Gold ticks higher as US PCE inflation grows below expectations
The post Gold ticks higher as US PCE inflation grows below expectations appeared on BitcoinEthereumNews.com.
Gold clings to moderate gains on Friday after softer-than-expected US PCE inflation figures. The US Dollar Index has extended its reversal from two-year highs following the release. XAU/USD remains under pressure, limited below $2,605 Gold (XAU/USD) is trading with a moderate positive tone on Friday following the sharp sell-off earlier this week. Cooler-than-expected US Personal Consumption Expenditures (PCE) Price Index data on Friday has increased selling pressure on the US Dollar, although the precious metal is struggling to put a significant distance from the one-month lows hit this week. PCE Inflation has increased 0.1% in November, against expectations of a 0.2% increment. The yearly rate accelerated to 2.4% from the previous month’s 2.3% reading, still below the 2.5% anticipated by the market consensus. Likewise, the Core PCE eased to 0.1% from 0.3% in October while the yearly inflation remained steady at 2,8% against market expectations of an uptick to 2.9%. On Thursday, an upward revision to the third quarter’s US Gross Domestic Product (GDP), and the lower-than-expected Jobless claims have endorsed the Federal Reserve’s (Fed) hawkish stance for 2025. Higher US yields, strong USD keep Gold recovery subdued XAU/USD is trading higher for the second consecutive day but lacks upside momentum, with traders reluctant to sell the US Dollar ahead of a key inflation report to be published at 13:30 GMT. US Treasury yields are steady above the 4.50% mark after having rallied 40 basis points over the last two weeks. This acts as a headwind for Gold as it is a non-interest-paying asset. Data released on Thursday showed that the US economy grew at a 3.1% annualized pace in the third quarter, significantly improving from the already healthy 2.8% advance previously estimated. Likewise, weekly Jobless Claims declined to 220K on the week ending December 13 from the previous week’s 242K…