Gold prices trying to hold support at $1,800 as U.S. PCE rises 0.2% in November, in line with expectations
(Kitco News) - Although off its recent highs, the gold market continues to hold on to $1,800 an ounce even as inflation remains persistently high.
Friday, U.S. Department of Commerce said its core Personal Consumption Expenditures price index increased 0.2% in November, following October’s 0.2% increase. The data was in line with economists’ expectations.
For the year core inflation rose 4.7%, in line with economist expectations. Core inflation has dropped compared to October’s rise of 5.0%. Core PCE is the Federal Reserve’s preferred inflation gauge.
The gold market is not seeing much rection to the latest inflation data. February gold futures last traded at $1,803.30 an ounce, up 0.45% on the day.
Headline inflation rose 0.1% last month, down compared to October’s rise of 0.4%. For the year inflation rose 5.5%, down from the previous reading of 6.1%.
Some economist note that recession fears appear to be weighing on U.S. consumers as income increases but personal spending comes in weaker than expected.
The report said that personal consumption rose 0.1%, down from October’s 0.8% increase. Economists were forecasting a 0.2% increase.
At the same time, personal income increased 0.4%; economists were looking for a 0.3% increase.