GOLD
Gold prices fell in early Wednesday trading as the US dollar strengthened. With traders now eyeing the release of PCE inflation data on Friday— the Federal Reserve’s preferred inflation gauge—gold prices are holding just above the $2,500 level.
The US inflation data due on Friday will be a crucial focus for the Fed ahead of the September meeting, which is widely anticipated to deliver the first rate cut since March 2020. The main question now is the size of the cut, with some speculating it could be as large as 50 basis points, and how many more might follow.
Friday’s PCE numbers will offer clues; if the figure comes in lower than expected, it could boost expectations of a more dovish Fed, leading to a softer dollar and lower Treasury yields, creating upside potential for gold prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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