Stocks And Precious Metals Charts – On The Road To Damascus – Precious Metals Options Expiration

The US dollar was swooning this morning, and stocks were in a light rally. The cause of this was the ongoing policy of the Trump Administration for a weaker dollar. The weak dollar increases the price of imports, and decreases and makes more competitive exports, priced in dollars.

Treasury Secretary Mnuchin had just affirmed that policy from Davos, and Wilbur Ross added some ‘trade war’ friendly comments to boot.

 I wrote about this intraday 

I was a little surprised at the metals strength, because today is an option expiration on the Comex for the precious metals, particularly significant for gold. And I thought that my lowball bids to buy more gold were just going to go unfilled for the day.

And lo and behold, President Trump issued a statement from Davos in the afternoon saying that he ‘supports a strong dollar’ and that furthermore, Secretary Mnuchin’s remarks were ‘taken out of context.’

And so the Dollar started rallying, erasing all its losses for the day.And gold and silver were immediately punched lower for a loss, reversing the entire rally which had come up to key resistance.

And my lowball bid was filled (silver lining perhaps).

Is it reasonable to believe that President Trump’s remarks were credible enough to justify a major market reversal in the metals and currency markets, not to mention the stocks which also reversed and moved lower?

Don’t bother answering because that is a rhetorical question.And maybe an IQ test.

Of course the remarks were not credibleThey were obvious rubbish, and totally at odds with everything that they have done from day one.Trump spins out literally incredible whoppers like a fast and loose New York real estate developer. How unusual.

And Trump and some Congressmen seem to be pursuing 

 and there is no rule of law, no objective morality, so that anything goes. 

It is foolish to believe that these markets, as they are now regulated and constructed, need any genuine fundamental reason to value anything. They are pushed and shoved in the ways that benefit the insiders and the Banks, with the willing cooperation of the exchanges.We have all seen it.