Oversold Inflation Rates is a signal to buy Commodities

When the U.S. Inflation Rate is Oversold whilst also trading below its 50 month moving average, then it’s time to ponder accumulating commodities.

I’ve circled the 8 notable moments this has happened over the past 40 years.

We may be approaching another such moment.

My recent writings muses that U.S. inflation may have one more dive to the 3.5% region in the coming monthly reports and this should be enough for the stars to align.

The chart below plots the U.S. Inflation Rate (blue) against the S&P Goldman Sachs Commodity Index “SPGSCI” (orange).

July 4, 2023

by Rob Zdravevski

Karri Asset Advisors

rob@karriasset.com.au