This year, inflation has surged at its fastest pace in 40 years and is expected to remain elevated for years to come.

That view was recently echoed by Federal Reserve Chair Jerome Powell, stating that “inflationary pressure is likely to last longer than previously expected” and the world should prepare themselves for several years of higher inflation.

Data released earlier this month, showed U.S Consumer Price Inflation accelerated by a whopping 6.8% from a year ago – its largest annual increase since 1982 and a significant jump from the 6.2% Inflation rate reported in October.

According to economists, global inflation figures could reach double digits in the months ahead and risk a repeat of the Great Inflation of the 1970s.

Looking ahead, traders have now shifted their attention to the Federal Reserve’s favourite measure of inflation – Personal Consumption Expenditures (PCE) data, due for release on Thursday.

The reading is expected to top forecasts for an 11 straight month in a row, with a gain of nearly 6%, which would be the largest year-over-year jump in PCE inflation since the early 1980s.

Gold prices are currently trading in a tight range, which ultimately indicates a big move is on the horizon. The only question now, is which way.