Not Wearing Off. Manic Metals Report 09/25/2024

Whine the big Chinese Stimulus package may be wearing off on some commutes it is not for gold and platinum.  Gold and platinum continue to drive higher as all the major metals pull back after yesterday China Stimulus rally.
Metals went wild after China as reported by the Wall Street Journal “China’s central bank announced a blitz of measures to support the country’s weakening economy and energize its moribund stock market, an unusually broad package that signals growing unease in Beijing after a run of downbeat numbers on jobs, spending and inflation.
Economists said that while the blast of support is welcome, it won’t be enough to pull China’s economy out of a low-growth rut marked by falling prices, a festering real-estate crisis and spiraling tensions over trade.
The People’s Bank of China said Tuesday that it would cut its benchmark interest rate and lower the amount of cash that banks need to hold in reserve—a bid to free up more resources for lending. It also said it would cut the interest rate payable on existing mortgages and lower down payments for second homes.
At a press conference in Beijing, PBOC Gov. Pan Gongsheng said further easing is in the pipeline, with another reduction in bank reserve requirements expected before year-end.
The central bank also announced it would offer 500 billion yuan in loans, equivalent to roughly $70 billion, to funds, brokers and insurers to buy Chinese stocks as part of an effort to lift the country’s ailing stock market. It said it would put up another 300 billion yuan to finance share buybacks by listed companies.
Of course, I do not want to criticize the Chuna move just because it has nothing to do with this Wall Street Journal Article.
The Journal wrote that “A prominent economist at one of China’s top think tanks was placed under investigation, detained and removed from his posts after he allegedly criticized leader Xi Jinping’s management of the world’s second-largest economy in a private chat group, according to people familiar with the matter.  The investigation of Zhu Hengpeng, who for the past decade was deputy director of the Institute of Economics at the state-run Chinese Academy of Social Sciences, comes as the Communist Party ramps up efforts to suppress negative commentary about China’s economic health.”
After the OECD lowered global growth forecasts overnight and the sugar high of the Chinese rate cut wears off it possible that it will give us a buying opportunity because we think that when the cuts come in. Gold is at record highs.