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Gold eases from three-month high near $4,600 after US PCE data
US PCE inflation held at 3.7% year over year in July, keeping pressure on expectations for a Fed rate hike in September.
Gold prices retreated from a three-month high to trade near $4,610 in early Asian trading on Thursday, after US Personal Consumption Expenditures (PCE) inflation data landed largely in line with expectations, according to FXStreet.
The US Bureau of Economic Analysis reported the PCE Price Index was unchanged at 3.7% year over year in July, slightly above the market view of 3.6%. Core PCE, which excludes volatile food and energy, also held steady at 3.3% year over year, while both the headline and core indices rose 0.2% month over month.
FXStreet also noted that traders shifted marginally toward higher Fed hike odds, with markets pricing in nearly a 38.0% chance of a 25 basis points rate hike in September, up from 36% before the data, using the CME FedWatch tool. The outlook could be further influenced by Fed Chair Kevin Warsh’s speech at the Jackson Hole Symposium on Friday.
In a technical read, FXStreet said XAU/USD remains supported above the 100-day simple moving average and the 20-day Bollinger middle band, with momentum still constructive but less steady as the RSI (14) sits just below overbought levels.
Latest closeGold $4,666.20 ▲0.6%