The 'Sell America' trade ramps up with defensive risk action heavy as the US loses its way and financial markets brace for impact

The 'Sell America' trade is ramping up with defensive risk action heavy as post-weekend trading restarts. as the US loses it way and financial markets brace for impact

After starting the day at US$4983/ox, gold has shot up to US$5081/oz, a +2% jump. 

Silver started the day at US$103/oz and is now at US$108/oz, up almost +5%.

Platinum started at US$2471/oz and is now at US$2873/oz, a +16% surge.

This market action is going on while the US is still in its weekend and the US financial markets are closed. Parallel, the USD as measured by the DXY dollar index has fallen to mid 2022 pandemic levels. Since Trump's January 2025 inauguration, the USD has been devalued by -11%.

From its open today, the NZD has moved from 59.4 USc to 59.7 USc. So far in 2026 it is up +220 bps or +3.8%. It is a move that will help keep a lid on local tradeable inflation, but will not help our export competitiveness. But that export competitiveness effect will only be vs the US as most other currencies are rising against the USD too. And Americans are resigned to paying higher prices in the first place. After all they have to accept the tariff taxes they have imposed on themselves.

The rates referred to in this update are dynamic and will probably be changed when you read this.

For the record, of the equity markets that have opened today so far, Tokyo is down -1.6%, Hong Kong is down -0.2%, Shanghai is down -0.2%, and Singapore is down just -0.1% at its open. These hesitations will become clearer when European markets open tonight, and Wall Street returns after the weekend break. (US companies with global earnings may actually gain on the devaluing greenback, with foreign earnings worth more in these conditions.)

Bitcoin is lower so far today.