Will The Fed Put The Brakes On Gold’s Rally?

Gold can take Support near $1843, and if it fall further below $1828, it would lead to change in Trend to downwards:

This month, precious metals have been on a tear with Gold rising more than 6% and Silver soaring over 8%. Since bottoming out at the end of March, Gold prices have climbed nearly $200 to hit a four high, while Silver is up more than $5

Trader’s attention has now shifted to Minutes from the Federal Reserve’s most recent meeting on monetary policy, due for release on Wednesday. The minutes are expected to provide further clarity into the central bank’s view on the economic recovery, as well as surging inflation.

A lot has changed since the Fed’s last meeting with U.S Inflation in April accelerated at its fastest pace in more than 12 years – jumping a sizzling 4.2% from a year earlier.

The increase in the annual headline CPI rate was the fastest since September 2008, while the monthly gain in core inflation was the largest since 1981.

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 recent streak of data from U.S employment, retail sales to housing figures all significantly missing expectations – the is narrative is rapidly shifting from inflation to stagflation – a period of high inflation accompanied by a slowdown in economic growth.

Gold can take Support near $1843, and if it fall further below $1828, it would lead to change in Trend to downwards.

Report by Phil Carr.