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Gold Held the Line as Bonds Broke Down. Can It Survive CPI?

NowPress play to follow along0:00 / 14:13
Chapters13 segments · tap to seek
ticker lesson

Breakdown

0:09WTI· ticker

Crude oil surging 6% to 102

  • Crude oil surging 6%
  • Reaching 102
  • Upper half of wartime range
2:51Fed funds futures· ticker

Policy expectations shift

  • 39 basis points baked in
  • 74% chance of September hike
  • 80.3% chance by December
5:36Bonds· ticker

Bond auction results

  • 30-year auction swimmingly
  • Strong demand for bonds
  • Treasury buys 5.2 billion
8:08PPI· ticker

PPI data hotter than expected

  • 5.4% year-on-year
  • Hotter than 5.3% expected
  • Month-on-month rise bigger than April
10:52CPI· ticker

CPI data expected to rise

  • Monthly increase 0.4%
  • Headline 3.4% year-on-year
  • Core rate down to 2.4%
13:25S&P 500· ticker

S&P 500 breaks range

  • Breaking bottom of range
  • Opening door for downside
  • Range since early August
13:26NASDAQ· ticker

NASDAQ holds range

  • Holding 29,000 range
  • Still within range
  • Market risk-off
13:27US Dollar· ticker

Dollar stronger against some currencies

  • Dollar stronger today
  • Euro soggier
  • Australian dollar weaker
13:28Gold· ticker

Gold resilience amid market shifts

  • Gold resilient
  • Dollar attempts to rally
  • Cap on debasement trade
13:29PCE· ticker

PCE data showing disinflation

  • Headline numbers elevated
  • Core readings turning toward disinflation
  • Annualized three-month readings
13:30Treasury· ticker

Treasury buyback effort

  • Treasury buys 5.2 billion
  • Offered 10.5 billion
  • Selective buyback
13:31Front end of the curve· ticker

Focus shifting to front end

  • Shift to front end of curve
  • Response to oil and PPI
  • Treasury Secretary's line in the sand
13:32CPI· ticker

CPI data and market reaction

  • Possibility of buy the rumor, sell the news
  • CPI not moving rate hikes
  • Dollar sells off, gold rallies

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