Will US inflation data drive gold prices higher or lower? [Video]

Gold prices held steady on Wednesday as traders turned to a busy economic calendar of events ahead in the form of Inflation Data, Minutes from the Federal Reserve’s latest Monetary Policy Meeting and the first wave of U.S Corporate Earnings.

The concerns hanging over markets in recent weeks have hinged on inflation, the future of central bank stimulus, and how supply-chain pressures will impact company profits. Wednesday will see updates on all three.

There will be a huge focus on U.S Consumer Price data, especially as the recent uptick in inflation could cause the U.S Federal Reserve to raise rates sooner than expected.

Elsewhere, while minutes from the Federal Reserve’s September meeting are likely to signal an imminent scaling back of asset purchases – the recent string of jobs data misses may complicate the timing of when tapering could actually start.

All of this, ultimately suggests that the Fed now faces its biggest dilemma ever.

Wednesday’s U.S Consumer Price Inflation data, will either make the Fed's decision on rates much easier or much more difficult, which opens the door to new and exciting opportunities ahead.

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