Gold Analysis June 26 - Core PCE Data Reinforces Fed Rate Hike GOLD (US$/OZ)TVC:GOLDBlogngoaihoi"Gold Analysis June 26 – Gold rose to near 4,045 yesterday despite inflation data indicating a 'higher-for-longer' interest rate scenario, supporting the Federal Reserve's stance to hold rates steady, despite US President Donald Trump's desire for rate cuts. However, gold prices later declined due to expectations of a Fed rate hike. Data released by the US Bureau of Economic Analysis (BEA) on Thursday showed that the Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation gauge, rose 3.4% year-on-year in May, compared to a 3.3% increase in April. The annual Core PCE index marked its highest level since October 2023. Meanwhile, headline PCE inflation climbed to 4.1% year-on-year in May, up from 3.8% in April. Both the core and headline PCE indexes matched market expectations. The latest inflation data barely altered the view of maintaining high interest rates for an extended period. According to the CME FedWatch Tool, traders are currently pricing in a 60% probability of a rate hike at the September meeting, down from 67% earlier in the day. However, with oil prices returning to pre-war levels, fears of a prolonged inflation shock have eased. Nonetheless, inflation remains well above the Federal Reserve's 2% target, suggesting that monetary policy is likely to remain tight for longer. Consequently, it may be difficult for gold prices to stage a significant recovery." "In addition, investors will closely monitor developments in the Middle East. Bloomberg reported on Thursday that a ship was struck by an unidentified object in the Strait of Hormuz, just hours after several cargo vessels were forced to turn back while attempting to cross the critical waterway. Any signs of escalating tensions in the Middle East could spark fears of high inflation, putting pressure on gold prices. Today, the US economic calendar will feature speeches from Federal Reserve officials and the final reading of the June Consumer Sentiment Index released by the University of Michigan (UoM)." Read more : blog ngoại hối - https://blogngoaihoi (.) co/