Gold consolidates below $3,300 as traders keenly await the release of the US PCE Price Index
- Gold price meets with a fresh supply on Friday amid the emergence of some USD dip-buying.
- Trade tensions, geopolitical risks, and Fed rate cut bets should limit losses for the commodity.
- Traders now look forward to the US PCE Price Index for Fed rate cut bets and a fresh impetus.
Gold price (XAU/USD) consolidates below the $3,300 mark, or the daily low during the first half of the European session on Friday as traders opt to move to the sidelines ahead of the crucial US inflation figures. Heading into the key data risk, some repositioning trade assists the and trigger a fresh bout of a short-covering move, which should allow the Gold price to reclaim the $3,400 mark. The momentum could extend further towards the next relevant barrier near the $3,432-3,434 region.
Economic Indicator
Core Personal Consumption Expenditures – Price Index (YoY)
The Core Personal Consumption Expenditures (PCE), released by the US Bureau of Economic Analysis on a monthly basis, measures the changes in the prices of goods and services purchased by consumers in the United States (US). The PCE Price Index is also the Federal Reserve’s (Fed) preferred gauge of inflation. The YoY reading compares the prices of goods in the reference month to the same month a year earlier. The core reading excludes the so-called more volatile food and energy components to give a more accurate measurement of price pressures.” Generally, a high reading is bullish for the US Dollar (USD), while a low reading is bearish.