Investors sell gold near $4,000 per ounce ahead of key PCE inflation data, weighing Fed policy expectations.
Gold futures (GC=F) fell more than 2% on Wednesday, trading near $4,000 per troy ounce as the US dollar (DX-Y.NYB) rallied. The decline reflects growing investor caution ahead of Thursday’s Personal Consumption Expenditures (PCE) report, the Federal Reserve’s preferred inflation gauge.
Recent remarks from Fed officials, including Chair Kevin Warsh, reinforced expectations that interest rates may stay elevated longer to combat persistent inflation. Higher bond yields and a stronger dollar have pressured non-yielding assets like gold, which has underperformed broader markets since late February.
Technical analysts warn that a sustained break below the $4,000 to $4,100 range could trigger further selling. Gold prices have dropped roughly 24% from this year’s record highs, driven by sticky inflation and resilient labor market data.