Gold

Editor’s Note: I will be speaking at an upcoming conference The Vancouver Resource Investment Conference in British Columbia on May 17 and 18. For more information please click the link above.

Gold and silver sold off sharply today. A force taking gold lower was dollar strength which then led to selling pressure.

Today the Bureau of Labor Statistics (BLS) released the latest inflationary data vis-à-vis the Consumer Price Index for April 2022. As expected by many analysts the data revealed that inflationary pressures continue to run exceedingly hot. According to the report, the CPI “increased 0.3% in April on a seasonally adjusted basis after rising 1.2% in March,”.

Traders and investors are waiting for the release tomorrow of the Consumer Price Index inflation report that will be released right before New York markets open. The CPI will probably be one of the most important economic reports to be released by the government this month.

The selling pressure continued as U.S. equities continued in their dramatic decline. On March 28, the S&P 500 hit an intra-week high of 4635. What followed was five consecutive weeks of dramatically lower values. If today’s selling pressure indicates the week ahead, we could certainly witness U.S. equities declining over the last six consecutive weeks.