Gold Prices Dip in Anticipation of Pivotal U.S. Inflation Report

26 February 2024

Gold prices saw a slight decline as investors and traders turned their attention to the upcoming U.S. inflation data, expected to be released this week. This data is significant as it could potentially affect the Federal Reserve’s decisions on interest rate cuts. Spot gold fell by 0.5% to $2,025.91 an ounce, while U.S. gold futures experienced a 0.6% drop to $2,036.60. The focus is particularly on the U.S. personal consumption expenditure (PCE) price index, the Federal Reserve’s preferred inflation measure, which is anticipated to show a 0.4% monthly increase. Analysts suggest that higher-than-expected PCE data might exert downward pressure on metal prices, though gold is expected to stay above the $2,000 mark unless the economic data released this week is exceptionally high.

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