Gold Busters. Manic Metals Report 10/23/2024

If there’s something strange. In your neighborhood. Who you gonna call?  Gold Busters!

If there’s something weird and it don’t look good ; who you gonna call? Gold Busters.  I ain’t ‘fraid of no gold!

As gold busted through another record high, the surge in gold is causing some unease among some in the invest community.

Gold has become a what I called the ‘hedge o Matic” for everything. Gold has been a hedge as the world is facing from an uncertain US Presidential election to dollar debasing, the rise of the ‘BRICS” and all out-World War fears. That is not to mention a run on inflation that the world has not seen in decades.

Is this an ominous sign of the future or is it gold just regaining its attraction of a real financial asset.

Mohamed A. El-Erian the famed Former CEO of PIMCO may have to call a gold buster as he wrote “Something strange has happened to the price of gold over the past year.”

He said “In setting one record level after the other, it seems to have decoupled from its traditional historical influencers, such as interest rates, inflation and the dollar. Moreover, the consistency of its rise stands in contrast to fluctuations in pivotal geopolitical situations.

Gold’s “all-weather” characteristic signals something that goes beyond economics, politics and higher-frequency geopolitical developments. It captures an increasingly persistent behavioral trend among China and “middle power” countries, as well as others. And it is a trend that the west should be paying greater attention to.

His conclusion was one that I reached was that “seems not just related to the desire of many to gradually diversify their reserve holdings away from significant dollar dominance despite America’s “economic exceptionalism”. There is also interest in exploring possible alternatives to the dollar-based payments system that has been at the core of international architecture for some 80 years. Ask why this is happening and you will normally get an answer that mentions a general loss in confidence in America’s management of the global order and two specific developments.

There is no doubt that this record run in gold in part has been about the lack of leadership from Biden Harris. Starting with the botched Afghanistan pullout without alerting our allies the crazy mixed energy policies along with the incredible amount of government spending has caused a lack of confidence in the ability of the United States to lead the world.

Silver tried to keep pace with gold on the breakout it’s pulling back a bit this morning I think the entire market wants to see what is going to develop we do get the Federal Reserve minutes today and that could have some impact on the value of the dollar that continues to go up along with gold the dual run of the US dollar to the upside along with gold is an explosive combination that means it gold can continue on its quest towards $3000 an ounce also it means that silver should at some point find its way to the old al yeah record high of  near $50. It may go as high as $70 long term.

Investing.com wrote that Benchmark copper futures on the London Metal Exchange steadied at $10,141.0 a ton, while one-month copper futures fell 0.5% to $4.6350 a pound. Both contracts wiped out a bulk of their gains through May despite hitting record highs, as a speculative frenzy died down and gave way to severe profit-taking.

Sentiment towards copper was also dented by weaker-than-expected PMI data from top copper importer China. China’s manufacturing sector unexpectedly contracted in May, while non-manufacturing activity grew at a slower pace.

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