Before the open, the CPI came in exactly inline (never mind that it's still running at over 3% and the core is running over the Fed's so-called target). The fed funds futures market maintained its roughly 50% chance of a hike in September. The initial reaction was for the S&Ps to pop a little. The dollar slumped. Yields fell, and gold & silver popped a little after already being higher overnight.

The S&Ps opened up about half a percent, and we immediately collapsed back to virtually the unchanged mark. Following a bounce into the afternoon to a lower high, we rolled over again into the close to go out back near the lower levels of the day but with a gain of just a touch.

The dollar initially slumped on the "cool" CPI data, but from that low, the DXY came roaring back and would eventually go out on the highs of the day and the week with a gain of just a touch.

Yields similarly slumped on the CPI and then firmed back up to go out on the highs but still down 2 bps in the 2yr and flat in the 10yr.

BTC continued to dog it up and fell a touch. Not to be a wet blanket, but I would also note that BTC's muted action doesn't bode well for the current rally in gold.

Gold jumped over $4425 overnight, and after pulling back to $4410 or so, the metal launched again on the CPI to as high as $4441 to mark the highs of the day. From there, the metal slipped as the dollar firmed and eventually printed a lot of $4396 in the afternoon before recovering $4400 and going out back up at $4409 for a gain of a percent to another new high for the move.

Silver similarly popped overnight to a new high for the move to nearly $67 and then retested that high in the wake of the CPI. From there, the white metal slipped back to nearly $65 before firming off that low into the close to go out at 65.32 for a gain of just under a percent.

The GDX gapped up to a new 2-month high and then reversed to go out near the lower levels of the day but still up a percent to a new high for the move.

Gold, silver, and GDX all closed above the 5 dma once again despite today's intraday reversals, and that simply fact leaves the bulls statistically in charge going into tomorrow's even dumber data point than today's, which is the PPI.

Again, I don't think this data means squat for the current rally in the metals. This rally has developed because the market was sold out, and it's going to continue until it exhausts in what is likely just another bear market rally. But I'm certainly open to the rally being more than that. It will need to prove it though.

In the meantime, the bulls still appear to be in control, and that's really all that matters.

My gold model probably remained at neutral but I don't have all my data in yet. Subscribers can check back in the AM for the final reading.

Positions: Short SPY, QQQ, MDY, and IWM. Long IBIT, DBA, and STRC.

Metals: I day traded some SLV 59 puts for a tiny gain and I reversed near the pit close, which happened to be the low of the day, and bought SLV 62 calls for Friday for 15 cents. I also bought GDXU and AGQ back. I would have rather bought a test of the 5 dma, but given the stickiness of prices, I went ahead and pulled the trigger.