Gold has sailed into the new week full steam ahead, with prices trading above £1,626 ($2,019) yesterday (Tuesday). Picking up right where they left off last week, the gold bulls have gained ground thanks to a weaker U.S. dollar ahead of new inflation data.
The new inflation reading, which will take place later today (Wednesday), is keenly awaited by analysts, as the reading will determine what the Federal Reserve does next. It is already coming under pressure to chance course away from further rate hikes as a result of the banking crisis. It’s widely expected that a .25 increase will be announced – but today’s CPI data will give some indication as to how long that stance is likely to continue.
TD Securities head of commodity strategy, Bart Melek said the new figures could shape how the rest of the year goes. “At this stage of the game, the market isn’t particularly fussed on whether we get another 25 basis points [in May]. The market is looking at the pivot and signalling lower rates as we move deeper into the second half of 2023.”
With gold prices already trading hot, don’t wait for them to increase further. Buy now.
