Gold prices remain stable following damped US PCE inflation data
(Kitco News) – Although not high, the gold market still holds significant gains for the month, even after data pointed to dampened inflationary pressures in July.
On Friday, the Department of Commerce said the Core Personnel Consumption (PCE) index rose 0.2% last month, missing expectations. Economists predicted a 0.3% increase. Annually, core inflation, which is the Fed's preferred inflation target, rose 1.6%, unchanged from June
. Gold prices have had some expected sales pressure after prices hit another six-year high earlier this week. The latest economic data has little impact on prices, in the first place; Gold futures in December last traded for $ 1,536.70 ounces, relatively unchanged on the day.
However, the weak inflation data is not a big negative for the gold market. Many economists have noted that weak inflation data will continue to support looser monetary policy measures by the Federal Reserve.
Economists also note that the data should help relieve some downturn, as consumer activity is still strong. The report noted that personal expenses increased 0.6% in July, up from 0.3%. Economists predicted an increase of 0.3%.
Meanwhile, personal savings grew less than expected, increasing 0.1[ads1]%, compared with a 0.4% increase in June. Economists expected an increase of 0.3%.
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