(Kitco News) – Gold prices hold at $ 1500 when inflationary pressures remain subdued in September
On Thursday, the Department of Commerce said the Personal Personal Consumption (PCE) index was unchanged last month, missing expectations. Economists predicted an increase of 0.1%. This is the second time PCE inflation has missed expectations.
Annually, core inflation, which is the Fed's preferred inflation measure, increased 1.7%, which is a mark from August's reading.
Gold prices are making modest gains, but see little reaction to weaker-than-expected inflation data. December gold futures last traded for $ 1,510.80 ounces, up 0.94% on the day.
Some analysts have said that weak inflation data are positive for gold prices, as it will keep pressure on the Federal Reserve to maintain loose monetary policy.
On Wednesday, the Federal Reserve lowered interest rates for the third time in a row since July. After the meeting, Central Bank Chairman Jerome Powell said he has no rush to raise interest rates. "We need to see a significant rise in inflation before we can consider raising interest rates," he said during the press conference.
Together with mixed inflation data, the report noted mixed consumer spending and revenue data. Although US consumers are seeing an increase in their revenue, they are not spending the extra month.
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