Commodities
Gold Prices Rebound on Cooler Core PCE Reading
Gold futures have rebounded to $4,212.30 an ounce after core PCE cooled to 3.0% annually, beating a forecast of 3.3%. This is a relief bounce that has finally found a macro reason behind it.
The catalyst for the rally was the August personal consumption expenditures report, which showed core PCE rising 0.2% on the month for a 3.0% annual rate. This is in contrast to forecasts of 0.3% and 3.3%. Headline PCE came in at 3.4% annually against an estimate of 3.7%.
The bounce comes after gold fell more than 11% in June, its fourth straight monthly decline and worst quarter since 2013. It had recovered into early September but gave all that back and more after the Fed's first hike since 2023.