by JB Slear, Fort Wealth:
US Dollar is trading at a high of 83.770, actually down 6.4 points from yesterday’s close and almost 100 points higher than Wednesday’s end. The Dollar rally was not because of good things happening in the “land of the fees”, but because on Thursday the EU desperately cut interest rates to .05 of 1%. That gives our Treasuries a boost in demand (they’re trading flat at the moment) because we actually pay a better return than Europe, about 1/10th of 1% more (what a joke return). Energy Sector continues to not perform with the fundamentals pointing to skyrocketing prices, however, the Algo’s have been instructed to keep the prices low with Crude Oil now at $94.66, only 21 cents higher with the rest of the sector stuck as well. Gold, which we think did a stellar job yesterday holding onto its value as the Dollar was elevated, is now trading at $1,266.60, up 10 cents with a small drop in its Open Interest (2,992) leaving 368,523 overall positions held overnight. Under normal circumstances, Gold would have been hammered $50 on a Dollar rally like we had yesterday. Now the Dollar is way over bought and Gold way oversold. Silver faired even better in yesterday’s movements and its trade is now at $19.135, down 3/10ths of a penny with an Open Interest drop of only 502 contracts leaving a very hefty count of 161,806 still in the game. We had an increase in physical deliveries as 39 contracts received their warrants with 4 more contracts added to this month’s deliveries.
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