Since Monday morning’s post on China tariff talks being more about the freeing up the price suppression of gold, the shiny relic is up $26 an ounce. Trading above $1,340.
Stocks have moved more than 800 Dow points on the Fed lowering rates to prepare for the economic slowdown that will accompany a revaluation of the Chinese yuan.
Look for further confirmation on the currency front with the US dollar index falling below 95 in the coming weeks. The days of King Dollar that Larry Kudlow use to speak about are waning since part of the Chinese talks revolve around setting up a basket of currencies and commodities to replace the dollar as the benchmark currency.
While these new moves will not happen very soon the trend is set in motion.
Friday we get the May jobs numbers, which will probably be higher than the street’s estimate of 177,000. This will cause Fed chief Jerome Powell some problems with his rate cut story, since low unemployment and little official inflation do not make for a change in interest rate policy.
So there may be a pullback in stocks Friday as Wall Street pros churn shares lower on possibility of no cut, but the trend is for at least two cuts this year.