Founders: Shorts are piling in now
Businesses are Losing Pricing Power
Economic Nationalism rises as a feature of structural change. This and the associated “prejudiced politics” will cause friction going forward and should be watched
***Look for part 2 of the China Gold piece in Premium we have been working on jointly with Bai. today***
Good Morning. The banks are writing nothing on Precious Metals right now. This in combination with the seasonality is killing metals. We are seeing many new shorts of the short-term CTA type piling into Silver now, as well as now adding to Gold. Truly, this is the rocket fuel for November. What we will need in November is the seasonal catalyst that comes with bank reallocations.
As traders we normally like to be early rather than late. In these situations, late is better than early. False starts in silver can occur, just as in 2022. it is important to note, no rally will have legs until fresh allocations can pile on top of a short covering rally… geopolitical tensions aside.
Look for part 2 of the China Gold piece in premium we have been working on jointly with Bai.
One other thing.. We’re keeping a close eye out for the next Grants interest rate observer and will pop it to you when it comes in.
Cheers
From UBS Chief Economist Paul Donovan:
Companies are losing pricing power as competition returns. Consumers are starting not to believe the inflation story a bit and some price wars are popping up among competitors, or what remains of the competition… Price gouging is over in the UK for starters
McCarthy may be ousted… no market event yet.
GoldFix: this is a big drama/distraction to getting business done and if it continues will matter as the Gov’t shutdown deadline nears again
Jolts Job Number- will likely indicate people not changing jobs, implying unemployment will uptick soon
Today:
Jpm Early Look At The Market
GSTrader 1 AI, Bonds etc
GSTrader 2 Stock Bear momentum
GSTrader 3 Top Stories