Phil Carr
The Gold & Silver Club
Gold prices hovered near three-month highs on Wednesday as traders await a fresh fundamental spark to ignite the precious metals next big move.
As the world comes out of lockdown and demand for goods and services rises – traders have now shifted their attention to inflation figures, due for release on Wednesday.
All eyes are now on Consumer Inflation data for April, which is expected to show the biggest year-over-year gain in nearly a decade.
Traders expect the April CPI figures to show a sizzling 3.6% jump on a year-over-year basis. That compares to 2.6% the month earlier.
The Producer Price Index is reported on Thursday and that should confirm a trend of higher prices that is showing up in corporate earnings releases. Another important data point, will be U.S Retail Sales data released Friday.
So far this year, the Fed has maintained their stance to allow inflation to run hotter than its traditional 2% goal, stating that any price acceleration will be temporary. However, if the inflation appears hot when the figures are reported – this could once again ignite the debate about whether the Fed will be forced into winding back its ultra-loose monetary policy sooner than it would like.
Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:
Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.
Recommended Content
Editors’ Picks
AUD/USD: Gains look capped near 0.6800
AUD/USD lost ground for the third session in a row and revisited the 0.6720-0.6715 band following the generalized bearish performance of commodities and ahead of the key release of the Australian labour market report.
EUR/USD keeps the bid tone in place ahead of ECB
EUR/USD added to Tuesday’s advance and rose to new highs around 1.0950 in response to extra weakness in the Greenback and rising expectations prior to the ECB gathering on Thursday.
Gold retreats from record highs, retains the bullish stance
Gold trades flat on the day below $2,470 after touching a new record high above $2,480 in the Asian session on Wednesday. The modest recovery seen in the US Treasury bond yields causes XAU/USD to consolidate its gains.
Ripple extends gains as XRP traders await end of SEC vs. Ripple lawsuit
Ripple (XRP), XRP Ledger’s native token, extended gains by nearly 7% on Wednesday. The sixth largest asset by market capitalization rallied for the tenth consecutive day and erased all losses from the last 99 days.
Australian Unemployment Rate seen steady at 4% in June
With sentiment dominating financial markets, the Australian Bureau of Statistics will release the monthly employment report on Thursday at 1:30 GMT. The country is expected to have added 20K new positions in June, while the Unemployment Rate is foreseen to remain steady at 4%.