Gold prices pulled back on Wednesday as trader’s book end-of-quarter profits ahead of Friday’s key U.S jobs data.
Looking ahead, the major event that traders will be closely monitoring this week for clues on the precious metals next big move is Friday’s U.S Employment Report. This is not only the most highly anticipated economic report of every month, but it’s also a key measure of economic performance and inflation tracked by the Fed.
There will be a huge focus on Friday’s data, especially as the recent uptick in inflation could cause the U.S Federal Reserve to raise rates sooner than expected.
So far this year, the Fed has maintained their stance to allow inflation to run hotter than its traditional 2% goal as it pursues full and inclusive employment.
However, with the Fed’s favourite inflation gauge edging up to 5.3% last month, its biggest annual increase since 1991 – ultimately suggests that the Fed now faces its biggest dilemma ever.
Friday’s U.S jobs report 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.
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