Big Week Ahead For Commodities With U.S GDP, Inflation And Non-Farm Payrolls Data In Focus – What’s Next?

That comes as no surprise, considering one in two people have now turned to trading to capitalize on one of the greatest wealth transfer opportunities of our lifetime!

BRICS and the New World Order in Global Commodities

You certainly cannot talk about Commodities without mentioning the BRICS – And that’s because “the BRICS expansion” will have a significant impact on who controls the world’s Commodity supply – positioning this global power shift as one of the biggest and most pivotal macro-trading opportunities of this year, if not this century.

Last week, the BRICS, which includes Brazil, Russia, India, China, and South Africa – surprised the markets by inviting Saudi Arabia – the world’s largest Crude Oil producer and Iran, which holds the world’s second-largest Natural Gas reserves – to join the BRICS group of nations.

The BRICS also agreed to admit the United Arab Emirates, Argentina, Egypt and Ethiopia to its ranks – propelling global commodities control from 50% to 80% in what is rapidly becoming known as the dawn of “A New World Order”.

The inclusion of these new countries, especially Saudi Arabia, the UAE and Iran doesn’t just increase the size of BRICS, but also their overall supremacy in the global Commodities market.

As it stands, the current five members account for approximately 52% of global Commodities supply across the metals, energies and agriculture. The new composition, including Saudi Arabia, the UAE and Iran will almost double the BRICS market share – giving them control of nearly 80% of global Commodities output.

Global Power Shift, Inflation Trends, and Central Bank Actions

And that in itself signals a massive inflationary trend, which should not be underestimated.

Whichever way you look at it, one thing is clear. The timing of this “global power shift” comes at a very pivotal moment as the world’s major central banks near the end of their most aggressive rate-hiking campaign in decades.

If history has taught us anything, then the one thing that we do know for certain is – there’s a strong correlation between Commodities and Inflation. When Commodity prices accelerate, so does Inflation.

As the world faces the real possibility of a “second wave” of inflation – the big question now is will the Federal Reserve skip, pause or hike interest rates again in September?

The answer to that question may come from a highly anticipated array of key U.S economic releases, due out this week including; the August Non-Farm Payrolls Report, Second Quarter GDP Figures, ISM Manufacturing PMI – And of course the Fed’s preferred measure of inflation – PCE Inflation Data, which always has the potential to move the markets significantly.

Commodity Price Forecast

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: