Gold Surges on Soft US PCE Inflation Data and Lower Rate Hike Odds

Gold prices surged on Thursday as investors reacted to softer-than-expected US PCE inflation data, which reduced expectations of a Federal Reserve interest rate hike this month.

The US Personal Consumption Expenditures (PCE) price index rose 0.3% in August, missing the forecasted 0.4% gain, while core PCE increased 0.2%, below the expected 0.3% increase.

This development has shifted market expectations, with traders now seeing a roughly 38% chance of a Federal Reserve rate hike in October, down from 51% before the PCE release.