Commodities Post Their Biggest Monthly Gain In 2021 As Inflation Heats Up – What’s Next?

Federal Reserve officials have remained adamant that inflation will run hotter than its traditional 2% goal for a longer period than estimated as the global economy reopens, but should prove temporary. However traders are unconvinced and are questioning whether the Fed has unleashed a beast that they can no longer control.

On Friday, The PCE Price Index, which the Fed uses for its preferred measure of Inflation, jumped 3.6% from a year earlier. That’s its biggest annual rise since 2008.

Following the data, Gold prices vaulted back to above $1900 an ounce – notching up a fourth consecutive week of gains. Gold has now crossed the finishing line for May with an 8% gain, which is its biggest monthly gain since July 2020.

Meanwhile, Silver prices have tallied up an impressive gain of over 80% in the last year.

Silver prices are currently trading above $27 an ounce. That’s a whopping gain of 86% from a year ago, when the spot price was around $14.50 an ounce.

Elsewhere this month, many other commodities ranging from Copper, Palladium, Iron Ore to Lumber prices have surged past all-time record highs – And this could just be the beginning!

Looking ahead to this week, the key macro events that traders will be watching closely for clues on the markets next big move include; ISM Manufacturing PMI data, ADP Employment Change and Jobless Claims as well as the biggest event of the week – Non-Farm Payrolls data on Friday.

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

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