We could be witnessing a big turning point in the metals markets today.
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Allow me to set up the story…
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Yesterday I recorded an episode of our Gold Newsletter Podcast with Jim Iuorio as our guest. We covered a wide range of issues, but also talked about the eagerly awaited CPI release that was coming up this morning.
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I noted that a “trader’s mentality” had been driving the markets for years, in that any new piece of data was interpreted not by how it would affect the economy or any other macro issues…but rather how it would affect Fed policy.
Every trader, and every asset class, was driven by how the hive-mind viewed the next Fed-policy headline.
Thus, data showing high inflation would have the opposite effect that it would historically. For gold, rising inflation used to be bullish, for example. But these days, a hot inflation number implied that the Fed would be more hawkish, so gold would actually be sold off.
For this reason, I predicted that both stocks and gold would take a tumble if today’s CPI number came in higher than expected.
Well, it did…and gold immediately sold off.
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Gold had risen about $16 before New York trading officially opened and the CPI numbers were released.
Then the numbers came: The headline CPI came in at 0.4% month-over-month, 0.1% higher than expected, while the core rate was up 0.2%, in line with the consensus.
The resulting annual gain was 5.4%, higher than last month’s 5.3% and the same level as June and July. Thus, we now have four consecutive months of 5+% inflation, with little hope that it will moderate anytime soon.
So much for “transitory.”
What was the market’s reaction? As I’d predicted, the hot CPI data led to an immediate sell-off in the stock market as well as gold. In fact, the yellow metal lost nearly all of its pre-market gains.
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But then something quite amazing happened: Gold and silver bounced right back.
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More than that, they kept soaring. Gold gained well over $30, or about 2%, while silver leaped about $0.60, or 2.5%. The gold stocks leveraged those gains, with the major indices leaping about 3.5%.
In other words, everything you want to see in a metals rally happened today.
Now, we’ve been burned before by false starts, so we need to remain cautious. But the fact that investor demand for gold overwhelmed the short-term trader selling could be the sign of an important shift in the metals market.
And with this year’s blockbuster New Orleans Investment Conference coming up in a few days, the timing is ideal.
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The Best Experts — In One Place At The Perfect Time
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As I told you on Monday, I’m very excited about this year’s New Orleans Conference because the timing is perfect, given the rising inflationary pressures and the Fed’s upcoming attempts to reign in its ultra-easy monetary policies.
Everything’s coming to a head…just when the Conference is about to begin next Tuesday…and just as dozens of the world’s top experts are gathering to reveal their top forecasts, insights and picks.
In fact, this grand event is featuring a “dream team” faculty, including…
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| Dr. Ron Paul, James Grant, Jim Rickards, Danielle DiMartino Booth, Jim Iuorio, Doug Casey, Rick Rule, Peter Schiff, Dave Collum, Grant Williams, Dominic Frisby, Tavi Costa, Lawrence Lepard, George Gammon…
…Brent Johnson, Peter Boockvar, Mark Skousen, The Real Estate Guys (Robert Helms and Russell Gray), Adrian Day, Gwen Preston, Adam Taggart and dozens more including yours truly. |
The bad news, of course, is that time is so short that many of you won’t be able to attend in person.
But again, as I noted a couple of days ago, we’ve got you covered with our virtual option for this year’s New Orleans Conference.
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The World’s Greatest Virtual Investment Event
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Last year we proved that we could produce a blockbuster virtual event. In fact, investors around the world told us it was the most valuable virtual event they attended.
This year, of course, we’re producing the New Orleans Conference in both formats — a live, in-person event that’s also going to be beamed out to investors around the world.
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You can participate in either one…and have full, on-demand access to recordings of all of the presentations from dozens of today’s top experts…and for a price that’s hundreds of dollars less than others will pay to attend.
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Fair warning: The registration fees for New Orleans 2021 will be rising in just a few days.
I urge you to CLICK HERE to get all the details and lock in your place while you still can.
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Red-hot inflation report launches the metals….png)
