Typical algorithm response
Today's CPI data came out showing a hotter than expected rise of inflation for March, and the programmed algo's programmed to auto sell gold kicked in.
The program on automation that the Fed will fight inflation harder if the CPI increases from one month to the next calling for automatic decreased inflation protection directed at gold couldn't be more utterly flawed.
What rising inflation is showing is a need for inflation protection all the more and that the Fed has lost the inflation fight with current rates.
No one is expecting rate hikes to fight inflation now when the Fed wants nothing more than to drop rates to avoid an economic crises at this time.
The algos are just a program - not designed to think or reason selling gold via outdated automation in dire need of being scrapped.
Nonetheless , the temporary drop in the POG and temporary is all it will prove to be, has thinking foreign governments and certain individuals happily buying the dip.