Today the U.S. Bureau of Labor Statistics (BLS) released the PPI index report for January 2023.

Gold continues to trade under pressure moving to lower prices after yesterday’s CPI report for January indicated that inflation declined to 6.4% year-over-year. January’s CPI report came in lower by 6.4% year-over-year, than the prior month of December. However, analysts were expecting a larger decline with expectations that yesterday’s report would come in between 6.2% and 6.3%.

Traders and investors have been patiently waiting for today’s inflation report to glean information on whether or not the Fed will maintain its current monetary policy or adjust it to a somewhat looser policy. The report came in very close to estimates and did indicate that inflation is continuing to diminish.

Gold investors had a wake-up call last Thursday when gold futures hit $1974, the highest value of 2023. But that same day also marked the beginning of a correction. Gold would lose approximately $90 per ounce over last Thursday and Friday.

Gold investors had a wake-up call last Thursday when gold futures hit $1974, the highest value of 2023. But that same day also marked the beginning of a correction. Gold would lose approximately $90 per ounce over last Thursday and Friday.

For the most part, the uncertainty that defined market sentiment has pivoted to a sense of clarity about the future forward guidance of the Federal Reserve. It has become clear that the Federal Reserve will make good on its commitment to continue rate hikes and sustain those higher levels throughout this entire year.

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For most people, the concept of making money when the market is going up is easy. However, many are stumped when thinking of ways to make money when the market goes down.

The partial truth and nothing but the partial truth is a realistic way to characterize some of the statements made by Chairman Powell during an interview he held today with billionaire David Rubenstein. One of his statements that made many economists uneasy was, “A big part of inflation is related to the pandemic”. Powell’s statement was 100% truthful, however, not the whole story.

After factoring in two days of dramatic price declines in gold resulting in a loss of just under $90 per ounce, the fractional gains were significant. The significance is in the fact that gold (futures and spot) pricing advanced at all with such a strong dollar.

Traders, it’s great to be back in Honolulu and provide our subscribers and viewers with the latest information in gold or silver. We will release the presentation we gave at the VRIC 2023 later this week and available only to our premium subscribers. On Monday we will do an interview hosted by Robert Kiyosaki. There are other great things to look forward to which we will announce next week.