Optimism Forced Investors To Actively Buy U.S. Stocks, Gold And Silver

Technical Analysis: Gold/Silver Ratio Still On The Rise
Exchange Rates 16.01.2023 analysis

Market participants continue to react to the bullish market sentiment created by the CPI report, which was released on Thursday last week. Inflation was 6.5% year-over-year, marking the sixth consecutive month that inflation has declined from a peak of 9.1% in June.

According to the U.S. Bureau of Labor Statistics, after a 0.1% increase in November, consumer price index for all urban consumers (CPI-U) fell by 0.1% in December on a seasonally adjusted basis. And the all items index, before seasonal adjustment, increased by 6.5% for the year.

Core CPI inflation (excluding food and energy costs) rose 5.7% YoY, up 0.3% from the previous month. Although inflationary pressures have eased, the core consumer price index is still about three times the Federal Reserve's target of 2%.

At the same time, optimism forced investors to actively buy U.S. stocks, gold, and silver. However, they did not base market sentiment on recent Fed statements. The caveat is that the Federal Reserve has repeatedly reaffirmed its unwavering determination to keep interest rates high throughout 2023.

Many analysts believe that the Fed is bluffing because current rates are not sustainable throughout the year. Others feel that their vows to be transparent simply no longer exists.

U.S. equities, gold, and silver have benefited from this sentiment, leading to a strong rally in gold and silver, as well as moderate gains in major stock indices.

Dow added 0.33%:

Exchange Rates 16.01.2023 analysis

S&P 500 added 0.40%:

Exchange Rates 16.01.2023 analysis

and the NASDAQ Composite Index added 0.70%:

Exchange Rates 16.01.2023 analysis

Gold up $24.20:

Exchange Rates 16.01.2023 analysis

Silver up $0.41:

Exchange Rates 16.01.2023 analysis

If the Fed continues on its course of tightening, it could lead to one of the biggest Fed blunders in recent history. The Fed's days of data dependency only seem to matter when the data supports their assumptions

 

Relevance up to 10:00 2023-01-19 UTC+1 Company does not offer investment advice and the analysis performed does not guarantee results. The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Read more: https://www.instaforex.eu/forex_analysis/332378

Technical Analysis: Gold/Silver Ratio Still On The Rise

InstaForex Analysis

Instant Trading EU Ltd. is the CFD broker operating under the brand instaforex.eu, regulated by CySec with license number 266/15.

Besides CySEC, Instant Trading EU Ltd. is also supervised by the Czech National Bank (CNB), the Slovak National Bank (SNB), and the Polish Financial Supervision Authority (KNF). InstaForex.eu has branches in the Czech Republic, Slovakia, and Poland, where it provides support in local languages. InstaForex.eu is a member of the Investor Compensation Fund (I.C.F) which is an additional security for the client's funds.

InstaForex.eu offers access to around 2,500 instruments (CFDs in Stocks, ETFs, IPOs, Indices, Commodities, Forex, Cryptocurrencies, US Synthetic Stocks) and the MT4 and MT5 platforms,trading accounts in EUR, USD, PLN, CZK, GBP.

More information at: www.instaforex.eu

Follow InstaForex.eu on:

Twitter Facebook YouTube

 

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.88% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.