The release of higher US PCE data on 26th July 2024 is expected to have a significant impact on the gold market. PCE, or personal consumption expenditures, is an important economic indicator that measures consumer spending and inflation. A higher PCE reading typically reflects increased economic activity and inflationary pressures, which can have both positive and negative implications for gold prices.
Today’s given signal : https://t.me/calendarsignal/14034
higher PCE data can also have negative effects on gold prices. If economic growth is strong and inflation remains under control, the Federal Reserve may raise interest rates. This increase can make holding gold less attractive as it does not pay interest and does not generate returns on its own. Additionally, higher PCE data may indicate a stronger dollar, which can also weigh on gold prices.
Impact of Higher PCE Data on Gold Price
When PCE data shows an upward trend, it generally signals a stronger economy and inflationary pressures. This can impact the gold market in several ways:
1. Increased Interest Rates: Higher PCE data often leads the Federal Reserve to raise interest rates. Rising interest rates tend to make gold less attractive as an investment, as investors prefer higher-yielding assets. As interest rates increase, the opportunity cost of holding gold goes up, causing some investors to sell gold in favor of other assets.
2. Decreased Demand: When economic growth is strong and inflation is under control, the demand for gold may decline. Investors may shift their attention away from gold as a hedge against inflation and focus more on other assets that perform well in a healthy economy. This selling pressure on gold can lead to lower prices.
3. Strong US Dollar: Higher PCE data can also strengthen the US Dollar. A strong US Dollar can make gold more expensive for foreign investors, as they need to buy more USD to buy gold. This increased demand for the US Dollar can negatively impact the gold price.
Previous released data results :
On last PCE data (28-6-2024) we predict to BUY XAUUSD as for bad PCE data, GOLD price was raised.
Check last given signal : https://t.me/calendarsignal/13389
Performance :
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