Gold fell $10.2 – high U.S. PCE Index numbers raise fears that high inflation will fuel Fed rate hikes

Gold futures closed lower on Thursday (June 30), with markets pressured by fears that the continued rise in inflation numbers will prompt the Federal Reserve (Fed) to accelerate rate hikes.

  • The gold contract was down $10.2, or 0.56%, at $1,807.3 per ounce.
  • Silver was down 38.6 cents, or 1.86%, at $20.35 an ounce.
  • The platinum contract was down $14.6, or 1.6%, at $895.3 per ounce.
  • Palladium fell $30.50, or 1.6%, at $1,916.10 an ounce.

The U.S. Commerce Department reported that the general price index for personal consumption expenditures (PCE), which includes food and energy, rose 6.3% in May from a year earlier, following a 6.3% increase in April.

The core PCE index, which excludes food and energy and is the Fed’s preferred inflation indicator, rose 4.7% in May from a year earlier.

Meanwhile, the Labor Department announced that initial jobless claims fell by 2,000 last week to 231,000.

The number of Americans continuing to file for unemployment benefits fell to 1.33 million.

Investors are concerned that continued inflation in the United States will lead the Fed to raise interest rates. Fed Chairman Jerome Powell has already stated that the Fed will continue to raise interest rates to contain inflation. Even if the U.S. economy weakens.

Investors are waiting for the U.S. economic data today. These include the Purchasing Managers’ Index (PMI) for June, the final manufacturing figures from S&P Global and the June manufacturing index from the U.S. Institute of Supply Management (ISM).

The Spot Market is Open

Friday, July 1, 2022

Metals
Updated at
USD
Bid/Ask
Ounce
Change

Low/High
Gold
11.20
1,800.90
1,801.90
-6.60
-0.37%
1,800.00
1,808.70
Silver
11.20
20.00
20.10
-0.25
-1.26%
20.00
20.39
Platinum
11.20
891.00
901.00
-2.00
-0.22%
889.00
908.00
Palladium
10.55
1,849.00
1,999.00
-13.00
-0.70%
1,849.00
2,012.00
Rhodium
05.00
13,000.00
15,000.00
0.00
0.00%
13,000.00
15,000.00

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