'Unhealthy' - John Feneck doesn't see much support for the market's big move up in November
The market has no "reason to throw a party" after this month's inflation numbers came in lower than expected, said John Feneck, founder of Feneck Consulting.
On Monday Feneck spoke to Kitco at the 2022 Precious Metal Summit Zurich.
Last week gold prices jumped 1% immediately following weaker-than-expected inflation numbers. The U.S. Labor Department said its much-anticipated Consumer Price Index rose 0.4% last month after a 0.4% rise in September. Economists were looking for an increase of 0.6%. The broader market rallied, too, with the S&P 500 jumping 5%, its biggest rally in two years.
Feneck is cautious. He noted that Fed officials emphasized hawkish sentiments both before and after the CPI release, and the Fed is still a long way from its inflation target of 2%.
"I don't personally feel that is a reason to throw a party, but the market did," said Feneck. "We are headed in the right direction, which is positive, but I still think we have a long way to go in terms of what the Fed wants.
"To rebound that sharply on Friday indicates to me that the market is still pretty unhealthy."
Coverage of 2022 Precious Metal Summit Zurich sponsored by Inventa Capital.