The moves in gold, after the initial euphoria wore off, are indicative of what is still to come from the Federal Open Market Committee (FOMC) (spoiler, eye-watering rate hikes).

IMHO anyway ...

Gold was marked way higher after the US CPI came in lower than expected. And yeah, the zero m/m is good news.

But, core measures are still solid. And the headline rate of inflation is still way, way above the Fed target. Falling gasoline prices are welcome but food, shelter continued to march higher. Inflation is not going away any time soon.

After its rise gold began to track lower, even while the USD stayed weak. Fed talking heads (today it was Evans and Kashkari) warned Fed rates are still headed higher, this year and next. That didn't help the yellow stuff.

Really hope I am wrong on the 'eye-watering' path ahead for the FOMC, but I don't think I will be.

gold 11 August 2022