Better than expected inflation data eases fears, for the moment

Late Wednesday the FED released better than expected CPI data that continues to show inflation is well and truly under control.
 
As Trump takes office on the 20th January, he could well be inheriting an economy primed for growth, or one destined for stagnation during his term.
 
With China already underway with some of its largest-ever economic stimulus (1.3 Trillion USD), Modern Monetary Theory (MMT) looks to be continuing onwards throughout the world. With each inflationary cycle requiring an even greater stimulus to recover, the level of debt the Western World may need to stimulate GDP or growth, in general, could be too much to handle. 
 
Though while the FED, the RBA and the IMF (International Monetary Fund) now have the arduous task of stimulating growth, consumers and mortgage holders may enjoy a period of reduced rates and access to cheaper debt into the next cycle.
 
So as we move out of monetary tightening and into monetary easing, we again look at Gold. Historically, as the dust settles between monetary cycles Gold consolidates and finds its new average. But with cycles becoming potentially shorter (due to events like Covid-19 stimulus), Gold may well not have time to rest. With continued stimulus, we ultimately end up inflating the economy. Gold will continue to play its part to hedge against this inflationary cycle.
 
Enjoy today’s forecasts.

 
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 DYOR prior to any investment decisions you make.