Navigating the Effects of Rising US PCE on XAUUSD – 29-2-2024

The US Personal Consumption Expenditures (PCE) is an important economic indicator that provides insights into consumer spending and inflationary pressures in the United States. When the US PCE rises, it can have both positive and negative effects on the XAUUSD (Gold-US Dollar) pair.

Today’s given signal :

Negative Effects of Rising US PCE on XAUUSD

1. Interest Rate Hikes: Rising US PCE often prompts the Federal Reserve to increase interest rates in order to contain inflation. Higher interest rates make gold less attractive as an investment, as it offers no yield. As a result, gold prices may face downward pressure as higher interest rates reduce the opportunity cost of holding gold.

2. Strong US Dollar: A rising US PCE can also strengthen the dollar. A strong US dollar can make gold more expensive for foreign investors, reducing demand for gold. This reduced demand can lead to a decline in the gold price in US dollar terms.

3. Economic Stability: A rising US PCE can signal a healthy economy, which may make investors less concerned about holding gold as a hedge against economic uncertainty. In such an environment, demand for gold may decrease, leading to a decline in the gold price.

Previous released data results :

On last PCE data (26-1-2024) we predict to BUY XAUUSD as for lower PCE Data price was raised.

Check the previous blog :

Check last given signal :

Performance :

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