The Yen-tervention Weakens The US Dollar And Boosts PMs And General Markets

Shad Marquitz
October 21, 2022

Craig Hemke, Editor of TF Metals Report, joins us to review the rally we’ve seen in the precious metals and general markets today on Friday to close up the week, due to the intervention in the Yen from the Bank of Japan.  The rebound in the Yen, pressured the US Dollar and gave a boost to other markets based on the way the trading algos reacted.   This is just a short-term move, and not a medium-term reversal in the larger trend in the PMs, general markets, or the US Dollar.  However, it does foreshadow how the markets will react when the Fed eventually follows suit with other central banks, like what we’ve seen lately from the Bank of Japan and Bank of England, and when they likewise reverse course to underpin market stability.


Another positive that Craig points out, as it relates to the precious metals sector, is that silver still never broke down below it’s September lows, and it seems to have a more positive chart than gold lately.  With silver having bottomed first, between the 2 precious metals, and having reversed up sharply off the last low with a short squeeze rally, and then despite recent weakness it rallied again up above $19 to close up this week.


We wrap up with a more broad discussion of the media coverage to end the week reiterating that the Fed has been messaging they are at least going to be slowing down the amount of rate hikes over the next few meetings.  As Craig points out, the central bank was really far behind the curve in starting to hike rates to fight inflation, and now they are behind the curve in slowing down their tightening policy into a slowing economy.   For now all eyes remain on Fed policy and the trends and expectations around inflation.



Click here to visit Craig’s site – TF Metals Report.

    Oct 21, 2022 21:24 PM

    Fed’s Daly Says It’s Time To Start Talking About Slowing Rate Hikes

    Reuters – Oct 21, 2022

    “The U.S. central bank should avoid putting the economy into an “unforced downturn” by raising interest rates too sharply, and it’s time to start talking about slowing the pace of the hikes in borrowing costs, San Francisco Federal Reserve President Mary Daly said on Friday.”

    “The Fed is widely expected to raise its benchmark overnight interest rate by three-quarters of a percentage point for a fourth consecutive time at a Nov. 1-2 policy meeting, as the central bank battles the highest inflation in 40 years. The aggressive policy tightening has lifted that rate from the near-zero level in March to the current 3.00%-3.25% range.”

    Oct 21, 2022 21:33 PM

    While one day doesn’t make a market, I agree with Craig, that it was still a much nicer way to close up the week seeing the dollar roll over and the markets and Precious Metals rally into the green on Friday.

    By the close of afterhours trading, Gold was up about 1.6% to $1662, and Silver was up 3.8% to $19.40.

    GDXJ was up 5.85% today
    SILJ was up 5.23% today
    GOEX was up 5.24% today
    My portfolio was up 5.93% today

    Many companies had moves up in the high single digits or even double digits. Sure nice to see some green on the screen to close up the week!

    Not surprisingly, there were not any posts today about “glug, glug, glug down the drain the PMs go…” Hilarious.

      Oct 21, 2022 21:58 PM

      One of the big movers today in my portfolio was (MTA) Metalla Royalty & Streaming up over 16% on the day. That’s a pretty big daily move for a mid-tier royalty company.

      I don’t see any fundamental news that would have driven it higher on so much volume, but it was quite the blast off higher above the downward sloping trendline resistance. Nice to see a little life in some of these stocks today.

        Oct 22, 2022 22:03 AM

        Well, there was this recent video with E.B. Tucker on Stansberry Research where he promotes (MTA) Metalla Royalty throughout the course of the interview, so maybe that got some larger institutions or high net worth individuals interested.


        E.B. Tucker – New Era Will Emerge, Now Is Not the Time to Gamble With Your Money

        Stansberry Research – Oct 20, 2022

      Oct 22, 2022 22:13 AM

      Another stock that surged today was (LIO) Lion One up 14.5% on the day.

      That’s a whole lot better than a sharp stick in the eye… as the saying goes… 😉

    Oct 21, 2022 21:15 PM

    Site Visit Report – (DSV) Discovery Silver’s Massive Cordero Project

    David Erfle – The Junior Mining Junky – Friday October 21, 2022

    Oct 21, 2022 21:27 PM

    Right on! Nothing to get too excited about, but I can see smart $$ accumulating down here while juniors are nice & quiet