Gold prices were lower in a Reuters market snapshot before U.S. inflation data showed the Personal Consumption Expenditures (PCE) price index rose 3.6% in September from a year earlier, still above the Federal Reserve’s 2% goal.
Reuters reported that by 7:21 a.m. EDT (11:21 GMT) Oct. 29, spot gold was down 0.8% at $4,035.28 an ounce, while December U.S. gold futures had fallen 0.1% to $4,047.10. Reuters cited the dollar’s advance as a headwind, saying it raised the local-currency cost of dollar-priced gold for some overseas buyers.
On Oct. 28, the Federal Open Market Committee voted 10-2 to keep its federal funds target range at 3.75% to 4%. Two members favored a quarter-point increase. The committee said, “Inflation remains elevated,” and its inflation goal is 2%.
The Bureau of Economic Analysis released the September PCE data at 8:30 a.m. EDT (12:30 GMT) Thursday. The index rose 0.5% from August; excluding food and energy, it advanced 0.3%. The two measures were up 3.6% and 3.1%, respectively, from a year earlier.
EconoTimes previously covered gold’s decline ahead of the Fed’s decision.
