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Gold rises modestly as softer US PCE tempers Fed hike bets

Gold (XAU/USD) was up 0.45% to around $4,200 after US core PCE rose 0.2% month over month in August, below the 0.3% forecast.

Reported · Written up by our desk · Precious Metals

Gold prices edged higher on Wednesday, consolidating gains after recovering from a seven-week low earlier in the week, according to FXStreet.

The outlet cited a softer-than-expected US Personal Consumption Expenditures report that pushed back October Fed hike expectations and helped lift the non-yielding metal as the US dollar and Treasury yields pulled back.

FXStreet said the core PCE Price Index rose 0.2% month over month in August, below the 0.3% forecast, while headline PCE increased 0.3% month over month versus a 0.4% expectation. On an annual basis, both core and headline inflation held at 3.0% and 3.4%, respectively.

FXStreet also noted that stronger growth and employment figures limited the dollar and yield pullback, including an annualized 2.2% expansion in second-quarter GDP and ADP Employment Change rising by 90K in September, above the 70K forecast.

Latest closeGold $4,189.00 ▲0.2%

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