Apparently, it took a day for investors to fully digest and react to yesterday’s FOMC statement and updated economic projections for 2023 – 2025. Chairman Jerome Powell did not mince words yesterday delivering an exceedingly tough and hawkish written statement as well as responses to reporter's questions.

As expected, the Fed announced its decision to raise its benchmark rate by 50-bps. This takes the central bank’s “Fed funds” rate to between 425 - 450 bps (4 ¼% - 4 ½%). However, it was Chairman Powell’s comments regarding his policy outlook during the press conference that garnered the most attention.

Today the U.S. Bureau of Labor Statistics released the CPI index report for November. The report showed that inflation remains elevated above 7%, but has declined substantially, coming in at 7.1% year-over-year in November.

EDITORS NOTE: On today's video we will present an interview that was recorded last Friday. It was released today but still offers a comprehensive overview of my take on gold pricing, and inflation.

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Market technicians unanimously agree that the 200-day moving average is the line in the sand when it comes to technically determining if gold (or any other stock or commodity) is in a long-term bullish or bearish trend. While it is the longest time cycle typically used in moving averages it is been the accepted “go-to “study to determine the current long-term trend of a market.

Unlike yesterday’s double-digit gain in gold prices, today we see gold once again consolidating as it did on Tuesday. Tuesday’s price consolidation in gold indicated that the dramatic decline that occurred on Monday was more akin to a one-and-done scenario than the beginning of a correction. It was the equal or slightly higher low on Tuesday that was just as important as the fractional gains.

Gold futures basis the most active February 2023 contract opened in New York at $1783.30 and traded to a high of $1803.20 just above its 200-day moving average which is currently fixed at $1800.70. The price point of this long-term moving average at least for the short term became a technical level of resistance moving gold back below it.

Market participants are acutely aware of next week’s FOMC meeting which begins on Tuesday, December 13, and concludes the following day. Following the conclusion of the last FOMC meeting of the year, the Federal Reserve will release a statement which will be followed by Chairman Powell’s press conference.

Chairman Powell’s speech on Wednesday, November 30 caused extreme volatility leading to a dynamic price spike that took gold futures to an intraday high of $1817 on Thursday, December 1. On Friday, December 2 gold futures traded to the same intraday high but closed lower on the day at approximately $1809.

Both gold and silver had stellar performances this week. This week the precious metals moved on both the jobs report and chairman Powell’s speech on Wednesday.