What’s Next For Gold Prices As Attention Shifts To Key Inflation Data?

The precious metal has been on an unstoppable run this month, rallying from the $1,800 level at the beginning of February, to a fresh yearly high of $1,912 an ounce this week.

Traders’ attention has now shifted to Friday’s key Inflation reading for clues on Gold’s next big move.

Data released earlier this month, showed U.S Consumer Price Inflation accelerated by a whopping 7.5% from a year ago – its largest annual increase since February 1982 and a significant jump from the 7% Inflation rate reported in December.

After having more than doubled the size of its balance sheet to over $9 trillion since the start of the pandemic – expectations are running high that the Fed will announce its first interest-rate hike since 2018, as early as March in a desperate push to tame red-hot inflation.

Just how aggressively the Fed will raise rates could ultimately be determined by the central bank’s favourite measure of inflation – Personal Consumption Expenditures (PCE) data.

The reading is expected to top forecasts again for yet another straight month in a row, with a gain of nearly 6%, which would be the largest year-over-year jump in PCE inflation since the early 1980s.

Right now, Gold prices are trading sideways in a tight range, which ultimately indicates a big move is on the horizon. The only question now, is which way.

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