E Gold Up Four Days In A Row

Today Wall St. is back in clover, with the DJIA over 35,000 despite having fallen in UK trading. Sterling was up sharply. The dollar is the key for explaining both moves, as the price of gold continues rising against the greenback, even as Britain now faces a potential move to repeat the referendum over Scottish independence. Legally the measure will have to be approved by England, not just Scotland, despite the kilted province having just voted a pro-independence majority for its own Parliament from the nationalists and the greens. The bad news is that the Indian variant Covid-19 appears to be more virulent than other mutations and risks causing renewed risks even for people who have been vaccinated. I hate to say this, but all human beings are at risk from a disease hitting some of them now because illnesses spread. Meanwhile, the haven dollar is looking fragile as gold is up a 4th day in a row and the dollar is at a nearly 3 month low.

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*Nothing beats a hack attack on an essential but privately owned US pipeline for boosting oil stocks. The hackers are said to be criminals from Eastern Europe. That explains continued rises in one of my oldest holdings, Schlumberger Ltd, SLB. It rose because of a groundbreaking partnership with NOV Inc, (formerly National Oilwell Varco), a maker of oilfield equipment. Cash-rich SLB will help finance oil and gas production.  

*Mexican Orbia Advance Corp (still traded as MXCHF but not showing in my brokerage account) got $1.1 bn in its latest bond issue according to sentidocommun.com.mx, with which we exchange news. It issued $600 mn for 5 years paying 1.875% and $500 for 10 years paying 2.875% and the stock rose to $2.69 in Mexico. TD Ameritrade says it is a $2.43 bid, $22.44 ask. Don't accept such numbers.

*Gold is up to $2183.5 per ounce, up thanks to the risks of the US from slow growth, inflation, and higher yields. SPDR Gold, GLD, is up 0.5% while Kirkland Lake KL, a miner, is up 0.55%.

*Oil is not today's top commodity, according to Geohring & Rozencwajc, Canadian writers about resources. The top commodity bull market is copper, now trading at more than double its level 5 years ago at $4.15/lb. There is more to come according to the analysis. G&H expect copper prices to head for $15/lb but, as usual when such predictions are posted, they don't say when this will occur. The reason however is new: not demand but supply. G&H writes: “Our models today strongly suggest copper mine supply growth will grind to a halt this decade, pushing copper prices far higher than anyone expects.”

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