Gold prices ignore drop in PCE inflation pressures
(Kitco News) - Gold prices see little change and remain under pressure as inflation pressures fall to its summer lows.
Wednesday, the Department of Commerce said that its Core Personal Consumption Expenditures Index, increased 0.1% in October, missing economist expectations. Annually, core inflation, which is the Fed's preferred inflation measure increased 1.6%, down from 1.7% reported in September. Inflation is at its lowest point since July.
Gold prices have been under pressure through most of the morning, weighed down by positive economic data; however the latest inflation data is having little impact on the precious metal. February gold futures last traded at $1,462.30 an ounce, down 0.35% on the day.
The latest data report also shows that U.S. consumers continue to do the heavy lifting when it comes to supporting economic growth. The report said that U.S. personal spending increased 0.3%, in line with expectations.
However, consumers didn’t see a major increase in their paychecks as personal income was unchanged last month. Economists were expecting to see a 0.3% increase.