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Gold slips after soft US PCE inflation reaction fades

Gold (XAU/USD) reversed from a move above $4,200 to trade around $4,166, while the US Dollar trimmed losses and Treasury yields resumed their advance.

Reported · Written up by our desk · Major Pairs

Gold prices fell after an early bounce linked to softer US Personal Consumption Expenditures, or PCE, inflation data faded on Wednesday, FXStreet reports. XAU/USD briefly climbed above $4,200 before slipping to trade around $4,166.

FXStreet said the BEA data showed the core PCE Price Index rose 0.2% month over month in August, below the 0.3% forecast, while headline PCE rose 0.3% month over month, below expectations of 0.4%. On an annual basis, core and headline inflation held steady at 3.0% and 3.4%, respectively, both below market expectations.

Even so, the initial gold move weakened as the US Dollar trimmed its losses and US Treasury yields resumed climbing, according to FXStreet. The outlet also cited stronger US growth and employment figures that outweighed the softer inflation readings, including an annualized 2.2% expansion in Q2 and ADP Employment Change rising by 90K in September.

FXStreet added that gold remains above the seven-week low of $4,110 hit on Monday. It noted that the gold decline aligned with the shift back toward higher yields rather than a sustained inflation slowdown push.

Latest closeGold $4,189.00 ▲0.2%

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