What’s Next For Gold Prices As Inflation Comes In Hotter Than Expected

Phil Carr
Published: Feb 14, 2024, 18:58 UTC

According to Wall Street's most powerful institutions, we have now entered a new era, known as “The Golden Age of Trading” and macro-opportunities will dominate everything over the next decade!

Gold bullion, FX Empire

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Right now, these big macro-driven moves that we’re currently seeing are presenting savvy traders with a magnitude of back-to-back money-making opportunities, almost on a daily basis.

You certainly cannot talk about macro-opportunities without mentioning the Federal Reserve – And that’s because the timing of the Fed’s first rate cut is whipping up a lucrative money-making storm, that no trader wants to miss out on.

Gold Prices Dip Below $2,000 as Rate Cut Expectations Wane

After an explosive start to the month, Gold prices dipped below the key $2,000 an ounce level on Tuesday after traders scaled back bets that the Federal Reserve will begin cutting interest rates as soon as March.

Gold prices pulled backed after new government figures showed U.S inflation come in hotter-than-expected in January.

Following Tuesday’s data release, the likelihood of a rate cut in May fell from 50% cent to 30%, while the chances of a cut in March were almost fully eliminated.

In December, Wall Street priced in around six rate cuts for 2024 after Fed Chair Jerome Powell signalled that officials will begin winding down rates from a 22-year high. That helped spur a widespread rally that saw everything from the metals to agricultural commodities climb to all-time record highs.

Traders Await Macro Data and Fed Speeches for Gold’s Next Move

Looking ahead, the major market-moving events that traders will be watching closely for clues on Gold’s next big move will be U.S Retail Sales Data, Producer Price Inflation figures.

Regardless of whether the data meets, beats, or misses expectations – the outcome is guaranteed to move the markets significantly – bringing with it massive opportunities to capitalize on!

Elsewhere, all eyes will be on a host of speeches from Federal Reserve officials, scheduled throughout the remainder of this week.

As always, traders will be scrutinizing every word from every Fed official for fresh clues into the central banks future monetary policy plans and most importantly, confirmation of when the first rate cut will come.

Gold Price Forecast

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

About the Author

Phil Carrcontributor

Phil Carr is co-founder and the Head of Trading at The Gold & Silver Club, an international Commodities Trading, Research and Data-Intelligence firm.

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