Gold prices are currently in wait-and-see mode as traders look to the Fed for clues on the precious metals next big move.

Earlier this month, the Consumer Price Index, which the Fed uses as its preferred measure of Inflation, jumped from 5% to 5.4% in June – to its highest level since 2008. Meanwhile, core CPI rose from 3.8% to 4.5%.

The hot reading now positions, the Federal Reserve’s July meeting as a major focal point for the markets.

There's no doubt that the Fed is in a tough position. On the one hand, higher inflation calls for the tapering of its historic quantitative easing program. However, on the other hand, the potential risks to growth from the highly contagious COVID Delta Variant – does not warrant a change in their monetary policy stance.

The conflicting narratives between higher inflation concerns and worries of slower growth in the second half of the year will make the Fed's job especially difficult this time around.

If one of two 5 letter words – either DELTA or TAPER make their way into the FOMC statement that will inevitably set the stage for how precious metal prices will trade throughout the rest of this quarter.

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

Trading has large potential rewards, but also large potential risk and may not be suitable for all investors. The value of your investments and income may go down as well as up. You should not speculate with capital that you cannot afford to lose. Ensure you fully understand the risks and seek independent advice if necessary.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD: Bears struggle below 1.1700 amid oversold RSI

EUR/USD bears take a breather around fresh monthly low. Euro seesaws around the monthly low near 1.1690 amid a sluggish start to Thursday’s Asian session. The currency major pair struggles to extend the Fed-led fall as RSI conditions turn oversold. 

EUR/USD News

GBP/USD: Bears brace for July low ahead of BOE

GBP/USD bears keep controls around 1.3620 amid the initial Asian session on the Super Thursday, after refreshing the monthly low with 1.3609 due to the Fed tapering before a few hours. The cable pair’s recent fall broke an ascending support line from July, which in turn joins bearish MACD signals to hint at the quote’s further downside.

GBP/USD News

EUR/USD: Bears struggle below 1.1700 amid oversold RSI

EUR/USD bears take a breather around fresh monthly low. Euro seesaws around the monthly low near 1.1690 amid a sluggish start to Thursday’s Asian session. The currency major pair struggles to extend the Fed-led fall as RSI conditions turn oversold. 

EUR/USD News

XRP price bound for another dip before 40% rebound

Ripple price came down 20% since the beginning of this week. With some upside today, bulls stand to face a bull trap that could get quite painful. A better entry point at $0.78 looks to be more promising for bulls.

Read more

Federal Reserve Rate Policy Decision: The taper is coming, “soon”

Fed leaves fed funds rate, bond program unchanged as widely expected. The Fed held the base rate near zero, lowered its growth estimates and predicted higher inflation, but it was Powell’s insistence that a taper is coming that garnered the market attention. 

Read more

Majors

Cryptocurrencies

Signatures