The major macro event that traders will be closely watching this week is Friday’s U.S Employment Report, which is the most highly anticipated economic report of every month. It’s also a gauge of economic performance and a key measure of inflation tracked by the Federal Reserve.
So far this year, the Fed has maintained their stance to allow inflation to run hotter than its traditional 2% goal as it pursues full and inclusive employment.
The major risk of this approach is if the Fed gets too fixated on concrete evidence of a solid labour market recovery, it could end up behind the inflation curve.
If you’re wondering just how high inflation could get, you only have to take a look at what is happening across the rest of the commodity markets.
Copper, Palladium, Iron Ore and Lumber prices have skyrocketed to all-time record highs in recent weeks. In total 23 Commodities ranging from the metals, energies to soft commodities have tallied up double to triple digit gains within the in the past year.
All of this suggests one thing – it’s only a matter of time before Gold eventually catches up with the rest of the commodities complex.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: