Will U.S Inflation Data Make Or Break Gold’s Explosive Run?

No One Expected the Fed to Be Able to Smother Inflation Swiftly

With the Employment Report now in the rear-view mirror, U.S Consumer Price Inflation data is hotly anticipated to be the next big market-moving event that traders will not want to miss.

After several months of rapid-fire interest rate increases – including four straight 75-basis point hikes – the central bank has barely made a dent.

As a result, we are now witnessing a pivotal shift in market sentiment. Traders are no longer afraid of the Federal Reserve’s aggressive interest rate stance with compelling evidence signalling that policymakers are spinning their wheels and hardly even getting close to bending the curve on inflation.

Just in case you needed any proof of a shift in market sentiment, then look no further than Friday’s U.S jobs report.

The better-than-expected reading should have sent the commodity markets tanking – but in fact it did the complete opposite. Over 27 Commodities ranging from Aluminium, Copper, Palladium, Platinum, Gold, Silver, Lumber, Zinc, Crude Oil to Natural Gas prices skyrocketed to multi-month highs – with many notching up spectacular gains of 10% or higher in a single day alone.

And this is not the first time.

Throughout this year, we have seen a number of Commodities racking up impressive double-digit gains in a single day – not once, not twice, but on multiple occasions – and that’s one of the most exciting hallmarks of the current Commodities Supercycle.

Looking ahead, more big moves could be on the horizon as traders shift their attention to Thursday’s U.S Consumer Price Inflation data. Unsurprisingly, the reading is expected to top forecasts again for another straight month in a row.

On a month-over-month basis, the core measure is projected to rise 0.5%, matching the average pace since October of last year and indicating the Fed has made little progress arresting rampant inflation with its series of super-sized rate hikes.

Gold Price Forecast Video for November 9, 2022

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