Gold: Stealth Takeover of American Metals

Global Insights From a Precious Perspective

Mar 13, 2024

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Housekeeping: Good Morning.

Bretton Woods Three is a process, not an event

Today:

Too many tourists
Premium: UBS Comments on Golden Drivers and Dip Buyers

Yesterday’s Activity:

US equities rallied on Tuesday after data on February consumer prices came in around expectations

Market Commentary:

UBS CIO Comments on Gold

While we see potential for a pullback in gold in the near term, this does not mean the rally can’t go further over the coming year. We see gold being supported by several trends:
Continues in Premium

Everybody Out of the Pool

Let the pool empty out of the tourists and we can see where Gold’s real interest is.

Price Action

Gold- first wave of selling
Silver-
Miners- technically a break out
Oil- crack spreads will stay firmer now
BTC/ETH- spoofing comes to digital
Stocks- truly remarkable
Bonds-
Dollar-

Market News:

"Consumers continued to contend with higher inflation in February... February’s monthly rise was mostly due to increases in gasoline and shelter... Certain items have seen double-digit increases in prices year over year, including juices and drinks, up 27.2%, and motor vehicle insurance, with 20.6%... Certain consumer services, such as admissions to sporting events and tax return preparation, were up 11% and 9.8%, respectively." Source: CNBC- gas prices will continue to rise now, inflation baton has been passed
JPMorgan CEO Jamie Dimon yesterday warned the bank should wait for additional clarity before cutting,- more banks can fail
"Boeing’s problems are rippling across major U.S. airlines. Airlines are cutting back on flying and tempering plans to hire pilots and flight attendants as they prepare to receive fewer Boeing planes than they had planned at the start of the year." Source: WSJ- so close to an election
"Ultra-processed foods may not only affect our bodies, but our brains too. New research suggests links between ultra-processed foods—such as chips, many cereals and most packaged snacks at the grocery store—and changes in the way we learn, remember and feel. These foods can act like addictive substances, researchers say, and some scientists are proposing a new mental-health condition called “ultra-processed food use disorder.” Diets filled with such foods may raise the risk of mental health and sleep problems." Source: WSJ - labeled and monetized
"TikTok intends to exhaust all legal challenges before it considers any kind of divestiture from Chinese parent company ByteDance if the latest US legislation targeting the app becomes law... - its too late
Top MSM News Links

GEOPOLITICS

CIA Director Burns said there is "still a possibility" of a Gaza ceasefire deal but added that many complicated issues are still to be worked through.
US may urge partners and allies to fund a privately run operation to send aid by sea to Gaza that could begin before a much larger US military effort, according to sources cited by Reuters.
US Central Command announced that Houthis fired a close-range ballistic missile from Yemen toward USS Laboon in the Red Sea on March 12th but it did not impact the vessel, while CENTCOM forces and a coalition vessel successfully engaged and destroyed two unmanned aerial systems launched from Yemen.

OTHER

Russian President Putin said if US troops appear in Ukraine, Russia will treat them as interventionists and noted that from a military-technical point of view, Russia is ready for nuclear war but not 'everything is rushing to it'. Putin said Russia's nuclear triad is more modern than any other and if the US conducts nuclear tests, Russia may do the same.
Russian President Putin said he does not trust anyone and Russia needs signed guarantees when asked about an honest treaty with the West. Putin also stated that Russia will deploy troops and equipment to the Finnish border after Finland enters NATO, while he added that Sweden and Finland's entry into NATO is a meaningless step, according to RIA.- cold war iron curtain
Ukrainian Army Chief Syrskyi and Ukraine's Defence Minister Umerov held a phone call with US Defense Secretary Austin on weapons delivery to Ukraine, according to Reuters.
Poland’s PM Tusk said he talked about quickly unblocking US funds for Ukraine with US President Biden and there was a confirmation that the US will not hesitate to defend Poland if necessary

Some headlines via NewSquawk or DataTrek