Today’s CPI came in right in line with expectations, removing at least for now, one potential headwind for precious metals. Headline CPI was 3.4% year-over-year, exactly as forecast, and down slightly from 3.5% in June.

Gold and silver initially paused following the release, but both are now starting to rally again. Importantly, the U.S. dollar moved lower following the CPI release, providing additional support for precious metals. You can see the relationship clearly in the 1-day WatchGold Gold/USD chart below.

There is still a long trading day ahead, and these markets remain highly sensitive to interest rates, the U.S. dollar, geopolitical headlines and shifting expectations for Fed policy.

However, an in-line CPI print means one less immediate headwind for the gold and silver rally to overcome.

Now the question is whether the metals can build on the move and whether the dollar continues to cooperate.

As always, let the market reveal its direction rather than trying to anticipate every move.

This commentary is provided for educational purposes only and should not be considered investment advice.

There is still a long trading day ahead, and these markets remain highly sensitive to interest rates, the U.S. dollar, geopolitical headlines and shifting expectations for Fed policy.

However, an in-line CPI print means one less immediate headwind for the gold and silver rally to overcome.

Now the question is whether the metals can build on the move and whether the dollar continues to cooperate.

As always, let the market reveal its direction rather than trying to anticipate every move.

This commentary is provided for educational purposes only and should not be considered investment advice.

CPI Comes In as Expected: Gold & Silver Pause, Then Resume Their Rally

CPI Comes In as Expected: Gold & Silver Pause, Then Resume Their Rally