Inflation Data Triggers market Rally; Gold and Silver Surge
U.S. economic data released today showed the Personal Consumption expenditures (PCE) price index rose 2.7% in August year-over-year, aligning with economists’ expectations as reported by Reuters. The core PCE, excluding volatile food and energy costs, also met forecasts at 2.9%. The data sparked immediate movement in financial markets, driving up gold and silver prices.
The PCE is the Federal Reserve’s preferred inflation gauge, making this report a key indicator for future monetary policy decisions. A moderate inflation reading eases pressure on the Fed to maintain aggressive interest rate hikes, potentially supporting economic growth. Investors reacted positively, sending stock futures higher and boosting precious metals.
Spot gold climbed from $3,750 to $3,760 per ounce following the data release. Silver also experienced gains, rising from $45.25 to $45.52 per ounce.
Gram gold also saw an increase, moving from 5,012 to 5,029 Turkish Lira under the influence of the rising ounce price.
As of 1539 GMT, Dow Jones futures (YMCV1) were up 0.48%, S&P 500 futures (ESCV1) gained 0.42%, and Nasdaq 100 futures (NQCV1) rose 0.43%.
Further details to follow.
