In this video tutorial:

1. My observation on these cycles
2. This super charge in the Gold since 2015, how that affect the commodities subsequently
3. How about inflation? Will it settle at 3%?

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Some reference for traders:

Chicago SRW Wheat Futures & Options – Its Minimum Fluctuation
1/4 of one cent (0.0025) per bushel = $12.50 / ZW

Gold Futures & Options – Its Minimum Fluctuation
0.10 per troy ounce = $10.00 / GC

Soybean Oil Futures & Options – Its Minimum Fluctuation
1/100 of one cent (0.0001) per pound = $6.00 / ZL

Disclaimer:

The presentation made in this session is solely for educational purposes. It is not a recommendation. Investors acting on these views and strategies, you do so at your own risks. These views and strategies do not represent those of the organizer or any of its affiliates.

Please read the above and following link before proceeding:
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Will Inflation Settle at 3% and Lower? Exploring the Inflation Cycle with Gold & Commodities

Inflation has long been a concern for governments, businesses, and consumers alike. A steady rise in prices can erode purchasing power, destabilize economies, and hinder growth. While various factors contribute to inflation, such as government policies, supply and demand dynamics, and market sentiment, one asset class often closely associated with inflation is gold and other commodities.

Historically, gold has been seen as a hedge against inflation. As the value of fiat currencies depreciates due to inflation, gold has typically retained its purchasing power. Investors often turn to gold as a safe haven during inflationary periods, as it acts as a store of value and can preserve wealth.

Commodities, on the other hand, are real, tangible assets that are heavily influenced by supply and demand dynamics. Commodities such as oil, gas, agricultural products, and metals experience price fluctuations due to factors like weather conditions, technological advancements, geopolitical tensions, and changes in consumer demand. Inflation can impact commodities in several ways. Firstly, as the cost of production increases due to rising prices of raw materials and energy, the cost of goods that rely on these inputs also goes up. Secondly, during inflationary periods, investors often flock to commodities as an inflation hedge, driving up their prices.

The inflation cycle typically starts with an increase in money supply. When central banks and governments inject more money into the economy, it boosts consumer spending power and stimulates demand. As demand increases, businesses respond by producing more goods and services, thus driving up prices.

However, central banks have the power to influence inflation rates. They implement monetary policies to manage inflationary pressures and maintain price stability. One of the main tools at their disposal is interest rates. By raising or lowering interest rates, central banks can control borrowing costs, influence spending behavior, and impact the money supply. When inflation starts to rise above the desired target, central banks often respond by raising interest rates to cool down the economy and curb inflation. Conversely, during periods of low inflation or deflation, central banks may lower interest rates to stimulate borrowing and spending.

In recent years, central banks in many developed economies have struggled to achieve their inflation targets of around 2%. Factors such as globalization, technological advancements, and demographic shifts have contributed to low inflation rates. Furthermore, the COVID-19 pandemic and subsequent economic uncertainties have further dampened inflationary pressures.

However, as economies recover from the pandemic-induced recession, there are concerns that pent-up demand, supply chain disruptions, and vast stimulus measures may potentially lead to higher inflation. Some experts argue that the unprecedented fiscal and monetary policies implemented to combat the pandemic’s impact could ultimately result in a surge in prices.

Nonetheless, the question remains: will inflation settle at 3% and lower, as many central banks strive to achieve? It is difficult to predict with certainty, as inflation is influenced by a multitude of complex factors. While past trends and historical relationships can provide insights, they do not guarantee future outcomes.

Regarding gold and commodities, their performance during inflationary periods can be unpredictable. While gold has historically been associated with inflation hedging, its price is also influenced by other factors such as investor sentiment, interest rates, and overall market conditions. Additionally, commodities’ performance during inflationary periods can vary depending on numerous factors like the balance of supply and demand, government policies, and geopolitical events.

In conclusion, predicting whether inflation will settle at 3% and lower is challenging due to the numerous factors that influence it. Gold and commodities can play a role as potential inflation hedges, but their performance is not guaranteed during inflationary periods. Central banks will continue to monitor inflation rates closely and adjust monetary policies accordingly to maintain price stability and promote economic growth. Ultimately, only time will tell how inflation and its relationship with gold and commodities will unfold in the years to come.