Comex Gold

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: