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: