm talking about some real economic data so that should stir up the markets... And it all takes place starting on Thursday, making it a true Tub Thumpin' Thursday! 

To recap... The U.S. bombed Iran's nuclear facilities late last week, and the markets shrugged it off... Chuck doesn't have an idea why they did that, but it is what it is... In the overnight markets all hell was released, and the dollar was bought, along with the 10-year Treasury bond, Oil, currencies and metals are all getting sold to start the week... This is all opposite of what I thought would happen! SERENITY NOW! 

For What It's Worth... I found this article this past weekend and knew from the headline that it was FWIW worthy... 

Here's your snippet: "More than 200 Central banks and foreign entities have withdrawn a substantial amount of U.S. Treasuries from the New York Federal Reserve, signaling potential concerns over the stability of the U.S. dollar.

What Happened: The New York Fed’s custody holdings of U.S. Treasuries and other assets have seen a significant decline. The holdings dropped by $17 billion last week and have plummeted by $48 billion since late March, coinciding with the onset of the trade tensions sparked by President Donald Trump‘s tariffs, reported Fortune

Bank of America‘s managing director and U.S. rates strategist, Meghan Swiber and fellow strategist, Katie Craig, expressed significant concern over the withdrawal of foreign private investors from the Treasury securities market. Swiber and Craig commented, “This drop is unusual.”

Typically, the cash generated from the sale of U.S. debt is placed in the New York Fed’s reverse repurchase facility, where it is exchanged for Treasuries as collateral. However, that trend has recently reversed, with foreign participation in the facility declining by $15 billion since late March. This points to a notable reduction in U.S. assets held by foreigners at the Fed — roughly $63 billion in just over two months.

Swider told Fortune, "We're of the view that deficits are going to continue to climb higher in the coming years, and what we struggle with is, ‘Who is going to help support that higher level of supply?”

Chuck again... Yes, who is going to help support our deficit/ debt? That's the $64 question and I don't think you'll see many countries holding their hands in the air ala Arnold Horshack, and saying OOOOOH, pick me Mr. Kotter! 

Market Prices 6/23/2025: American Style: A$ 6486, kiwi .5896, C$ .7253, euro 1.1466, sterling 1.2287, Swiss $1.2214, European Style: rand 18.1301, krone 10.1736, SEK 9.7298, forint 352.59, zloty 3.7279, koruna 21.6809, RUB 78.49, yen 147.58, sing 1.2929, HKD 7.8499, INR 86.76, China 7.1869, peso 19.25, BRL 5.5318, BBDXY 1,217, Dollar Index 99.31, Oil $74.25, 10-year 4.35%, Silver $36.06, Platinum $1,300.00, Palladium $1,057.00, Copper $4.86, and Gold.. $3,362.

That's it for today... Yesterday I attended a musical that my darling granddaughter was in... The musical was Hello Dolly... And while Delaney didn't have the lead, so had a big part... it was a great performance! Yesterday was a hot day, like 7 inches from the sun! Welcome to a St. Louis Summer! So, no Pfennig on Thursday this week... I get my only remaining eye that have the cataract removed... I had to get used to noise in the house on Friday as Kathy came home... Oh well... all good things. come to an end! HA Uriah Heep take us to the finish line today with their great 70s song: Stealin'. I hope you have a Marvelous Monday today and please Be Good To Yourself!