Anticipation Mounts as Inflation Data Looms: Market Direction Remains Uncertain

12 July, 2023

As at 10am, AEST.

Gold Spot Price $AU2892

Silver Spot Price $AU34.71

Platinum Spot Price $AU1399

As the US Federal Reserve (FED) appears to have made significant strides in addressing inflation concerns, market participants eagerly await the release of the latest inflation data, which could have a substantial impact on market movements. Renowned strategist Tom Lee of Fundstrat predicts a significant 2.3% gain, equivalent to 100 points, for the S&P 500 index in the upcoming week.

Lee's optimistic outlook is rooted in the belief that with inflation seemingly under control, the FED is unlikely to continue raising interest rates aggressively.

In fact, some economists even speculate the possibility of rate easing as early as mid-2024. This potential signal of returning to "business as usual" has sparked enthusiasm among investors, prompting them to consider increasing their exposure to the stock market.

In parallel, gold and silver experienced a modest rally this week, mirroring the upward momentum of their 200-day moving averages (200MDA). The performance of these precious metals will continue to be closely watched by investors seeking potential safe havens and diversification amid the evolving market landscape.

As the impending release of inflation data approaches, market participants remain cautious yet optimistic about the potential outcomes and the subsequent impact on investment strategies.

Gold daily, with 200MDA

Silver daily, with 200MDA