New data set to be released later today (Wednesday) could confirm that inflation has hit levels not seen since the financial crash of 2008, potentially forcing the Federal Reserve to put off its planned policy changes which were expected to be initiated next month.
Ahead of the key U.S. Bureau of Labor Statistics release, economists point out that the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index remain at elevated levels. The current level of inflation as per data published 14 September is 5.3% – an alarming level which matches the highs seen in the aftermath of the 2008 crash.
These figures are significant for gold, which in addition to gaining ground as a result of the economic outlook, is also benefiting from its role as a portfolio safe haven and hedge against inflationary pressures.