Gold price faces selling pressure near $2,350 as US Dollar rebounds. Higher US core PCE inflation data has prompted the US Dollar’s recovery. Market expectations for the Fed delaying rate cuts remain firm.
Gold price (XAU/USD) falls from $2,350 in Friday’s early New York session as the United States annual core Personal Consumption Expenditure Price Index (PCE) data for March has remained above estimates. The annual underlying inflation data rose at a higher pace of 2.7% from the estimates of 2.6% but decelerated from 2.8% recorded in February.
Higher-than-expected figures weigh on Gold’s appeal as it lighten hopes of Federal Reserve rate cuts in the September monetary policy meeting. The monthly underlying inflation data grew in line with expectations and the prior reading of 0.3%. The scenario bodes well for bond yields and the US Dollar.
10-year US bond yields are slightly down at 4.69% but are still close to a five-month high. Yields remain firm as stalling progress in inflation declining to the 2% target will strengthen prospects for the Fed delaying rate cuts to later this year.
