Gatland's squad go down by 33 points to 19 at Twickenham
Wales remain second in the rugby union world rankings this morning.
They could have leap-frogged New Zealand but saw their 14-match unbeaten run ended with a 33-19 defeat to England at Twickenham.
Captain Alun Wyn Jones earned a record 135th cap.
The hosts led 21-7 at half-time as converted scores from man-of-the-match Billy Vunipola, late call-up Joe Cokanasiga and Luke Cowan-Dickie put them in control at Twickenham.
Wales threatened to mount a fightback early in the second half with converted tries from George North and Wyn Jones, but skipper for the day George Ford kept the scoreboard ticking over with his boot to bring the away side's run of 14 straight Test wins to an end.
However, head Coach Warren Gatland said that with the two sides meeting again in Cardiff on Saturday, he's not too disappointed with the result:
"Its not a compeition stage: The Six Nations is a competition, the World Cup is a competition, so you have to take that on the chin. You've got to look at the negatives, also some of the positives and some of the opportunities we did create."