Big Week Ahead For Commodities With FOMC, Inflation And U.S Jobs Data In Focus – What’s Next?

Fundamental Analysis for Gold

April is certainly shaping up to be an incredibly profitable month with a monetary policy failure, re-accelerating inflation and recession risk now emerging as the three biggest macro themes driving the Commodity markets.

This week is all about the macroeconomics with trader’s attention firmly focused on a string of hotly anticipated data releases including the FOMC Monetary Policy Meeting Minutes, U.S Inflation and Non-Farm Payrolls Data – as well as the eagerly awaited OPEC and IEA Oil Market Reports.

Earlier this month, ISM manufacturing and service gauges both fell more than expected, underscoring the potential economic damage from the collapse of several prominent banks from Silicon Valley Bank to Signature Bank as well as the disorderly implosion of Credit Suisse.

Meanwhile on the inflationary front, growing evidence shows price pressures are re-accelerating and a “second wave” of inflation could be on the way – especially after OPEC+’s surprise decision to slash Oil production by more than 1 million barrels per day.

Key Oil Market Reports out this week from OPEC, the International Energy Agency and U.S Energy Information Administration will shed further light on the supply picture, with further inventory drawdowns likely to signal higher prices. In fact, over the past week, a number of leading Wall Street banks have already revised their forecasts with bullish calls – indicating that the production cuts will lead to Oil prices pushing back above $100 a barrel, if not higher.

Elsewhere, with economists predict a deep recession is on the way – Minutes from the Fed’s March Monetary Policy Meeting, U.S Inflation and Non-Farm Payrolls Data could provide clues on the precious metal markets next big move.

Gold and Silver Soar: A Perfect Storm for Unprecedented Gains in Commodity Markets

Last week, Gold prices came in striking distance of hitting all-time record highs reached in August 2020, while Silver prices racing above $25 an ounce.

Gold has been on an unstoppable run, skyrocketing from the $1,800 level at the beginning of March to above $2,000 an ounce last week – notching up an impressive gain of over 12%, in the past month alone.

Gold prices have now risen for a second straight quarter in a row – up over 28% from the November lows of $1,600 an ounce – scoring their biggest back-to-back quarterly gain ever in history – the rally might not stop there!

We’re just over a quarter way into 2023 and it has already been a massive year Commodities – but this could just be the beginning of the markets’ biggest year since 2008.

Whichever way you look at it, one thing is clear. The current macroeconomic backdrop is fuelling a “perfect storm” for Commodities and that trend shows no signs of slowing down anytime soon!

Commodity Price Forecast for the Week

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