Breakout Alert on Lower Inflation
Happy Wednesday!
June CPI in the United States falls to 3.0%, below expectations of 3.1%.
Core CPI inflation fell to 4.8%, below expectations of 5.0%.
This is the first time Core CPI has come in below 5.0% since December 2021.
As a result, the USD is dropping. Why? The Fed has been telling the market for two years that they will stop raising rates once they feel inflation is under control.
US Inflation Rate (CPI), YoY % Change...
Jun 2022: 9.1%
Jul 2022: 8.5%
Aug 2022: 8.3%
Sep 2022: 8.2%
Oct 2022: 7.7%
Nov 2022: 7.1%
Dec 2022: 6.5%
Jan 2023: 6.4%
Feb 2023: 6.0%
Mar 2023: 5.0%
Apr 2023: 4.9%
May 2023: 4.0%
Jun 2023: 3.0%
12 consecutive declines.
In the first 15 minutes of trading, here is the response from precious metals:
This is called a breakout folks! Both gold and silver have been in a downtrend since early May but today’s price action has broken that down channel and is now poised for multi week run.
As always, thanks for reading and keep on stacking!