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(Kitco News) – The gold market is back above support at $ 1,750 an ounce and seeing modest bullish action as inflation pressures remain elevated for the third consecutive month.
On Friday, the Commerce Department said its index of basic personal consumption expenditure rose 0.3% in August, beating expectations. On an annual basis, core inflation, which is the Fed’s preferred measure of inflation, rose 3.6%, unchanged from July.
The gold market sees little movement in what economists describe as a relatively online inflation report. December gold futures last traded at $ 1,754.10 an ounce, down 0.17% on the day.
The report says PCE inflation data rose 0.4% last month, unchanged from July’s 0.4% increase. However, for the year, consumer price pressures rose 4.3% from 4.2% in July.
Positive news for economic growth, the report notes robust consumption. Personal spending rose 0.8% last month, up from 0.3% in July. The data was better than expected as economists sought a 0.7% increase.
While consumers seem to be spending more, incomes seem to be increasing at a slower rate. The report says personal income rose 0.2% in August, after jumping 1.1% in July. The data was in line with expectations.
This week, Federal Reserve Chairman Jerome Powell continued to downplay the looming inflationary threat. He said that although the global supply crisis may lead to stiffer inflation than expected, the environment remains transient.
“We believe inflation will remain high until supply bottlenecks are resolved,” Powell told the House Committee on Financial Services Thursday, “It is not possible to say exactly when that will happen. We should see relief in the next few months. and early next year. “
Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.
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