All Eyes On U.S Inflation Data For Clues On Gold’s Next Big Move – What’s Next?

That view was echoed by Federal Reserve Chair Jerome Powell on Tuesday, during his testimony before the U.S. Senate Banking Committee.

“This year, we see an economy where the labor market is recovering rapidly and inflation is well above 2%. This tells us is that the economy no longer needs or wants the highly accommodative policies we had in place to deal with the pandemic,” said Powell.

He also warned that “a recession is possible if the Central Bank tightens too much too quickly”.

Those comments by the Fed chief sent Gold prices rallying to a one-week high, as traders scrambled for safe havens.

Looking ahead, traders have now shifted their attention to Wednesday’s Consumer Price Inflation reading for clues on the markets next big move. The reading is expected to show a record setting gain of 7%, which would be the largest year-over-year jump in consumer inflation since the early 1980s.

Right now, Gold prices are trading sideways in a tight range, which ultimately indicates a big move is on the horizon. The only question now, is which way.