Market participants continue to react to the bullish market sentiment created by yesterday’s CPI report. Inflation came in at 6.5% year-over-year last month, which is the sixth consecutive month that inflation has diminished since the peak of 9.1% in June.

Considering that as recently as June we had the highest level of inflation recorded in the last 40 years today’s CPI report from December was a welcome change as inflation continues to slowly dissipate. Just six months ago overall inflation peaked at an alarming 9.1%. The historical rise in inflation was a long process after coming in at 0.329% in April and 0.118% in May 2020.

It is a given that the potential for inflation to decline in the December report. The assumption that inflation continues to diminish and has for the most part been factored into market pricing., Tomorrow’s Consumer Price Index will occur after the strong and hawkish speech by Chairman Powell delivered yesterday at a central bank conference in Sweden.

Now that the jobs report has come and gone market participants are awaiting two exceedingly important events that will occur today and on Thursday. Today the chairman of the Federal Reserve, Jerome Powell delivered a speech at 9 AM EST at a central bank conference in Riksbank, Sweden. Then on Thursday, the BLS (US Bureau of Labor Statistics) will release the CPI report for December.

Gold futures and spot pricing closed moderately higher today. However, traders and investors bid the precious yellow metal lower with dollar weakness accounting for all of today’s gains. As of 4:40 PM EST gold futures basis, the most active February contract is currently up $5.80 or 0.32% and fixed at $1875.60.