Does the price of gold have a bottom, or is it just a brief easing of selling pressure

But there was no significant upward movement, no greater high than the day before, and no unmistakable sign that the current selling pressure had subsided. Instead, it appears that market investors are waiting to see what the upcoming two important data on inflation and employment will reveal.

The U.S. Labor Department will release the nonfarm payroll jobs data for June tomorrow, which will be the first significant report. The most recent inflationary figures will be released the next week when the BEA releases the CPI (Consumer Price Index) for the previous month. The confidence that the Federal Reserve will increase interest rates again this month is being anticipated by market players.

The current discussion, however, centers on whether the Fed would maintain its strong approach by simply hiking rates by 50 basis points, as opposed to implementing another 75-basis point rate hike, as it did in June. The Federal Reserve will continue to batten down the hatches as they have since March, regardless of what the employment and inflation reports show.

There is no disagreement, according to the FedWatch tool from the CME. This is due to the FedWatch tool's forecast that there is a 93.9 percent likelihood that the Fed would maintain its strong approach to combating inflation by implementing back-to-back rate rises of 34 percent.

The dual goals of achieving maximum employment and keeping inflation within a target range of 2 percent are no longer the Federal Reserve's primary concerns. Recent Federal Reserve FOMC remarks and minutes amply demonstrate the central bank's laser-like concentration on containing inflation, with full awareness that the escalating rate rises will cause an economic slowdown and a decline in the labor force.

Analysts and market players have been worried about this approach because they believe it would cause economic instability and a recession. According to the most recent consensus, employment growth is still strong but shrinking. This data is expected to show that there were about 272,000 new jobs added last month and that the unemployment rate remained constant at 3.6 percent.

The BEA will present the most recent inflation figures on Wednesday, July 13. We may anticipate that inflationary pressures will continue to run high with a potential spike when compared to the preceding month, if the most recent inflationary figures from Europe are any indicator of what the CPI report will show next week.

According to the most current economic data, the US economy has gotten worse, and consumer confidence has plummeted. However, it is also obvious that the Federal Reserve will continue to hike rates this month and in September in order to pursue its goal of bringing inflation down from its present high levels and 40-year highs.

It is most definitely a reasonable assumption that the current selling pressure in gold has not subsided given the extremely high likelihood that the Federal Reserve will implement a second straight rate rise of 75 basis points at the end of this month.