Another blowout US CPI report triggers another false reaction in metals. Five months ago, gold would plummet $50 on the mere mention of Fed tapering.
Yesterday, gold rallies alongside silver despite a 70% chance of a 50-bp rate hike next month. Gold's ability to survive through the tightening landscape (especially flattening yield curves) reminds me of Bitcoin's ability to fight back in 2019 and 2020 despite stolen coins, shutdown exchanges and extraordinary volatility.
The other thing I want to highlight is the similarity between daily charts of GBP/USD and XAG/USD. I reiterated to our WGP since Jan 27 that I remained long GBP/USD, as long as the right shoulder support of 1.3350 held up. And it did just that before mounting a solid recovery ahead/after the BoE decision. Our bullishness in gold and silver was maintained as long as XAU/XAG failed the 82 resistance. It is no longer a secret that I emphasized the importance of gold/silver ratio over the past 5 months, the most recent lesson was seen in 15:04 mins of this video
