The Fed's preferred index data for measuring inflation, which would give us insight into interest-rate trends for the coming period, has just been released.
This time the data was somewhat conflicting as the PCE price index recorded an increase both annually and monthly compared to the ratios recorded in the previous reading. While core PCE price index data slowed, it remains high and far from the Fed's target of slowing inflation to 2%.
Immediately after the data was released, gold maintained its gains and tried to gain more ground before returning to declines again, while the dollar remained down because the data did not support it enough to turn its direction upward, which we expect to be temporary before going back up again.
Gold prices rose during these moments with the end of trading for the week and the current month following PCE data, and gold is bracing for its biggest monthly decline since last February of close to 4% and a second consecutive drop as yields on the 10-year Treasury rose.
City Index senior analyst Matt Simpson said Gold would need to see bonds and a weaker dollar to work its way back up but that looks tough for now
Investors will focus heavily on the manufacturing PMI report for September, which will be published on Monday, for further indications of the factory sector's current health. Markets expect PMI data to indicate a downturn in factory activity for the eleventh consecutive month. Government jobs data is also expected at the end of next week's trading wh
