US Inflation Softer Than Expected Sends Gold Prices Higher

Gold prices gained in India on softer-than-expected US inflation data, which reinforced expectations that the Federal Reserve may leave interest rates unchanged at its October meeting.

The headline Personal Consumption Expenditures (PCE) price index rose 0.3% month-on-month, while core PCE increased 0.2%, indicating relatively moderate inflation pressure.

However, revised data showed US Q2 GDP growth at 2.2%, sharply higher than the earlier 1.5% estimate, and Q1 growth was also revised upward, highlighting continued economic resilience.

In India, physical gold demand improved modestly as lower prices attracted buyers ahead of the festive season, narrowing dealer discounts to around $43 per ounce from $60 last week.