|

Silver jumps as global inflation hits a decade high – What's next for prices? [Video]

Prices for a long list of metals have soared this month including Aluminium, Copper, Iron Ore, and Uranium. Now Silver Prices have joined them, rallying sharply over the past week as global inflation continues to surge.

Last week, the U.S Bureau of Labor Statistics released the inflationary numbers for September, which showed U.S Consumer Price Inflation accelerated by a whopping 5.4% from a year ago – its largest increase since July 2008.

Just like the United States, every economy around the world right now is experiencing a rapid surge in inflation.

Consumer Price Inflation in Canada rose at its fastest rate in 18 years in September, to hit 4.4%, up from 4.1% in August – its highest level since February 2003.

Elsewhere in the UK inflation hit 4% last month – the largest jump since 1997 and is forecast to exceed 5% by the end of the year. Meanwhile, Eurozone inflation hit a 13-year high of 3.4%.

According to many leading economists, the actual global inflation figures are likely much higher than being reported, because of the obvious understatement in housing and food costs buried in those Consumer Price Index stats.

Signs of inflation are growing more obvious day by day, from soaring shipping costs, rising energy bills, food, and general commodity prices to shortages of products and labor. That trend shows no sign of slowing down anytime soon.

So far this year, central bank officials have dismissed surging inflation as being only ‘temporary’. However, traders are unconvinced and believe global policymakers have lost control over inflation.

Higher inflation, ultimately erodes consumers’ purchasing power, making assets such as precious metals an attractive haven, as we are currently seeing play out.

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

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

More from Phil Carr
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD struggles for direction amid USD gains

EUR/USD is trimming part of its earlier gains, coming under some mild downside pressure near 1.1730 as the US Dollar edges higher. Markets are still digesting the Fed’s latest rate decision, while also looking ahead to more commentary from Fed officials in the sessions ahead.

GBP/USD drops to daily lows near 1.3360

Disappointing UK data weighed on the Sterling towards the end of the week, triggering a pullback in GBP/USD to fresh daily lows near 1.3360. Looking ahead, the next key event across the Channel is the BoE meeting on December 18.

Gold losses momentum, challenges $4,300

Gold now gives away some gains and disputes the key $4,300 zone per troy ounce following earlier multi-week highs. The move is being driven by expectations that the Fed will deliver further rate cuts next year, with the yellow metal climbing despite a firmer Greenback and rising US Treasury yields across the board.

Litecoin Price Forecast: LTC struggles to extend gains, bullish bets at risk

Litecoin (LTC) price steadies above $80 at press time on Friday, following a reversal from the $87 resistance level on Wednesday. Derivatives data suggests a bullish positional buildup while the LTC futures Open Interest declines, flashing a long squeeze risk.

Big week ends with big doubts

The S&P 500 continued to push higher yesterday as the US 2-year yield wavered around the 3.50% mark following a Federal Reserve (Fed) rate cut earlier this week that was ultimately perceived as not that hawkish after all. The cut is especially boosting the non-tech pockets of the market.

Aave Price Forecast: AAVE primed for breakout as bullish signals strengthen

Aave (AAVE) price is trading above $204 at the time of writing on Friday and approaching the upper boundary of its descending parallel channel; a breakout from this structure would favor the bulls.