Gold slips as sticky US PCE inflation fails to boost Fed rate-hike expectations
Gold (XAU/USD) trades around $4,620 on Wednesday at the time of writing, down 0.83% on the day.
On Wednesday, the price of gold slipped as the US Personal Consumption Expenditures (PCE) inflation index, released by the Federal Reserve, failed to boost rate hike expectations. The PCE Price Index increased by 3.7% year-over-year in July, the same as the previous month, exceeding market expectations of 3.6%. However, the core PCE Price Index, excluding food and energy prices, remained steady at 3.3% YoY.
Bearish sentiment on gold grew modestly following the release of the inflation data, but it did not significantly alter market expectations for the Federal Reserve's September meeting. The chance of a rate hike at the meeting remains around 36%, while the probability of unchanged rates is approximately 64%, unchanged from before the PCE release.
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- Gold slips ahead of US PCE as US Dollar firms modestly fxstreet.com
- Dollar inches higher ahead of US inflation data; Aussie gains on rate bets finance.yahoo.com
