Gold Prices Surge on Cooler PCE Inflation Data, Despite Fed Rate Hike Expectations

The recent US inflation data release has had an unexpected impact on gold prices. Despite expectations of a Federal Reserve rate hike, cooler-than-expected PCE (Personal Consumption Expenditures) inflation numbers led to a rise in gold prices.

Spot gold climbed 0.7% to $4,209.71 per ounce, while US gold futures gained 1.5% to $4,241.90. The weaker US dollar also contributed to the increase in gold prices, making it cheaper for buyers using other currencies.

However, by the end of the day, gold prices fell back down to their opening levels, giving up earlier gains despite the softer inflation data. According to gold market enthusiasts, the Federal Reserve may delay another round of interest rate hikes, which could offer some support to gold.