Gold Stabilizes Near $4,700 as Markets Await US Core PCE Inflation Data

Gold prices are stabilizing near $4,700 as markets await the release of the US core Personal Consumption Expenditures (PCE) price index report. The upcoming data is expected to provide clues on the Federal Reserve's monetary policy trajectory and its impact on gold.

The core PCE price index is the Fed's preferred inflation gauge, and its release is closely watched by markets for signals on whether price pressures are cooling enough to warrant interest rate cuts. A softer-than-expected reading could reinforce expectations of policy easing, which tends to support non-yielding assets like gold.

As of late March 2025, the annual core PCE rate stood at 2.8%, still above the Fed's 2% target. Analysts project a modest uptick to 2.9% year-over-year in the April report, with a monthly figure expected to rise by 0.3%. These figures will be pivotal in shaping near-term gold price action.

The trend for gold remains bullish as long as prices hold above the $4,650-$4,700 support band. A break below that area could open the door for a deeper correction toward $4,550. Conversely, a decisive move above $4,750 would likely signal renewed upside momentum.