Wash, rinse cycle continues

Good Day... And a Wonderful Wednesday to you! Yesterday went by in a flash, with me traveling until late last night... But I'm here now, in my winter home, for a week to break up the days in November... Sunny and 80 is more like it, rather than those bone chilling days back home... The Dodgers had their World Series Win Parade the other day, and my mind kept going back to 2019, when our Blues won the Stanley Cup, and the parade we had in St. Louis! Seems like a long time ago, now.. UGH! Today is my "other daughter" Rachel's Birthday... She likes to celebrate her Birthday Month, so she'll be busy with celebrations this month... Del Shannon greets me this morning with his song: Runaway.

I don't think that anyone from any era would turn their nose up at that song! 

Ok, I'm tired of asking the question of who on Earth is Buying dollars? Because it's not just a one-time event with the dollar buying, this has really gotten a life of its own.. The BBDXY rose yesterday to end the day at 1,226... Rate cuts be damned, this is dollar buying that has gone to an extreme... Whatcha gonna do? Well, I would suggest that you batten down the hatches and ride this out... make certain you have enough food and water stored down there, because this is going to take longer than I care to admit.

The selling in the metals started back up again on Monday, Gold lost 70-cents, and Silver lost 59-cents... No Biggie, right? Well, it took tons of physical buying at the end of the day to bring it back inside the park... On Tuesday, the buyers just game up, waved a white flag and went home as the SPTs sold Gold & Silver like funnel cakes at a State Fair... Gold lost $67 to close the day at $3,933. Silver lost 80-cents to close the day at $47.20...  I found it interesting that Gold was allowed to close above $4,000 on Monday, but then they fixed that on Tuesday for sure!

I found this on Kitco.com: " Gold’s rally has entered a cooling phase after two consecutive weekly losses, but while near-term momentum has stalled, the fundamental case for holding gold remains intact, according to Ole Hansen, head of commodity strategy at Saxo Bank.

Hansen said that over the past two weeks, the tone “has shifted from exuberance to reflection, with traders reassessing how much of the 2025 narrative—rate cuts, fiscal stress, geopolitical hedging, and central bank demand—has already been priced in.”

The other thought that I have on Gold right now is that all this selling could have been planned to get rid of all the on the fence, short-term buyers of Gold, and when they are gone, it will leave the buyers of Gold that are going to hold it no matter what the SPTs throw at us...  And Mr. Hansen above makes a good statement when he says that the "fundamental case for holding Gold remains intact"... Couldn't have said it better myself! 

The price of Oil has remained trading with a $60 handle for 5 days now... And the 10-year Treasury's yield remained above 4% at 4.07%.

In the overnight markets last night... Well, late last night I checked the metals, and they were getting sold... But this morning, believe it or don't, the metals are in the green! Gold is up $33 to start our day, and Silver is up 51-cents... So, the early trading has turned things around... I have to admit though that a price of $3,966 for Gold sure looks weak given where Gold was a week or so ago... The selling has gone on for so long, that I've lost track of time that this has been going on... But if Gold had not gone on that ride on Mr. Frog's Wild Ride and jumped to $4,300 so quickly, and we were just now getting to $3,966; we would be ecstatic about its level, so just to put things in perspective.

The dollar saw a bit of slippage overnight, with the BBDXY losing 1 index point overnight and starting our day at 1,225... I've talked a bit too much about how the dollar buying is not warranted, and that it is overdone, so I won't go down that rabbit hole again.

The price of Oil remained trading with a $60 handle overnight, and the 10-year Treasury has a yield of 4.07% to start our day today.

Globally, central banks officially added a net 39 Tonnes of gold to their holdings in September. That was up 79 percent month-on-month and was above the 12-month average of 27 Tonnes." 

Chuck again... yes, Central Bank buying was going on during Gold's sprint higher, so they weren't deterred from buying then...

Just shows to go you, that when you want to buy, you buy, no matter what the price is!  

That's how I buy things... If I need it, I go buy it, and if it's on sale then great, but if not, no biggie to me, because I needed it... 

And I found this on Ed Steer's letter this morning: "Corporate America is getting rocked by historic rounds of white-collar layoffs, leading some to wonder: Has AI finally come for their jobs?

While the proliferation of generative and agentic artificial intelligence is playing a role, recent job cut announcements from companies like Amazon, UPS and Target are about a lot more than just the advance of new technology.

The firms, which each announced layoffs in recent weeks totaling more than 60,000 roles eliminated this year, said they’re trying to cut corporate bloat, streamline operations and adjust to new business models."

Chuck again... I told you a week or so ago that the layoffs from major Corporations were piling up in numbers that were significant, so this is not new news, but a continuation of the story that's playing out before us... 

I don't have much else to talk about today, so we'll just head on to the Big Finish. 

The U.S. Data Cupboard is lonely... it has no one to love it... and this will go on as long as the Gov't is shutdown. 

To recap... The dollar continued to get bought on Tuesday, and the metals continued to get sold... It's a mess in Chuck's eye... The dollar is overbought, overcooked, overhyped, etc. when will this end? Only the Shadow Knows.

Here's your snippet: " The US government shutdown has become the longest in history, and with no sign of a resolution soon its economic toll is deepening.

Now in its 36th day, the shutdown has surpassed the previous record set in early 2019 during President Donald Trump’s first term. Every week that passes costs the economy anywhere from $10 billion to $30 billion, based on analysts’ estimates, with several landing in the $15 billion range.

In the past, the hit to economic growth has been temporary, with furloughed employees getting back pay and the federal government making up for the halted spending once reopened.

This one stands to inflict more damage, and not just because of its length, economists say. The economy is more fragile than seven years ago, with many Americans fretting about inflation and job prospects. And unlike during the 2018-2019 shutdown, the fallout extends beyond federal workers missing paychecks to millions of Americans losing full access to food assistance heading into the holiday season.

“The experience, historically, is that government shutdowns don’t cause calamity,” said Jonathan Millar, a senior US economist at Barclays. “This time could be different.”

Depending on its length, the shutdown could lower fourth-quarter economic growth by as much as 2 percentage points, according to the Congressional Budget Office. If the stalemate extends to Thanksgiving week, about $14 billion won’t be recovered at all, the CBO said."

Chuck Again... 4^th QTR GDP might just be negative in my view... I guess we'll have to wait-n-see, eh?

Market Prices 11/5/2025: American Style: A$ .6479, kiwi .5641, C$ .7075, euro 1.1487, sterling 1.3029, Swiss $1.2341, European Style: rand 17.4647, krone 10.2306, SEK 9.5890, forint 336.79, zloty 3.7062, koruna 21.2080, RUB 81.30, yen 153.65, sing 1.3070, HKD 7.7753, INR 88.65, China 7.1275, peso 18.66, BRL 5.4005, BBDXY 1,225, Dollar Index 100.18, Oil $60.69, 10-year 4.07%, Silver $47.71, Platinum $1,542.00, Palladium $1,418.00, Copper $4.92, and Gold.... $3,966.

That's it for today... A partly cloudy day here on the coast but the sun is poking through, so that's a good thing! Our Blues finally won a hockey game VS the Oilers... It has been over a week of losing for the Blues, so nice to see them right the ship... The radio is playing my favorite song: Cisco Kid... So, this is going to be a great day! Happy Birthday to Rachel Butler today... I hope your day is grand! You are a GREAT daughter-in-law! The Atlanta Rythm Section takes us to the finish line today with their song: Imaginary Lover... I hope you have a Wonderful Wednesday today, and Please Be Good To Yourself!