Keep Your Eyes On Gold Prices Heading Into July

The great news is that trend is here to stay and set to continue throughout the third quarter of 2022 with an action-​packed calendar of economic events yet to come.

Key Macro Data and Fundamentals for the Week

Looking ahead, the biggest macro event that traders will not want to miss out on is Federal Reserve Chairman Jerome Powell’s speech at the European Central Bank’s Annual Forum on Wednesday.

As ECB President Christine Lagarde and colleagues meet in the resort of Sintra for their version of the Federal Reserve’s Jackson Hole summit, they face an extremely impossible task – cooling the fastest inflation in four decades without triggering a recession.

This narrative has been top of mind in recent months and will be in the spotlight again on Wednesday as Federal Reserve Chair Jerome Powell delivers remarks alongside counterparts from the Bank of England and European Central Banks.

Earlier this month, in a “belated response” to the fastest rise in inflation seen in over 40-years – the Federal Reserve raised interest rates by 75 basis points – the biggest increase since 1994 with Fed Chairman Jerome Powell signalled yet another jumbo sized hike in July.

As ever, traders will be dissecting Jerome Powell’s every word, looking for hints in this case, that the Fed is wavering on its hawkish bias as recessionary fears rise.

Also on the radar this week will be the closely watched U.S PCE Inflation figures. Just how aggressively the Fed will raise rates next month could ultimately be determined by the central bank’s favourite measure of Inflation – Personal Consumption Expenditures data, scheduled for release on Friday.

The reading is expected to top forecasts again for another straight month in a row. If the print comes in higher than expected, this will give the Fed more ammo to hike interest rates aggressively by 75 basis points. On the flipside, however, if the print comes in weaker than expected, this might give the Fed an option to only hike interest rates by 50 basis points at the upcoming policy meeting in July.

Gold Price Forecast Video for June 29, 2022

Right now, Gold remains a traders’ market packed with endless opportunities to capitalize on the short-term macro-driven volatility.

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