By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: Gold at Risk of Volatility Following PCE Inflation Data
Share
Notification Show More
Latest News
L’Oréal Paris Welcomes Yasmine Sabri as New Brand Ambassador for the Middle East
Lifestyle
Roland Garros 2025: A New Era of Viewing, A Tribute to Legends, and Moments to Remember
Sports World
Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide
Crypto
Bitget Protection Fund Maintains Strength with $561 Million Average Value in April 2025
Business Crypto
Moscow Metro Marks 90 Years with Technological Advancements and Heritage Events
Lifestyle World
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > Gold at Risk of Volatility Following PCE Inflation Data
Forex

Gold at Risk of Volatility Following PCE Inflation Data

News Room
Last updated: 2024/06/28 at 12:51 PM
News Room
Share
4 Min Read
SHARE

Gold (XAU/USD) is currently experiencing marginal declines, trading in the $2,320s on Friday as investors await the release of the US Personal Consumption Expenditures (PCE) – Price Index for May. The PCE serves as the Federal Reserve’s preferred inflation indicator, and as the agency is responsible for setting interest rates, the outcome of the data could impact their decisions. Given that Gold is a non-yielding asset, fluctuations in interest rates can influence its value. Higher rates tend to make Gold less attractive to investors, whereas lower rates are generally beneficial.

The price of Gold is likely to see increased volatility following the release of the US PCE data, scheduled for 12:30 GMT on Friday. Expectations are for PCE inflation to drop to 2.6% year-over-year in May from 2.7% in April. A lower reading would support the yellow metal, as it could lead to a reduction in interest rates, which in turn benefits Gold. Core PCE is also expected to cool on both a year-over-year and month-over-month basis. This potential decrease in inflation could have significant implications for Gold’s value and overall market dynamics.

Various factors contribute to the outlook for Gold prices, including commentary from Federal Reserve officials. Recent statements from Atlanta Fed President Raphael Bostic and Fed Board of Governors member Michelle Bowman have offered differing perspectives on the possibility of rate cuts. While Bostic indicated potential future rate cuts, Bowman expressed caution on the matter. Market-based indicators are also suggesting a likelihood of rate cuts, adding to the uncertainty surrounding Gold’s future performance.

Despite short-term fluctuations, Gold’s long-term prospects remain positive. Geopolitical uncertainties, a strong demand for safe-haven assets, and evolving global trade dynamics contribute to the metal’s appeal. Gold’s complex relationship with the US Dollar also plays a significant role in its value. The BRICS trade confederation, among others, is increasingly turning to Gold as an alternative to the US Dollar for global transactions, further boosting its status as a reliable store of value.

In terms of technical analysis, Gold has broken above a key trendline, further challenging the bearish Head and Shoulders pattern that was previously developing. While the validity of the pattern is now in question, the overall trend remains in an uptrend. The potential for further price movements in either direction is supported by technical indicators, with specific price targets identified based on trendline breaches.

Overall, Gold remains an attractive asset class for investors looking to diversify their portfolios and hedge against market uncertainties. The upcoming US PCE data release will likely provide further clarity on the metal’s short-term performance, while broader geopolitical and economic factors continue to influence its long-term trajectory. As market conditions evolve and global trends shift, Gold’s role as a safe haven asset is expected to remain strong, supporting its value and appeal for investors worldwide.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room June 28, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article The Katara Space Science program comes to a close
Next Article UAE: Company fined Dh20,000 for illegal waste dumping
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

L’Oréal Paris Welcomes Yasmine Sabri as New Brand Ambassador for the Middle East
Lifestyle May 23, 2025
Roland Garros 2025: A New Era of Viewing, A Tribute to Legends, and Moments to Remember
Sports World May 22, 2025
Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide
Crypto May 22, 2025
Bitget Protection Fund Maintains Strength with $561 Million Average Value in April 2025
Business Crypto May 20, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?