Housekeeping: Good Morning.
Gold Revaluation is a Process, Not an Event.
Today:
Premium: Why are Copper Prices Rising
Commentary: Chart Break
Markets Yesterday:
US equities were flat on Friday as investors continued to negotiate economic data and the Fed's next rate moves.
Premium/Markets:
Copper, Silver, and Gold
Script via ZeroHedge
Copper: Everybody’s favorite base metal is benefiting from the fallout from a dramatic short squeeze on the Comex that plays straight into long-standing hype about global deficits to come given the energy transition. Still, some physical indicators remain weak, so watch to see if copper’s prompt spread — which has been mired in an ugly, bearish contango — narrows more this wee
Gold: The Godfather of metals is up +18% YTD and is positioned to challenge $2,500/oz. Its latest leg higher appears to stem from a return to usual drivers: real 10-year Treasury yields are coming off a three-week drop, the longest run in a year. A decent batch of Fedspeak, as well as FOMC minutes will help to set the tone.
Silver: is flexing its muscles with gold, up 12% last week and roaring higher again on Monday. Watch to see if the ratio to gold realigns with the long-standing average. That gauge is now back to ~75 , closer to the ~68 since the start of this millennium
Market News:
"Artificial intelligence companies that have spent billions of dollars building so-called large language models to power generative AI products are now banking on a new way to drive revenues: small language models Source: FT
"Americans are kicking the can down the road on some more-costly, traditionally financed purchases as elevated inflation and interest rates bite. Source: CNBC
"There are enough unsold homes in China to house every family in California and New York combined. Beijing might finally tackle the problem with a huge outlay of cash, but investors should curb their enthusiasm. Source: WSJ
"When US markets reopen next Tuesday after the long weekend, everything will likely seem normal. It’s only after the close and in the following days that any cracks are expected to appear.Source: Bloomberg
"GameStop has announced plans to sell up to 45mn new shares, following a week in which its stock soared after the re-emergence of a popular day trader synonymous with “meme stock” investing.Source: FT
"More consumers are saving their workday lunch money to burn when they’re off the clock. Source: CNBC
Geopolitics: Circling the Drain
A helicopter carrying Iranian President Raisi and Foreign Minister Amir-Abdollahian crashed due to adverse weather conditions, according to state TV.
Israel said it is not involved the death of Iranian president Raisi, according to an Israeli official cited by Reuters.
Russia’s Defence Ministry said Russian forces took control of Starytsia in Ukraine’s Kharkiv region,
Some headlines via NewSquawk or DataTrek
Data on Deck: Chill Out
MONDAY, May 20 Speakers
TUESDAY, MAY 21 Speakers
WEDNESDAY, MAY 22 2:00 pm Minutes of Fed's May FOMC meeting (stale)
THURSDAY, MAY 23 PMI May 51.6 51.3 9:45 am
FRIDAY, MAY 24 8:30 am Durable-goods orders April 1
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