XAU/USD climbs to $4,429 after April core PCE inflation undershoots expectations, easing Fed rate-cut concerns.
Gold prices rebounded to $4,429 on Thursday after the US Dollar weakened following softer-than-expected April core PCE inflation data. The metal had earlier dropped to a two-month low of $4,366 amid geopolitical tensions and rising oil prices.
The core PCE Price Index, the Federal Reserve’s preferred inflation gauge, rose 0.2% month-over-month in April, below the 0.3% increase in March and market forecasts. Year-over-year, core PCE climbed to 3.3%, matching analyst expectations. The data provided temporary relief to markets, though traders remain wary of persistent inflationary pressures from rising oil prices.
The US Dollar Index (DXY) eased to 99.15 after hitting a seven-week high of 99.54 earlier in the session. Gold’s recovery was also supported by cautious sentiment amid renewed US-Iran tensions, which raised concerns over supply disruptions in the Middle East.