So, inflation is up and the bean counters have moved from a likelihood of the Fed increasing rates by .75% with a 10% chance of .5% to the likelihood of the Fed increasing rates by .75% with a slim chance of 1%. So the stock market is SHOCKED AND APPALLED.
Anyhow, what interested me is that both gold (-1.38%) and silver (-1.54%)are down. OK, I can see miners like BHP and RIO who are linked to global industrial production getting pinged, but sales of gold/silver (or derivatives) means that they are no longer, in context of buying increasingly yielding bond derivatives, considered hedges against inflation. It furthers my theory that they are hedges against liquidity crises rather than a true (compared to a strong currency) store of value.
It also implies that the Fed is expected to win its ware against inflation. Another potential explanation is that they are being sold to financed short squeezes taking place as the market dips, which might indicate a baby with the bath water cycle and a potential buying opportunity.
No recommendations here, just thought it was an interesting anomaly.