After the CPI report, traders purchase stocks and gold.

• The U.S. dollar reached lows spanning multiple weeks in response to the CPI data.
• Gold rose back above the $1965 mark as traders concentrated on the weakened dollar and declining Treasury yields.
• The S&P 500 reached new peaks surpassing the 4475 level.  

On November 14, the US released October's inflation reports. The Inflation Rate dropped from 3.7% in September to 3.2% in October, differing from the analyst consensus of 3.3%. The Core Inflation Rate decreased from 4.1% to 4%, whereas analysts anticipated it to remain steady at 4.1%.

The FedWatch Tool suggests a 99.8% likelihood that the Fed will maintain the interest rate at the upcoming December meeting. Traders anticipate the Fed to commence rate cuts in May 2024.

Following the inflation data release, Treasury yields retreated to new lows. The yield of 10-year Treasuries dipped below the 4.45% mark, while the yield of 30-year Treasuries settled near 4.60%.

Decreasing Treasury yields exerted notable pressure on the US dollar, as traders began gearing up for rate cuts in 2024. The US Dollar Index regressed to multi-week lows at 104.65.

The weakened dollar and reduced Treasury yields provided substantial backing to the gold markets. Gold sustained its recovery, climbing back above the $1960 level.

SP500 surged as traders responded to the reports. The termination of the rate hike cycle is highly favorable for stocks, hence it's unsurprising that traders swiftly increased their long positions following the release of the inflation data. Currently, SP500 is striving to solidify gains above the resistance at 4475.