The market has no"reason to throw a party" after this month's inflation numbers came in lower than expected, said John Feneck, founder of Feneck Consulting.Last week gold prices jumped 1% immediately following weaker-than-expected inflation numbers. The U.S. Labor Department said its much-anticipated Consumer Price Index rose 0.4% last month after a 0.4% rise in September. Economists were looking for an increase of 0.6%.
Feneck is cautious. He noted that Fed officials emphasized hawkish sentiments both before and after the CPI release, and the Fed is still a long way from its inflation target of 2%. "I don't personally feel that is a reason to throw a party, but the market did," said Feneck."We are headed in the right direction, which is positive, but I still think we have a long way to go in terms of what the Fed wants.Coverage of 2022 Precious Metal Summit Zurich sponsored by Inventa Capital.