All Eyes On CPI Report
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The Consumer Price Index is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them. Changes in the CPI are used to assess price changes associated with the cost of living; the CPI is one of the most frequently used statistics for identifying periods of inflation or deflation,
This is the number everyone is waiting for; why, I have no idea. The numbers are never right, can cause some extreme market action and will be revised later. Traders are looking at this number to gauge whether interest rates are going to continue to rise. The stuff that gets stripped out of this report renders it worthless in my opinion. Most of the information has been priced in to the markets and nothing will change the Fed and central bank's manipulation,
Whatever the number is, it promises to bring some excitement early. Afterwards we expect a resumption of the overall trend, which is lower in equities and gold. Gold has rallied the last couple of days but not nearly what it should have, and expectations are to see a sell-off to $1,300. Early volatility should lead to selling pressure in metals and equities.