THE 4 MILLION OUNCE BET, page-4279

“Inflation will probably pick up further and the numbers for the next few months may appear abnormally large as base effects from the 2020 lockdowns skew the data,” wrote Fawad Razaqzada, market analyst at ThinkMarkets, referring to distortions in monthly inflation figure that results from abnormally high or low levels in the year-ago period.

“The Fed expects inflation to then settle down after a temporary acceleration. However, the key risk is if their assumption turns out to be wrong, and price pressures remain elevated. In fact, with consumers’ inflation expectations rising, this is could translate to actual rise in price levels,” he said.

Gold futures turned higher Tuesday after data showed U.S. consumer prices in March rose for the fourth month in a row and the pace of inflation hit the highest level in 2½ years.