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Gold price rallies as U.S. annual core PCE beats expectations in December

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(Kitco News) Gold is maintaining its early-morning rally after the U.S. annual core PCE price index came in above expectations in December, advancing 1.5% versus 1.3%.

On a monthly basis, the core PCE price index was up 0.3% in December, the U.S. Department of Commerce said on Thursday.

The core inflation strips out volatile food and energy prices and is the U.S. central bank’s preferred inflation measure.

Gold continued to advance, rising to new daily highs following the data release. April Comex gold futures were last trading at $1,876.40, up 1.91% on the day. 

The report also showed that real personal consumption was down 0.6% in December. November’s data was downwardly revised to a drop of 0.7%. Personal income was up 0.6% last month. Economists were expecting to see a rise of just 0.1%. 

“The increase in personal income in December primarily reflected increases in government social benefits, compensation, and personal dividend income that were partly offset by a decrease in proprietors’ income,” the report said.

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