[ad_1]
(Kitco News) – Although the gold market has peaked, the gold market is still posting strong gains for the month, even after the data showed slight inflationary pressure in July.
On Friday, the Ministry of Commerce said its index of basic personal consumption expenditure (PCE) rose 0.2% last month, thus missing expectations. Economists forecast an increase of 0.3%. Each year, core inflation, which is the Fed's preferred measure, rose 1.6%, unchanged from June.
Gold prices experienced an expected selling pressure after hitting a new high six years earlier in the week. The latest economic data have little impact on prices, in the initial reaction; The latest December gold futures traded at $ 1,536.70 an ounce, which is relatively the same.
However, the weak data on inflation is not a major negative factor for the gold market. Many economists have noted that weak inflation data would continue to encourage a more flexible monetary policy policy on the part of the Federal Reserve.
Economists also note that the data should help ease some fears of recession given that consumer activity remains strong. The report indicates that personal spending rose 0.6% in July, up from 0.3% in June. Economists forecast an increase of 0.3%.
At the same time, personal savings grew less than expected, up 0.1% from the 0.4% increase recorded in June. Economists were expecting an increase of 0.3%.
Warning: The opinions expressed in this article are those of the author and may not reflect those of the author. Kitco Metals Inc. The author has endeavored to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. It is not a solicitation to exchange products, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept any liability for losses and / or damages resulting from the use of this publication.
[ad_2]
Source link