What the heck is going on with Gold?

Good Day... And a Wonderful Wednesday to you! Well, my trip to the oncologist didn't produce any major changes, so it was more of a "carry on my wayward son" (Kansas). My beloved Cardinals found their bats and won in Atlanta last night... I came home from the hospital and fell into my recliner and didn't move for hours! I was beat, and I didn't know why? Oh, well, mysteries of the Universe... The Alan Parson's Project greet me this morning with their song: Time.

Welcome to July... Pfennig Tradition calls for this: There I was on a July morning, Looking for Love, And with the strength of a new day dawning, And a Beautiful Sun.... (Uriah Heap).

Well, the dollar that selling that took us into the weekend, last, didn't last long, and the buying of the dollar has taken over again. Monday, there was a little buying, and Tuesday followed up Monday with a bit of buying of its own, but in the overnight markets last night, the dogs have been released! The BBDXY is up over 3 index points to start our day today, as the war continues in Iran... Oh, I know, there are reports that there's peace, but those are just to get everyone settled down... The real story is that the Missiles and drones are still flying around and that has the dollar getting bought.

The dollar has risen so quickly that the currencies are being left behind... The euro which had rebounded to the 1.14 handle, saw that rally put to bed, and quickly it was in the 1.13 handle... The Japanese yen which had been 161 something for weeks now, saw that disappear and a new 162 handle has replaced it.

I do want to mention that there is one currency that has been weathering the dollar storm to a degree and that is the Brazilian real (BRL). This is all because of the good that the President has put into the Government, he has all but balanced their budget and inflation is falling...  So, check them out!

Gold saw two very distinct moves yesterday... Before I left for the hospital, Gold was up $25, and I thought that it was going to be a good day for Gold... Well, when I returned home, I checked Gold and saw that the SPTs really ripped into Gold and it had given back the $25 it had gained earlier, and the damage had been done... Gold closed yesterday at $4,008...  Silver saw the same trading pattern as Gold, and it closed at $58.49, a full $1.80+ away from where it was earlier in the morning... UGH! 

The price of Oil had seemed to have turned around, until yesterday... The price of Oil fell $2 to a $69 handle and has fallen through the $69 handle to start the day today at $69.02.

And the 10-year Treasury yesterday didn't see any signs of interference from the Fed Heads, so its yield rose to 4.48%... The Fed Heads talk last week after their meeting, that interest rates would have to go higher before year-end, if inflation continues to be on the rise, has really pushed the yield on this bond and the Fed Heads have no one else to blame.

In the overnight markets last night... There was more buying of the dollar, but it was watered down from yesterday's BIG rally... And Gold is up $25 again this morning... What gives with the SPTs is what matters these days... Even though in a report from the Official Monetary Financial Institution that in their recent survey the first time since they began recording, that Central Banks are shifting away from the dollar.

Yes that could mean that they are going to be buying other currencies but mostly likely it means that that will be buying Gold instead of dollars... And the SPTs must have known about this report because they are hell bent and whiskey bound to keep Gold/Silver from reaching for the stars.

The price of Oil and the yield on the 10-year are the same as they were yesterday at the close, so no change there.

Regarding the War continuing... This is from CNBC.com "“The markets are a little uneasy about ​how stable the [memorandum of understanding] is and there’s pressure on gold because people are not seeing much light at the end of the tunnel,” Marex analyst Edward Meir, said."

Chuck Again... yes, as I said above, the masses are hearing that Peace has taken over, but there are many questions and the missiles and drones keep flying.

And last week that European Central Bank (ECB) hiked rates and pointed to the higher reports of Inflation... but these guys at the ECB have no one else to point the finger of blame at except themselves... There was a report yesterday that Eurozone money supply has grown and not just a little bit... May's report was up 3.2% VS April's 2.7%.

The U.S. Data Cupboard today has the ADP Employment Report for May for us today... The national ISM report for May is also supposed to print... I don't think either one will play into the dollar or Gold/Silver trading today, so I hope I'm wrong about that!

To recap... The dollar selling that took us into the weekend, last, ended on Monday with a bit of buying and the same on Tuesday, but the overnight markets last night saw the dollar kick some tail, and it starts today up considerably from where it was on Friday's close... Central Banks are shifting away from buying dollars.

Here's your snippet: "he majority of publicly traded business development companies (BDCs) — the visible part of the private credit market — have turned unprofitable due to falling asset values and ​rising costs, a Reuters analysis shows, in the latest sign of pressure building in this highly leveraged corner of finance.

The $3.5 trillion private credit industry, where specialist funds step into ‌a role traditionally held by banks to lend to mid-sized companies, has lately come under stress due in part to its sizeable exposure to software companies disrupted by AI advances. BDCs are investment loan vehicles that make money by collecting interest payments on credit extended to borrowers.

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A Reuters analysis of balance sheet data from S&P Global Market Intelligence examined 53 publicly traded BDCs, finding that their loan losses and debt costs have jumped. A number of those BDCs are also utilizing ​more off-balance-sheet borrowing.

Companies in this industry tend to be appraised based on the health of their net investment income, which excludes changes in underlying loan values.

However, S&P's data platform standardizes net ​profit figures across all BDCs to arrive at a bottom-line income figure that adds in debt costs and changes in loan values, using figures either from ⁠a third-party appraisal company or by the BDC's fund manager.

Using that data, the group was unprofitable for the first time since at least 2024, largely due to write-downs on the value of their ​assets, such as loans to software companies."

Chuck again... Just shows to go you that unless you want read about the War in Iran or the Strait of Hormuz that the well is dry considering FWIW articles... I'm just saying....

Market Prices 7/1/2026: American Style: A$.6896, kiwi .5676, C$ .7032, euro 1.1382, sterling 1.3282, Swiss $1.2336, European Style: rand 16.4140, krone 9.9253, SEK 9.7380, forint 312.28, zloty 3.7713, koruna 21.4492, RUB 78.06, yen 162.70, sing 1.2967, HKD 7.8439, INR 95.24, China 6.7939, peso 17.52, BRL 5.1617, BBDXY 1,225, Dollar Index 101.51, Oil $69.02, 10-year 4.48%, Silver $59.04, Platinum $1,570.00, Palladium $1,214.00, Copper $6.19, and Gold... $4,033.

That's it for today... Well, I told my oncologist that I had been waking up in the middle of the night with stomach problems... She offered some thoughts that could work, I slept right through to this morning! YAHOO! We'll have to see how tonight goes... Getting a full night of sleep is important, and I want to experience it more! Well, I'm into the 4^th of July... I really want to celebrate it the way I used to before Cancer... But, I know that my body won't deal with that, so I'll just have to watch it on TV! Brewer & Shipley take us to the finish line today with their classic rock song: One Toke Over.... I hope you have a Wonderful Wednesday today, and Please Be Good To Yourself!