1970s-Style Inflation Is Coming, But What Does That Mean For Gold?

Commodity Markets Fundamental Analysis

Data released this week, showed Consumer Price Inflation in the U.S surged to a new four-decade high of 8.5% in March – its largest annual increase since December 1981 and a significant jump from the 7.9% Inflation rate reported in February.

According to economists; if Inflation continues to accelerate at the current pace, then we’re only months away from a return to double-digit inflation on the same level last seen in the 1970s.

Looking back throughout the whole of 2021, Fed Chair Jerome Powell played down the biggest year-on-year rise in Inflation seen in more than 40-years – characterizing the record spike as “transitory”. This inevitability will always be remembered as the worst inflation call in the history of the Federal Reserve.

Fast forward to today and the Fed now it has to either move more aggressively with hiking interest rates, which could push the economy into a recession or allow Inflation to run its course.

Regardless of the outcome, both scenarios, whether that’s persistent Inflation or a recession, ultimately present an extremely bullish backdrop for precious metal prices.

That leads me onto Gold, which right now is hovering around the $1,970 level.

Interestingly, that’s the same level Gold was at two years ago in April 2020 – just before prices skyrocketed to new all-time highs.

Gold Price Forecast Video for 13.04.22

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:

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