Advisor Metals Precious Metals Market Update for September 12, 2024
Yesterday’s Consumer Price Index (CPI) numbers were disappointing. Although the overall CPI number was in line with expectations the core CPI number which excludes the volatile food and energy components increased .3% from July. This dampened enthusiasm for a one-half point FED rate cut and the expectation is now a quarter-point rate cut. The Dow Jones Industrial Average (DOW) promptly dropped over 400 points at the open and dropped over 700 points then rallied to close up 124 points. Is this the work of the President’s Working Group on the Financial Markets known colloquially as the Plunge Protection Team? And this occurred the day after the presidential debate? Hmmmmm.
Thursday morning’s overall Producer Price Index (PPI) number was in line with expectations with a .2% increase from July and the core PPI number which excludes food and energy was up .3% higher than expectations.
This has not deterred the stock or metals markets with the stock indices mostly unchanged and the metals up strongly with gold up $26.30 an ounce or 1.05% and silver up 49 cents an ounce or 1.71% as of this writing.