Good Morning: Look for the second installment of our series on Gold and China today (part one is here). It will give real insight on how China has used Gold to navigate the economic hazards presented it since Nixon took us off the Gold Standard. The ebb and flow of Sino-US relations can be seen clearly this way. It will cover the era from 1971 through present day, and will once again be a joint effort between us and Bai Xiaojun. The insights we got from Bai were top notch.
Contents:
Market Rundown
Market Comment
Reports:
Goldman’s Economist on Rest of year markets,
MUFG Commodity report,
TD Weekly Focus
Zen Moment: Chicken Salsa
1- Market Rundown:
The dollar is up 12. Bonds are slightly weaker having been down considerably more. The S&P500 is down 50bps. The Nasdaq is down 70bps and the Dow is down 40. Gold is down $5 and Silver is down 3c. Oil is down 65c and Grains are mixed. Bitcoin and Ethereum are straddling unchanged right now.
Jolts Data is at 10a.m.
2- Market Comment:
Good Morning: Not gonna lie.. It has been tough watching the carnage even while we know what is going on and why it is happening. But, even though the prize of full and proper price transparency alludes us, much has happened moving towards that eventuality this past 12 months.
We did a podcast for our friends at Arcadia Economics describing where metals are now and where they are headed from here. Strong recommend listen for seasonality and keeping your sanity.
Gold and Silver people can now take comfort in knowing, not just believing, that prices are distorted lower by market structure, individual traders, and lopsided press coverage. The persistence of the Shanghai premium tells us this.