(Kitco News) - The gold market saw some short-term buying pressure following the release of better-than-expected inflation data on Friday morning.
The Commerce Department's core personal consumption expenditures (PCE) price index, which excludes volatile food and energy prices, nudged up 0.1% in August, lower than the expected 0.2% increase.
For the year, the Federal Reserve’s preferred inflation gauge increased by 2.7% last month after three consecutive months at 2.6%. Annual core PCE inflation was in line with expectations, as economists forecasted a 2.7% increase.
Headline PCE inflation also moved in line with expectations, rising 0.1% last month. For the year, inflation rose by 2.3%, down from July’s 2.5% reading and also lower than the 2.3% consensus forecast.
The gold market saw a spike in buying after the 8:30 am EDT release of the inflation data. Spot gold last traded at $2,671.85 an ounce, and is essentially flat on the day.
Along with relatively muted inflation, the latest economic report also showed slowing income and consumption growth for U.S. consumers.
The report indicated that personal income increased by 0.2% last month, down from 0.3% in July. The data was lower than expected, as consensus forecasts had predicted a 0.4% increase.
Consumer spending was more restrained as well, as personal consumption increased by 0.2% last month, significantly lower than July’s 0.5% reading and also below the 0.3% expectation.
