Today’s CPI report came in well underestimates even by the forecast by the Federal Reserve Bank of Cleveland’s Inflation Nowcasting.

Financial Market analysts and market technicians understand that it is fundamental events that cause price changes in all asset classes including stocks, commodities, goods, and services.

Gold futures basis the most active December contract opened in trading today at $1678. After trading to a low of $1667, December gold broke strongly above the 50-day moving average in a single hour.