Gold prices declined significantly after the release of key U.S. economic data. The July Personal Consumption Expenditure (PCE) price index, the Federal Reserve's preferred inflation gauge, came in slightly hotter than economists' expectations. [8, 14, 18] Additionally, orders for durable goods in July surpassed forecasts. [5] This data suggests continued economic strength and persistent inflation, increasing the likelihood that the Federal Reserve will implement another interest rate hike in September. The prospect of higher rates raises the opportunity cost of holding non-yielding gold, leading to investor selling and profit-taking after the metal recently reached a three-month high. [7, 12]
Gold Prices Fall on Stronger-Than-Expected U.S. Economic Data
Gold sector
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