Data on the Fed's preferred indicator for measuring inflation has now been released, which should give us insight into interest pricing trends for the coming period.
The data this time was mixed, as the annual core personal consumption expenditures price index recorded a slowdown, while the monthly price index recorded an acceleration, compared to the rates recorded in the previous reading. While the core personal consumption expenditures price index data remained the same compared to the percentages recorded in previous readings. In general, the rates are still high and far from the Federal Reserve’s target of slowing inflation to 2%.
Immediately after the data was released, gold futures declined, while spot contracts stabilized, coinciding with a rise in the dollar index.
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Personal consumption expenditure data
The annual core PCE price index came in at 3.7%, which was what experts had expected, while it was at 3.9% in the previous reading but was revised to 3.8%.
The core personal consumption expenditures price index on a monthly basis recorded 0.3%, which is what experts expected, and the previous reading was 0.1%.
As for the main personal consumption expenditures price index on an annual basis, it recorded 3.4%, which is what experts expected. It had recorded 3.5% in the last reading, but it was revised to 3.4%.
On a monthly basis, it recorded 0.4%, and expectations were at 0.3%, while the previous reading recorded 0.4%.
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Gold and the dollar now
Gold futures fell 0.14% to $1,994 an ounce.
Meanwhile, spot gold settled at $1,985 per ounce.
On the other hand, the dollar index rose by 0.1% to 106.52 points.
