WEIRD DAYGold price reaction to the slightly higher than the 'experts' had decided the inflation number was going to be, was 'normal' ; that is, it dropped - the algos are programed very simply. But then the pretty strong recovery to where gold price has been hanging for awhile now, was unexpected. The inflation report seemed to write it in stone that interest rates are going up up up. So is it possible that some smarts came in? Could argue that there has been enough smarts all along that has kept gold price ' not bad' , which I would say $1700 is. Right now there are too many blokes that think gold price is totally tied to the US dollar , forever, for gold to go up on the escalating risks out there. For me, I think the 'bad' inflation read has totally removed the 'soft landing' idea, but actually that has mostly been gone for awhile. Now I would say the 'hard landing' is getting less likely. The Feds very manhood ( I know there is one token woman on the board) is at stake, so there is no doubt that rates are going killer high. Now the risk of the 'crash landing' is growing, and it seems the landing gear has fallen off and the airport runways are in flames. Don't be fooled that the UK gov backtracking on all there stupid plans will fix the problem there.
So then the weirdness for me today, is why did the US dollar drop? Interest rates are going up. The next inflation guess measurement will be after the next Fed meeting, and they will raise rates alot.
Finally the most puzzling is why did N American stock markets go up so much? I can see no scenario where higher inflation and therefore higher
interest rates is good for the indexes. And I can see no reason that if the markets are thinking ahead, they would see a more possible 'crash landing' as good.
What's a bloke to do?
And oh yes, gold producers and Endeavor share price continue to suck, and today even more.