Inflation measurement hints at continued poor outcomes

Following almost 2 years of inflation based metrics filling our screens on a daily basis - Today, the FED is looking yet again at measured CPI, or the consumer price index in an attempt to better predict inflation. Later today we should have more information at hand on whether the US really has inflation under control or not.

With the FED hinting at interest rate reductions around mid-year, today’ CPI result could well determine if interest rate reductions are happening this year at all. With a high CPI print, rates will definitely be sticking around for longer.

In great news for Gold, $US pricing has now been comfortably above $US2000 for almost 8 weeks. As it continues to form a gentle downward wedge, many opportunistic investors are awaiting another upward push for the precious metal in the coming weeks.

For the first time in over 12 months, our technical forecasting is showing 11/12 indicators recommending a strong buy (monthly position).

Enjoy today’s forecast and next week we’ll talk about today’s CPI print from the US.

Gold daily chart, with 200MDA

Silver daily chart, with 200MDA

US500, with 200MDA

ASX200, with 200MDA

Gold Futures Technical Analysis

Gold Futures monthly analysis continues to recommend a STRONG BUY with Weekly analysis a STRONG BUY signal.

Technical indicators - Monthly Projections

 Summary for Monthly Forecast: Strong Buy

*Not financial advice, please do your own research prior to any investment decisions you make.