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(Kitco News) – Gold prices continue to solid gains even as inflationary pressures continue to remain relatively muted
On Tuesday, the Commerce Department said its Core Personal Consumption Expenditure Index, increased in June, 0.2% in line with expectations. Every year, core inflation, which is the Fed's preferred inflation measure, increased 1.6%, unchanged from May's reading. This is the third monthly inflation that has occurred at this level.
Gold prices showed modest gains before the report, but saw little movement in an initial reaction to the data. August gold futures traded recently at $ 1,429.90 an ounce, up 0.67% on the day. The gold market continues to benefit from expectations of an aggressive monetary policy that could be announced tomorrow.
Some economists note that hungry inflationary pressures will prompt the Federal Reserve to cut tariffs by 25 basis points.
"There are no big surprises here, but the lack of year-on-year core and core inflation will solidify some views at FOMC that something needs to be done to boost inflation expectations," said Adam Button, Forexlive.com general manager.
Outside of inflationary pressures, the report showed that consumers are starting to save a little more on their payment payments. The report said personal income rose 0.4% last month, compared with May's 0.5% increase. The data were in line with expectation.
Meanwhile, the report said personal spending increased 0.3% last month, in line with expectations and following a revised 0.5% increase in May.
According to some economists, the latest data shows that the US consumer remains a healthy and critical component of economic growth.
Disclaimer: The views expressed in this article are those of the author and may not reflect those Kitco Metals Inc. The author has endeavored to ensure accuracy of the information provided; however, neither Kitco Metals Inc. nor can the author guarantee such accuracy. This article is for informational purposes only. There is no request to make any exchange in securities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accepts no liability for loss and / or damage resulting from the use of this publication.
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