(Kitco News) - Although off its highs, the gold market is still holding significant gains for the month even after data pointed to muted inflation pressures in July.
Friday, the Department of Commerce said that its Core Personal Consumption Expenditures (PCE) Index, increased in last month 0.2%, missing expectations. Economists were forecasting a 0.3% rise. Annually, core inflation, which is the Fed's preferred inflation measure increased 1.6%, unchanged from June's
Gold prices have seen some expected selling pressure after prices hit a fresh six-year high earlier in the week. The latest economic data is having little impact on prices, in initial reaction; December gold futures last traded at $1,536.70 an ounce, relatively unchanged on the day.
However, the weak inflation data is not a major negative for the gold market. Many economists have note that the weak inflation data will continue to support looser monetary policy action from the Federal Reserve.
Economists also note that the data should help to relieve some recession fears as consumer activity remains strong. The report noted that personal spending increased 0.6% in July, up from June’s 0.3% increase. Economists were forecasting a 0.3% increase.
Meanwhile personal savings grew less than expected, rising 0.1%, compared to June’s 0.4% rise. Economists were expecting to see a 0.3% increase.
https://www.kitco.com/news/2019-08-30/Gold-prices-holding-steady-following-muted-U-S-PCE-inflation-data.html
2019-08-30 12:33:00Z
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