Pay Attention to Ag’s Resolute Buyer and the Future US Dollar Drop In Value!

in investing •  17 days ago  (edited)

  Great and Wonderful Friday Morning Folks     

      Gold is continuing its price correction after yesterday’s push lower with the trade now at $1,513.10, down $12.40 with the London low close by at $1,510.90 and the high at $1,528.50. Silver seems to be leading the price drop with its trade at $18.21, down 59.7 cents with the low at $18.12 and the high at $18.63. The currency all eyes should be on, the US Dollar, is still being supported with its trade at 98.475, up 9.3 points and right beside the London high at 98.48 with the low that needs to be crushed at 98.285. All of this activity, going against everything price wise under our currency, happened before 5am pst, the Comex open, and the closing of London.    

      The emerging markets currency watch is showing the same price reversals with the Venezuelan Bolivar valuing Gold at 15,112.09 Bolivar showing a 382.52 drop in price with Silver now at 181.872 showing a loss of 11.286 Bolivar. In Argentina, the Peso now has Gold valued at 84,767.73 showing a reduction of 2,005.73 A-Pesos with Silver doing the same, losing 61.67 A-Pesos with the price at 1,020.15. The Turkish Lira is also doing its best to make the value of its fiat look better than the metals with Golds price losing 188.20 T-Lira with the official price at 8,633.37 Lira. Silver’s price now rests at 103.899 showing a loss of 6.046 in T-Lira value.     

      There sure was a lot of drama on the September Silver Delivery stage yesterday with the total count now standing for delivery at 1,100 fully paid for demands for physical proving a drop in count of 282 and with a Volume of 212 so far this morning with a trading range between $18.63 and $18.00 with the last trade at $18.235. Even though the count dropped 212, the Volume in the early morning report yesterday morning was 382 and by the end of Comex trade, the Volume was more than double the drop in count. This tells me the Resolute Buyer stepped in during the commotion and added a few hundred more physical buy orders at these cheap prices. Whether this is paper or not won’t matter to the market players, but that physical buyer will need the real product or his business is out of business.      

      Silver’s Overall Open Interest lost a few in trade yesterday with the count now at 216,895 Overnighters, proving 6,396 obligations left the field of play, leaving many of us thinking that the longs may have exited the trade. The price beatings before the Unemployment report leaves one wondering if this was in preparation for a reversal or a continuation. Regardless, we need to keep one eye open on our Resolute Buyer and his needs with the other eye on when our currency gets its correction that Trump wants as well as every single manufacturer here in the USA.     

      We just got out Unemployment Report with the word “tepid” is being used to describe the month’s hiring requirements proving things are slowing down quite a bit which in turn, should be forcing the Federal Reserve to cut rates and to prove once again Trump is on the side of our countrymen and the Fed is on someone’s side, hmmm. Then we have the other issue, international transporting of products ain’t doin’ well either, with Maersk Halting its Asia-Europe Loop. This is not because trucking is taking over, this is how bad sales are everywhere on everything!    

      It looks like yesterday was a “one hit wonder” done by the shorts, as we now see real money rallying against the fiats. So hang on tight to the real stuff, keep a sharp eye on the deliveries at the same time the word slinging that should be expected between Trump and the Federal Reserve, we expect this to be epic! As epic as we expect the upward price movements in our precious metals. Have a great weekend, keep a smile on the face no matter what, and as always …   

Stay Strong! 

J. Johnson    

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