Gold

Recent economic data suggests a sustained cooling of inflation, aligning with the Federal Reserve's goals and potentially setting the stage for future monetary policy adjustments. Both the Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI) reports indicate a decelerating trend in consumer prices.

Gold futures experienced a resurgence on Thursday, driven by growing optimism surrounding Friday's upcoming Personal Consumption Expenditures (PCE) report. The U.S. Bureau of Economic Analysis (BEA) is set to release this crucial economic indicator, which measures changes in prices for goods and services purchased by American consumers.

Gold prices continued to trade lower, now for the second consecutive day. As of 5:30 PM ET, the most active August gold futures contract was fixed at $2,309.40, down $22.30 or - 0.96%.

This Friday's Personal Consumption Expenditures (PCE) report is poised to be one of the most significant economic indicators released this month. Economists surveyed by Dow Jones Newswires and the Wall Street Journal anticipate a deceleration in consumer prices for May, potentially signaling a shift in the inflationary landscape.

Key Expectations

Gold futures saw modest gains on Monday, primarily driven by a weakening dollar. As of 4:15 PM ET, the most active August gold contract settled at $2,345.90, up $11.20 or 0.48%. The dollar index declined by 0.35% to 105.491, contributing significantly to gold's upward movement.

Gold prices have experienced moderate to strong daily fluctuations as recent economic reports paint a mixed picture of the U.S. economy. Market participants remain focused on the Federal Reserve's potential trajectory regarding both the magnitude and timing of interest rate cuts this year.

Gold prices surged to their highest levels since June 7, with the August futures contract settling at $2,372.60, up $28.40. This rally, which began overseas and continued into New York trading, occurred despite minor gains in the dollar and rising yields.

Today's report is a Special Morning Edition: Has gold traded to a double bottom?

Gold futures, based on the most active August contract, initially rallied but closed moderately higher at around $2,340, gaining $6.80 on the day. The surge followed the release of the May Consumer Price Index (CPI) report at 8 AM Eastern time, which showed no noticeable rise in inflation compared to the previous month.

Gold experienced a dramatic sell-off today, as two significant economic events converged, causing the precious metal's prices to tumble. The single-day drop of over $80 was the largest since January 8, 2021, reflecting the market's response to the changing economic landscape and announcement by PBC.