CPI Prep: China Gold Arb, Goldman and JPM's Bottom Lines
Jan 11th, 2024
Housekeeping: Good Morning.
Gold is strong up $9.00 as we write this, and Silver is up 15 cents. There was buying all during Asian hours again and chop during Europe. We feel there is a big buy program order being bought during Asian hours every night now and will keep returning on dips and/or sideways markets.
We get nervous the moment it does not comeback. That would signal to bears to sell weakness again. Historically, and this is important: This behavior frequently comes before China announces some bigger stimulus programs. It is also consistent with a systematic US/Asian arb going on in Gold now. Conjecture, but noteworthy.
Bitcoin has seen a muted response to final approval of its spot ETFs. Those start trading today
CPI Consensus Expectations
Headline: 0.21% monthly and 3.2% YoY
Core: 0.25% monthly and 3.8% YoY