Gold prices surged above the key $1,800 level after U.S inflation data missed expectations, easing concerns that the Federal Reserve will be forced to pare back its monthly asset purchases anytime soon.

Data released on Tuesday showed Consumer Price Inflation increased 0.3 per cent from July, the smallest advance since February.

The CPI reading follows on from this month’s Non-Farm Payrolls report, which also missed expectations – showing a reading of 235,000 new hires last month, the smallest gain in seven months.

Both these closely watched reports have now thrown huge uncertainty over the Federal Reserve’s taper timeline, which creates a supportive backdrop for metal prices in the near-term.

Elsewhere in the metals complex, Uranium prices continued their upward momentum skyrocketing to fresh multi-year highs.

Uranium futures rallied above $44 a pound on Tuesday to hit a nine-year high. Uranium prices are currently up over 216% within the in the past year and are setting new record highs almost daily.

Looking ahead, the major event that traders will be closely monitoring for clues on the markets next big move will be the upcoming FOMC Policy Meeting.

Traders will be watching to see if Fed officials reveal any fresh insights into the anticipated wind down of the central bank’s massive quantitative program – especially in light of recent weaker-than-expected economic data.

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

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