Gold Daily And Silver Weekly Charts – Economic Blowback

“There are two kinds of realists: Those who manipulate facts and those who create them. 

The West requires nothing so much as men able to create their own reality.” 

Henry Kissinger, 1963

“But in these cases
We still have judgment here, that we but teach
Bloody instructions, which, being taught, return
To plague the inventor: this even-handed justice
Commends the ingredients of our poisoned chalice
To our own lips…”

Shakespeare, Macbeth

Gold and silver are massively oversold here.

The dollar is rallying and I suspect the precious metals are being carried lower here by the kind of overreach of trends that are obtained from the momentum traders.

There were no deliveries at The Bucket Shop yesterday.

There is still the slow leakage out of the warehouses and ETFs as gold flows West to East. A good chunk of gold bullion left the JPM warehouse yesterday. Let’s see if it goes anywhere special, or just sails into the sunset.

The dollar at these valuations is choking the real economy.  So we know this cannot last all that long since the economy is not robust, but is in fact than most economists would allow. 

The Fed knows this, but they may not let that interfere with their desire to raise rates to give themselves some policy room to maneuver next year or the year after when this latest bubble collapses into crisis.

Have a pleasant evening.