The dollar is rising, the metals are collapsing

Contrary to popular beliefs that the dollar is cheaper in times of trade wars, we are seeing the extraordinary strength of the US currency. Earlier this morning, the euro fell to 1.1560 against the dollar and is about to test the critical support at 1.1500. What will happen after this test will most likely depend on the medium-term movement of the single currency.
Otherwise, green money reached a 14-month high against the yuan. China urged a vengeance on Thursday if the US threatens to raise tariffs on exports of Asian-produced goods after US President Donald Trump instructed his trade officials to consider raising customs duties on imported Chinese goods from 10 to 25% of Chinese goods for $200 billion.
But as the US imports much more from China than China from the US, investors see the deployment of the trade war, causing worse trouble for the Chinese economy.
Serious problems due to the appreciation of the dollar have metals. Gold went down this morning near the psychological limit of $1,200 per ounce. Silver is traded at 16.20 dollars per ounce and platinum at $823.

Interest rates on 10-year US government bonds again over 3%

Interest rates on 10-year US government bonds rose again above the exceptionally high level of 3%. This has led to a new appreciation of the dollar against other major currencies, and especially against European currencies.
Interest rate hikes are in the midst of new concerns about the breakdown of US-China talks. There are concerns that trade clash and war between the two sides is inevitable.
This is expected to trigger a rise in inflation and hence lead to a stronger rise in interest rates than current expectations.
Otherwise, the rise in the dollar has already had a very negative impact on the levels of metal trade. Gold went back to trading at $1,310 and platinum and silver fell to $903 and $16.30 per ounce.
Interest rates on 10-year US government bonds rose 2.3 basis points to 3.018 per cent on an annual basis, while those on 30-year bonds added 1.9 basis points to 3.148 per cent on an annual basis.
The popular interest spread between 2 and 10-year bonds remained at a level of 46.6 basis points, or close to its lowest levels in nearly a decade.
It is precisely the potential reversal of the interest rate curve, James Bullard warned yesterday. According to him, the interest rate curve may gain a negative slope at the end of this or early next year.

Platinum and silver became even cheaper than gold

Platinum and silver continue to fall cheaper than gold. Indeed, yesterday, platinum was threateningly approached the psychological limit of $900 per ounce. Silver tried to test its bottom at $16.15.
And while at this stage both metals are able to hold on to the important support, a breakthrough could initiate extremely massive sales and closing down long positions after triggered stops.
It is quite possible to see spikes in platinum and especially in silver, which is extremely volatile and is traded at relatively weak volumes.
Such a spike can safely take the silver with a dollar, and why not with a dollar and a half down. Recall that there are plenty of holidays in many places around the world, which would further weaken the liquidity.
So, all investors should be extremely careful. Meanwhile, we see how the platinum-gold ratio is already close to its record bottom after it is at a level of 0.6870.
At the same time, the gold-silver ratio is at a level of 80.5, which is also extremely high, according to historical standards.
By comparison, in the long run, this ratio was about 40, as every time when it reached this level, it rebounced above the psychological limit of 80.