GOLD SOARS ON DEBT CEILING WALKOUT | Market Rundown
Why Russia May Be Selling Gold (Again)
Housekeeping: We just saw a very nice historical piece in Grant’s Interest Rate Observer on Gold, Rates, and TiPS which will be the focus of the Weekly GoldFIx Post on Saturday. Do not miss it.
Today:
Market Rundown
Connecting the dots between Oil and Gold.
Hartnett’s Flow Show Preview
Zen Moment: Mission Impossible
1- Market Rundown
Good Morning. As we went to press with this, The GOP walked out of Debt Ceiling negotiations while Powell started talking. All these market moves happened in the last 45 minutes.
Headlines just now:
*DEBT LIMIT TALKS HIT ROADBLOCK AS GOP NEGOTIATORS WALK OUT
GROUP OF DEMOCRATIC SENATORS TELL BIDEN TO PREPARE TO USE 14TH AMENDMENT TO AVOID DEBT DEFAULT
POWELL: SO FAR DATA SEEMED TO SUPPORT THE COMMITTEE'S VIEW THAT IT WILL TAKE TIME TO LOWER INFLATION
The dollar is down 40 now. Stocks are mixed and do not seem to care. Gold just popped $25.00 and Silver jumped 48c. Bonds are stronger in the front, weaker in the back
2- Russia May Be Selling Gold Again
Yesterday’s Market Rundown detailed why Gold was overbought.
[ EDIT- We are now also almost certain at least one big bank with oil and gold flows is short (“Must Read” attached at bottom) and telling institutional clients to sell as well. - VBL]
If that weren’t enough reason to worry. Now we have further confirmation that low Oil prices are making BRICS countries flinch a little. Namely the Saudis.
This was the headline at 7:52 a.m.
SAUDI CROWN PRINCE: KINGDOM READY TO MEDIATE BETWEEN RUSSIA AND UKRAINE
The Saudis, MBS no less is all of a sudden worried about the Ukraine/Russian war. What does that have to do with Russia and Gold? Good question.
Before answering that, it may help to quickly review the Saudi/US/Oil contract geopolitically.
GEOPOLITICS OF OIL IN WAR
Here is a 99 second voice-note posted this morning describing concisely (and accurately) the history of Oil Geopolitics between SA and the US in times of war going back to when they first agreed to price all oil in USD under the Pax Americana deal.
LISTEN HERE - Warning: trader-speak, profanity
While the Saudis are now friendly to Russia in the guise of OPEC+ and the BRICS there is only so much pain they will take for their new pals. Low oil prices trigger that pain.