Gold Rises on Soft US PCE Inflation Data
Gold climbed toward $4,200 an ounce on Thursday, recovering losses from the previous session as softer-than-expected US PCE inflation data reduced expectations for a Federal Reserve interest rate hike this month. The US PCE price index rose 0.3% in August, below the 0.4% forecast, while core PCE increased 0.2%, also coming in below expectations for a 0.3% gain. Markets now see roughly a 38% chance of a Federal Reserve rate hike in October, down from 51% before the PCE release. Oil prices also eased amid signs of improving energy flows from the Middle East, despite continued deadlock in US-Iran negotiations. Meanwhile, Treasury yields remained near multi-decade highs amid concerns over persistent energy-driven inflation, which could lead to tighter monetary policy. Traders continue to price in around a 97% probability of a Fed rate increase in December.
Story updates
Gold climbed toward $4,200 an ounce on Thursday, recovering losses from the previous session as softer-than-expected US PCE inflation data reduced expectations for a Federal Reserve interest rate hike this month. 3% gain. Markets now see roughly a 38% chance of a Federal Reserve rate hike in October, down from 51% before the PCE release. Oil prices also eased amid signs of improving energy flows from the Middle East, despite continued deadlock in US-Iran negotiations.
Meanwhile, Treasury yields remained near multi-decade highs amid concerns over persistent energy-driven inflation, which could lead to tighter monetary policy. Traders continue to price in around a 97% probability of a Fed rate increase in December.