In today’s market update, we will discuss the impact of higher U.S. personal consumption expenditures (PCE) data on the price of gold. Higher PCE data often leads to a reduction in the expectation of big rate cuts in the future, which can have a bearish impact on gold prices.
Today’s given signal : https://t.me/calendarsignal/14812
What Higher PCE Data Means:
When PCE data shows an increase, it suggests that inflationary pressures may be building. This raises concerns among investors about the potential for the Federal Reserve to take action to combat inflation. In this scenario, investors may sell their gold holdings in favor of higher-yielding assets, such as bonds and dividend-paying stocks.
Reduced Rate Cut Expectations:
Higher PCE data also affects expectations for the Federal Reserve’s monetary policy. Investors had expected the central bank to cut interest rates in September to support economic growth. However, the release of higher PCE data may cast doubt on the likelihood of a significant rate cut.
Impact on Gold Price:
The decline in expectations for a big rate cut in September, triggered by higher PCE data, is expected to weigh on the gold price. Investors may perceive the gold market as less attractive, leading to a decrease in demand. As a result, the gold price may decline, as investors seek alternative investment opportunities.
Previous released data results :
On last PCE data (26-7-2024) we predict to SELL XAUUSD as for higher CORE PCE data, XAUUSD price was fall.
Check the previous blog : https://blog.forextrade1.co/impact-of-us-pce-data-on-gold-today/
Check last given signal : https://t.me/calendarsignal/14034
Performance : https://t.me/calendarsignal/14062
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