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Tags: Federal Reserve, Inflation, PCE, XAUUSD
Financial market remains fixated upon future data from the United States, especially pertaining to inflation to gauge the likelihood of an early rate cut. Likewise, comments from Fed officials will be monitored at the same time, with at least ten are due to speak this week.
Previously, data from US showed that durable goods orders experienced its largest downfall in nearly 4 years. The fall was mainly due to lower business investment on equipment, an early sign that the economy is losing its momentum.
The report joined a stream of weak data which includes retail sales, housing starts and manufacturing production. Softness which has been seen in these data are blamed on cold temperatures from last month as well as difficulties of adjusting the data to seasonal fluctuations.
(US PCE Price Index)
Nonetheless, the main concern for both investors and Fed alike are inflationary pressure. Although recent reports show substantial depreciation in price levels, some Fed officials signalled that they are in “no hurry” to cut interest rates. They argued that upside risks on inflation continues to lurk, which may cause price pressure to resurge.
(Gold spot price per oz)
As of writing, gold price dipped 0.01% to 2030.29 while the US dollar index ticked up 0.02% to 103.80.
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