Gold price steady as U.S. annual core PCE beats expectations in April - Kitco NEWS

(Kitco News) Gold is largely unchanged after the U.S. annual core PCE price index came in above expectations in April, advancing 3.1% versus the expected 1.4%.

On a monthly basis, the core PCE price index was up 0.7% in April, the U.S. Department of Commerce said on Friday.

The core inflation strips out volatile food and energy prices and is the U.S. central bank’s preferred inflation measure.

Gold first retreated but then recovered its minor losses following the data released. June Comex gold futures were last trading at $1,893.90, down 0.09% on the day. 

The report also showed that real personal consumption was down 0.1% in April. March data was upwardly revised to an increase of 4.1%. Personal income was down 13.1% last month. Economists were expecting to see a drop of 14.1%.

“The decrease in personal income in April primarily reflected a decrease in government social benefits. Within government social benefits, ‘other’ social benefits decreased as economic impact payments made to individuals from the American Rescue Plan Act of 2021 continued, but at a lower level than in March. Unemployment insurance also decreased, led by decreases in payments from the Pandemic Unemployment Compensation program,” the report said.

The rise in the key inflation measure mirrors the rise in the CPI and shows that the increasing price pressures are more than just “energy prices and base effects from a year ago,” said CIBC Capital Markets economist Andrew Grantham and Katherine Judge. 

Adblock test (Why?)

Article From & Read More ( Gold price steady as U.S. annual core PCE beats expectations in April - Kitco NEWS )
https://ift.tt/3ftpjZ9
Business

Bagikan Berita Ini