Gold and Silver Prices Bounce of the Lows and Move Higher

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	Silver Inventories Plummet at LBMA and COMEX
	Eligible inventories are NOT available to deliver against maturing COMEX contracts unless the owners specifically elect to reclassify such holdings to registered status. . . . . Patrick A. Heller
	Is the US Dollar Too Strong?
	For most of this year one or both of those forces have been in operation. Much of the dollar strength in the first quarter was about the Fed just moving more aggressively . . . . Goldman Sachs Insight
	Gold Nosedives to Two-Year Lows Below $1670
	US Treasury yields jumped on expectations that the Fed might hike rates between 75 or 100 bps. The US 2-year bond yield, the most . . . . FXStreet Team
	Russian Gold Rerouted to China Amid Western Ban
	Other experts speculated that China, one of the world’s top bullion buyers, may be just one of several important new . . . . Donat Sorokin
	The CPI Report: Rally Time For Gold?
	Oil is the world's biggest medium-term driver of inflation. If Western governments waved huge "Drill, baby drill!" banners today, . . .Stewart Thomson
	China’s Gold Market in August: Local Price Premium Extended Its Rise
	We believe such strength mainly came from manufacturers stocking up in August ahead of the upcoming peak gold . . . . Ray Jia

Last Tuesday, the August Consumer Price Index (CPI) came in at an annual increase of 8.3%. This was higher than had been expected and many financial markets sold-off immediately.
Why? Because many analysts believe that a higher CPI number doesn’t give the Federal Reserve Bank any room to start lowering interest rates.

The following are key financial indicators and precious metal prices with price changes since the August CIP was released on Sept 13th 2022:

Last week was ugly for Gold investors, with the price dropping to a 2-year low of $1,660.40 per ounce on Thursday. During August and early September, Gold tested the key $1,700 level and held. Gold traded below the key $1,700 level in heavy volume and set off the short-selling, which took Gold to the lowest price of the day. With another Federal Reserve meeting scheduled for this week and U.S. August retail sales surprising increase by 0.3%, precious metal markets are on the defense.

Over the weekend Russian President Vladimir Putin met with his Chinese counterpart Xi Jinping in Uzbekistan with Moscow seeking to shore up relationships. I understand that other than support for the Ukraine war, there were other important issues on the agenda. There are rumors that China wants a new oil pipeline from Russia to China, via Mongolia. Future sales of crude oil, natural gas and Gold are highly likely to have been discussed. A sharp drop on spot prices for crude oil and Gold have given the Chinese an advantage in negotiating a good long-term price. I’ll update our readers when I see credible news.

Russia is now selling its oil, gas and Gold to select countries like China, Turkey and India with hefty discounts. Russia is unable to sell crude, gas and Gold to other customers for a sizeable profit. That not only cuts Russia's revenue, but it also causes Russia to lose much of its world power and influence.

Today: The Gold price sold-off during Asian trading again, dropping $14 to a low of $1,659 per ounce. As trading rolled out of Asia into Europe, buying appeared and Gold quickly rallied $8 per ounce and kept on moving higher when it moved into the U.S. markets. European trading was light, because London markets were closed for the Queen's funeral.

Silver held up well last week in spite of the Gold sell-off. Silver spent more of last week trading above the key $19 per ounce level as most of the selling pressure was on Gold. Demand for physical Silver investment coins and bars has continued to be strong and premiums are holding. Silver closed the week at $19.30 per ounce, down $0.60 for the week. The Silver-to Gold ratio rallied back to 86-to-1.

Today: Silver followed Gold lower during Asian trading, reaching a low of $19.21 per ounce. But, like Gold, Silver rallied back in later trading above the $19.50 level.