You would think it would go up, wouldn't you? But look at how the media is reporting it! They say that its all wonderful. It went up but yes we expected it to at least for the core which is what we are supposed to believe in here in the US. Some economist actually said that! Food and Energy are too volitile to worry about. Is everyone nuts?! If you yank out all the idiotic "adjustments" in the report then we're actually running well over 10% inflation!!! Gold should be junping $50 today but its been pressure down in advance of today's report. Its all about controlling perceptions. But this has got to catch up and when it does - BAM! Well what do you expect - the govt and the powers that be will get away with what we do as long as we give then the power to do so. Evidenced by a candidates Obama and McCain. Frick and Frack and more of the same. Obama is for change but he won't tell us what he wants to change except that he wants to change his job. In that case he isn't lying. McCain is more of the same despite what he says. Its all about maintaining the status quo - from politics to the economy. Its all good. The numbers are cooked and until Wall Street traders learn to read the actual reports instead of the "Executive Summary" only then we are going to keep getting these garbage moves.
Follow this logic--- Inflation up--> Dollar up---> Gold down
The Fed is talking about watching out for inflation and the possibility of raising rates. Its just talk, they can't raise rates with an economy this weak so all they can do is say that they will. The "possibility" of higher rates helps the dollar.
So now, whenever a report comes out that says that inflation is rising, the dollar goes up and gold goes down.
This can't last forever but it can go on for a while. Sit tight.