Will We See A Repeat of The Fed’s 2013 Taper Tantrum?

Silver prices are likely to remain range bound through this month as central banks around mull dialling back their massive pandemic-era stimulus.

Earlier this week, Fed policymakers signalled that the central bank remains on track to trim its $120 billion in asset purchases this year, despite the slowdown in jobs growth seen in August and the impact of the recent COVID-19 resurgence.

Elsewhere, the European Central Bank’s announced plans to slow down bond buying under its pandemic emergency purchase programme (PEPP) in response to higher inflation.

With the ECB meeting now in the rear-view mirror, traders are now shifting their attention to the Federal Reserve’s September monetary policy meeting. This key event is also likely to be dominated by the narrative of surging inflation, which is now beginning to snowballs into a problem that central banks across the world can no longer control.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Will U.S Jobs Data Move Gold Prices Higher Or Lower?

With the Fed’s Jackson Hole meeting in the rear-view mirror, August’s U.S Employment Report is anticipated to be the next major event for the market.

There will be a huge focus on Friday’s data, especially as the jobs number could determine how soon the Fed begins tapering its massive quantitative easing program.

During his speech to the Jackson Hole Economic Symposium last week, Fed Chair Jerome Powell acknowledged that policymakers expect to taper back their $120 billion a month quantitative easing program this year, but emphasized that the labour market has not yet improved enough to start the taper.

A strong recovery in the labour market is now one of the most pivotal prerequisites that will influence the Fed’s decision on when to taper. On the flip side, however, uncertainty of COVID spreading again at a rapid pace is swiftly becoming a real wild card for the labour market, just as it has for the broader economy, which could derail the Feds plans.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Commodity Prices Surge As Fed Backs Away From Interest Rate Hike – What’s Next

In a virtual speech to the Jackson Hole Economic Symposium on Friday, Powell revealed that the U.S recovery appears to be making progress, but warned that ending stimulus measures too early would be damaging for the economy as a whole – especially as the highly contagious Delta variant of COVID continues to present a “near-term risk” to economic growth.

The commodity markets saw immediate gains following Powell’s speech.

The star performer was Crude Oil with Brent rallying 11% to post its biggest weekly gain since June 2020, while WTI surged 10% to post its strongest rise since August 2020.

The bullish momentum also split over into the metals with Gold prices soaring over $25 on the day to hit a 4-week high of $1820 an ounce. While Silver prices jumped almost 5% – racing back above $24 an ounce.

Elsewhere, the industrial metals skyrocketed to multi-year highs with Aluminium prices hit three year highs and Palladium prices soared 9% – to post their biggest one-day gain since May 2020.

Looking ahead to this week, the key market-moving events that traders will be watching closely include; U.S Non-Farm Payrolls Data, ISM Manufacturing PMI, ADP Employment Change and U.S Jobless Claims.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Gold Prices Retreat As Traders Book Profits – What’s Next

Gold has been on an explosive run throughout August, with the precious metal notching up a third consecutive week of gains. Gold prices surged back above the key $1800 an ounce mark on Tuesday after briefly dipping below $1680 an ounce earlier this month.

Looking ahead to this week, the biggest market-moving event that traders will be closely monitoring is the Fed’s annual Jackson Hole Economic Policy Symposium.

Traders expect Fed policymakers could use this event as a platform to announce plans around the highly-anticipated wind down of their massive quantitative program as well as interest rate hikes.

However, there is huge potential that the Fed could surprise the markets by making a U-turn on their decision to tighten monetary policy too quickly. The rapidly spreading COVID variant now has many traders thinking the Fed will have to wait longer to reel in its easy-money policies to avoid any negative repercussions on the U.S economy. This ultimately means any new information will likely open the door for fresh volatility ahead.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

What’s Next For Commodity Prices As Focus Shifts To Fed’s Jackson Hole Meeting?

Traders expect Fed policymakers could use this event as a platform to announce plans around the highly-anticipated wind down of their massive quantitative program as well as interest rate hikes.

Last week, Fed officials signalled the start of tapering was edging closer. According to the meeting minutes from the Federal Reserve’s July meeting, most policymakers favour tapering this year.

However, there is huge potential that the Fed could surprise the markets by making a U-turn on their decision to tighten monetary policy too quickly, especially in the light of the rising delta variant risk. This ultimately means any new information will likely open the door for fresh volatility ahead.

Also on trader’s radar this week will be U.S. Q2 GDP data and the Fed’s preferred inflation measure – PCE data.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

All Eyes Turn To FOMC Minutes For Gold’s Next Big Move – What’s Next?

Looking ahead to this week, trader’s attention has now shifted to the release of the Federal Reserve’s July Monetary Policy Meeting Minutes, due out on Wednesday.

Earlier this month, senior officials at the Federal Reserve hinted that the central bank could start to taper by September, if the July and August jobs report show growth in the 800,000 to 1m range.

The eagerly awaited U.S employment report, showed the labour market added 943,000 jobs in July – its best gain in 11 months.

This hot data now positions, the Federal Reserve’s July Monetary Policy Meeting Minutes as a major focal point for the markets.

Traders will be closely monitoring whether the hawkish comments made by some of the Fed officials during the last few weeks match up with the notes from the July Meeting Minutes or completely contradict them.

Right now, there is a lot we don’t know about the Fed’s thinking on interest rates and timeline around the highly-anticipated wind down of their massive quantitative program. This ultimately means any new information will likely open the door for fresh volatility ahead.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Commodity Prices Near Key Levels As Fed Takes Centre Stage – What’s Next?

Rapidly surging inflation, ultimately means everything from food, energy, housing to transportation prices have gone up this year at their sharpest pace since 1991. That trend is likely to continue with many economists now forecasting that inflation will climb to between 6% and 9% by year-end.

Looking ahead, the hot inflation data now puts huge focus back on the Federal Reserve.

Trader’s attention has now shifted to Minutes from the Fed’s recent monetary policy meeting. The minutes are expected to provide further clarity into the central bank’s view on surging inflation as well as fresh clues about the highly-anticipated wind down of their massive quantitative program.

Elsewhere this week, U.S Retail Sales data will be another major focal point for traders, especially as consumer spending drives 70% of the economy and the sentiment reading is a very closely watched gauge that will play a critical role in the timing of the Fed’s tapering plans.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

What’s Next For Gold Prices As Critical Inflation Data Looms?

CPI Inflation data for July, which is scheduled for release on Wednesday will take centre stage this week – especially after June’s CPI reading showed the largest monthly gain in Inflation since 2008 with CPI jumping from 5% to a scorching 5.4%. While, core CPI Inflation rose from 3.8% to 4.5%, which is its sharpest increase in three decades.

So far this year, the Fed has remained adamant that inflation will run hotter than its traditional 2% goal, as the global economy continues to rebound from the pandemic.

Federal Reserve officials have also dismissed surging inflation as being only ‘temporary’. However traders are unconvinced and believe that the Fed has lost control over inflation.

How long inflation will continue to rapidly rise and how high it can go has become a key question about the U.S recovery, central to discussion of the Biden administration’s ambitious spending plans and the Fed’s timetable for tightening monetary policy.

It could take several more months of data to settle those debates, which will likely open the door for fresh volatility ahead.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Precious Metal Prices Near Key Levels As Attention Shifts To Inflation – What’s Next?

Prior to the data release, senior officials at the Federal Reserve suggested that the central bank could start to taper by September, if the July and August jobs report show growth in the 800,000 to 1m range.

More big market moves could be on the horizon this week as traders shift their attention to consumer and producer price inflation data.

Last month, the Consumer Price Index, which is the Fed’s preferred measure of inflation, jumped from 5% to 5.4% in June – its highest level since 2008. While, core CPI Inflation rose from 3.8% to 4.5%, which is its sharpest increase in three decades.

Elsewhere this week, traders will also be closely watching Federal Reserve speakers for clues on how close the central bank is to announcing plans to taper its massive quantitative easing program. Any new information will likely open the door for fresh volatility ahead.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

What Does Biden’s $1 Trillion Dollar Infrastructure Plan Mean For Silver Prices?

The executive order is part of Biden’s broader $1 trillion Green Energy and Infrastructure spending plan, to transform the economy and firmly position the United States an industry leader the Electric Vehicle market.

Electric Vehicles currently represent 2% of total global vehicle sales and are forecast to exceed 25% of total sales by 2030 – that’s a whopping 1150% increase in growth by the end decade.

Biden’s Electric Vehicle revolution, ultimately means that the U.S is going to need more commodities.

Specifically industrial metals including: Copper, Palladium, Platinum, Lithium, Nickel and rare earth metals for batteries and renewable energy technology. Above all, it needs Silver – and lots of it.

Silver is a key component in President Biden’s ambitious $1 trillion dollar plan – as it will go into the Electric Vehicles, as well as the batteries, fuel cells and plug-in charging stations to power them – as well as the cables connecting new wind turbines and solar farms to the electric powered grid.

Currently, Silver prices are trading near $25 an ounce, which presents an incredible opportunity for traders to gain exposure in the metal before it really takes off.

Goldman Sachs see silver prices rising to $33 an ounce in H2 2021, boosted both investment and industrial demand for the precious metal – and our research suggests similar.

In my opinion, Silver is still definitely the best trade right now and any substantial pullbacks should be viewed as buying opportunities.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Precious Metal Prices Hold Steady As Attention Shifts To U.S Jobs Data – What’s Next?

Last week, Fed Chair Jerome Powell acknowledged that inflation has risen much faster this year than he and other senior Federal Reserve members predicted. He also flagged the possibility that inflation “could turn out to be much higher and more persistent in the second half of 2021, than the Fed is expecting”.

The major market-moving event this week that is likely to push Precious metal prices one way or the other will be Friday’s closely watched U.S Nonfarm Payrolls Report from July.

If we see the Nonfarm Payrolls data surprise to the upside – that is going to intensify the debate that the labour market recovery is making its way to ‘substantial progress’ and lead to heightened volatility across the precious metals complex.

On the flipside, any disappointment on the employment front will ultimately be viewed as supportive for the precious metals.

Elsewhere, other key events that traders will be watching closely this week include; ISM Manufacturing PMI data, ADP Employment Change and U.S Jobless Claims.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Will Silver Outperform Gold In Q3 2021?

Sentiment towards the precious metals complex turned bullish after Fed Chair Jerome Powell stated that the rising cases of the Delta variant may weigh on a recovery in the labour market and that the central bank was still “along away” from considering raising interest rates.

The main takeaway from the Federal Reserve’s July policy meeting was that the central bank remains firmly committed to their massive quantitative easing program, while allowing inflation to run hotter than usual, for some time yet.

Currently, Silver prices are trading near $25 an ounce, which presents an incredible opportunity for traders to gain exposure in the metal before it really takes off.

Silver is not only an excellent inflation hedge, but it’s also a key component in everything from electric vehicles, renewable energy to 5G technology. Based on our proprietary research, photovoltaic demand for silver could exceed 3000 tonnes in 2021, while the 5G rollout – which is only just beginning – will be a major driver of demand for years to come.

Goldman Sachs see silver prices rising to $33 an ounce in H2 2021, boosted both investment and industrial demand for the precious metal – and our research suggests similar.

In my opinion, Silver is still definitely the best trade right now and any substantial pullbacks should be viewed as buying opportunities heading into August.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Gold Hovers Near $1800 As Attention Shifts To Fed – What’s Next?

Earlier this month, the Consumer Price Index, which the Fed uses as its preferred measure of Inflation, jumped from 5% to 5.4% in June – to its highest level since 2008. Meanwhile, core CPI rose from 3.8% to 4.5%.

The hot reading now positions, the Federal Reserve’s July meeting as a major focal point for the markets.

There’s no doubt that the Fed is in a tough position. On the one hand, higher inflation calls for the tapering of its historic quantitative easing program. However, on the other hand, the potential risks to growth from the highly contagious COVID Delta Variant – does not warrant a change in their monetary policy stance.

The conflicting narratives between higher inflation concerns and worries of slower growth in the second half of the year will make the Fed’s job especially difficult this time around.

If one of two 5 letter words – either DELTA or TAPER make their way into the FOMC statement that will inevitably set the stage for how precious metal prices will trade throughout the rest of this quarter.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Precious Metal Prices Hold Tight Range As Attention Shifts To FED – What’s Next?

The major macro event that traders will be closely watching this week is the Federal Reserve’s Policy Meeting. This will be followed by a press conference chaired by Jerome Powell, which always has the potential to move the markets.

Traders will be watching to see if the Jerome Powell reveals any fresh clues about the anticipated wind down of the Fed’s massive quantitative program. They also want to know how the Fed views the potential economic risks from the rapidly spreading COVID delta variant.

Another major focal point of this week’s Fed meeting is expected to be Inflation.

Data released earlier this month showed U.S Inflation accelerated from 5% to 5.4% in June – the highest on record since 2008. While the core annual rate of inflation rose from 3.8% to 4.5%. Economist now forecast that Inflation will climb to between 6% and 9% by year-end.

Elsewhere this week, traders will also be paying close attention to second-quarter GDP numbers as well as the Fed’s preferred measure of inflation – The Core PCE Price Index.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Keep An Eye On The Big Picture For Silver Prices

However, if you look at the bigger picture, fundamentally, nothing has changed. Central banks around the world remain firmly committed to their massive quantitative easing programs, while allowing inflation to run hotter than usual, for some time yet.

And let’s not forget the whole ‘Infrastructure spending boom and Green Energy Revolution’, which is currently taking shape across the global economy.

That in itself presents an incredible opportunity for traders to increase their exposure in Silver at huge discount before it really takes off.

Silver is not only an excellent inflation hedge, but it’s also a key component in everything from electric vehicles, renewable energy to 5G technology. Based on our proprietary research, photovoltaic demand for silver could exceed 3000 tonnes in 2021, while the 5G rollout – which is only just beginning – will be a major driver of demand for years to come.

Goldman Sachs see silver prices rising to $33 an ounce in H2 2021, boosted both investment and industrial demand for the precious metal – and our research suggests similar.

In my opinion, Silver is still definitely the best trade right now and any substantial pullbacks should be viewed as buying opportunities.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Gold Holds Tight Range As Attention Shifts To ECB – What’s Next?

Looking ahead to this week, trader’s attention has now shifted to the European Central Banks monetary policy meeting, scheduled for Thursday.

As one of the “Big 4” central banks, this event is expected to be a major market mover – especially as the ECB is expected to implement significant changes to its monetary policy strategy and forward guidance.

Earlier this month, the ECB raised its inflation target to 2% and also stated that the central bank would accept “a transitory period in which inflation will run moderately above target.” These changes are likely to be incorporated into the bank’s forward guidance.

The meeting should shed more light on whether the ECB’s new strategy is just window-dressing or an actual shift towards a more dovishness monetary policy stance to achieve what the ECB hasn’t achieved for a decade – which is getting inflation back under control.

The EBC meeting takes place one week ahead of the Federal Reserve’s July monetary policy meeting, which is also likely to be dominated by the narrative of surging inflation.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Precious Metals Seek Direction Amid Rising Delta Variant Concerns

Many countries in Asia and Europe are struggling to curb the highly contagious Delta variant of the coronavirus and have been forced into taking lockdown measures. The spread of the Delta variant has prompted concerns that the global economic recovery could be derailed.

Elsewhere, the annual rate of U.S Inflation accelerated from 5.0% to 5.4% in June – the highest on record since 2008. While the core annual rate of inflation rose from 3.8% to 4.5%. Many economist now forecast that Inflation in the U.S will climb to between 6% and 9% by year-end.

Looking ahead to this week, the major market-moving event that traders will be closely watching is the European Central Banks monetary policy meeting.

The meeting should shed more light on whether the ECB’s new strategy is just window-dressing or an actual shift towards a more dovishness monetary policy stance to achieve what the ECB hasn’t achieved for a decade – which is getting inflation back under control.

The EBC meeting takes place one week ahead of the Federal Reserve’s July monetary policy meeting, which is also likely to be dominated by the narrative of surging inflation.

Other key macro events include: U.S. jobless claims data and U.S. manufacturing PMI data.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Can Gold Prices Hold Above $1,800 As Focus Shifts To Fed Minutes?

Attention has now shifted to the FOMC’s June Monetary Policy Meeting Minutes, due for release on Wednesday.

Traders will be closely monitoring whether the hawkish comments made by some of the Fed officials during the last few weeks match up with the notes from the June Meeting Minutes or completely contradict them.

There is the potential for the Fed’s June meeting minutes to surprise the market, similar to the way April minutes did. Right after the April FOMC meeting, Jerome Powell said policy makers “were not talking about talking about tapering”. But the minutes revealed a divided committee, with a number of participants signalling it would be appropriate to begin discussing interest rates hikes and tapering of its quantitative easing program at upcoming meetings if the economy continues to make rapid progress.

Right now, there is a lot we don’t know about the Fed’s thinking around tapering, so any new information will likely open the door for fresh volatility ahead.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

For a look at all of today’s economic events, check out our economic calendar.

Will The FED Meeting Minutes Catch Markets By Surprise Again?

Looking ahead, all eyes this week will be on the release of the Federal Reserve’s June Monetary Policy Meeting Minutes.

Traders will be closely monitoring whether the hawkish comments made by some of the Fed officials during the last few weeks match up with the notes from the June Meeting Minutes or completely contradict them.

There is the potential for the Fed’s June meeting minutes to surprise the market, similar to the way April minutes did. Right after the April FOMC meeting, Jerome Powell said policy makers “were not talking about talking about tapering”. But the minutes revealed a divided committee, with a number of participants signalling it would be appropriate to begin discussing interest rates hikes and tapering of its quantitative easing program at upcoming meetings if the economy continues to make rapid progress.

There’s a lot we don’t know about the Fed’s thinking about tapering, so any new information will likely open the door for fresh volatility ahead.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

Gold Prices Pull Back Ahead of Key U.S Jobs Data – What’s Next?

Looking ahead to this week, the major market-moving event that traders will be closely watching for clues on the precious metals next big move is Friday’s U.S Employment Report. This is not only the most highly anticipated economic report of every month, but it’s also a key measure of economic performance and inflation tracked by the Fed.

There will be a huge focus on Friday’s data, especially as the recent uptick in inflation could cause the Fed to raise rates sooner than expected.

The latest was the PCE Price Index, which climbed 3.4% year-over-year in May. That’s its biggest annual rise since the early 1990s – raising fears that the cost of living is continuing to surge at an alarming pace, while the labour market remains unexpectedly sluggish.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: