Gold Prices Stabilize as Core Inflation Remains Above Target

Gold prices stabilized at the start of October after retreating from August's gains. The precious metal had pulled back in September, partly due to shifting expectations around U.S. monetary policy and investment flows.

The latest personal consumption expenditure data showed that core PCE inflation rose 0.2% month on month in August 2026, remaining at 3.0% annually. Headline PCE inflation stood at 3.4% year on year, matching the annual rate recorded in July.

While monthly core inflation was contained, annual inflation remained above the Federal Reserve's longer-term objective of 2%. This means that inflation has not returned to target, despite some moderation in individual monthly readings.