Oil prices have roller-coastered since last night's API report of the biggest crude draw since September (hurricane-impacted), but kneejerked higher after DOE confirmed a big crude draw (though less than API), the largest since Dec 2016 and 8th weekly draw in a row. Distillates saw a surprise build, crude exports hit a record high, and production rose again to its highest since Aug 2015.
API
Over the past three years, gold has found itself in an odd place: while it still remains the ultimate "safety" trade and store of value should everything go to hell following social and monetary collapse, when it comes to "coolness" it has been displaced by various cryptocurrencies, all of which have vastly outperformed the yellow metal in recent months. Meanwhile, central banks continue to pressure the price of gold to avoid a repeat of 2011 when gold nearly broke out above $2,000, putting the fate world's "reserve currency" increasingly under question.
As we await all US carmakers to report May auto sales, we remind readers that when we discussed last month's disappointing monthly car sales report, which badly missing expectations showing the fourth consecutive month of declining auto sales - the first time this has happened since July 2009 - we noted what may be the biggest concern for the auto industry: inventory days continued to trend higher as OEMs push product on to dealer lots even though sale-through to end customers has seemingly stalled.
If everything is so awesome (which the stock market alone is telling us it is), then why did US construction spending plunge 1.4% in April (worse than the weakest economists' expectations)?
So this is the 3rd worst drop in construction spending in 6 years...
The last time US construction spending plunged like this - global central banks unleashed a coordinated buyiung program to save the world.
This was lower than every one of the 41 estimates and missed expectations by 9 standard deviations...
During the past 6 years, Gold bugs have seen opportunities come and go in a struggle to recoup the gold bull market magic of a decade ago. Many investors are aware of the US Dollar’s impact on the price of gold. In particular, it has been the US Dollar’s strength that has kept the yellow metal at bay for the past several years. Could this be changing?