NEW YORK (Kitco News) - The gold market is back above support at $1,762 an ounce and is seeing some modest bullish action as inflation pressures remain elevated for the third straight month.
Friday, the Department of Commerce said that its Core Personal Consumption Expenditures Index, increased 0.3% in August, beating expectations. Annually, core inflation, which is the Fed’s preferred inflation measure increased 3.6%, unchanged from July’s.
The gold market is seeing only a little movement in what economists are describing as a relatively in line inflation report. December gold futures last traded at $1,754.10 an ounce, down 0.17% on the day.
The report said that headline PCE inflation data increased 0.4% last month, unchanged compared to July’s 0.4% increase. However for the year consumer price pressures rose 4.3%, up from July’s annual reading of 4.2%.
Positive news for economic growth, the report noted robust consumption. Personal spending increased 0.8% last month, up from July’s increase of 0.3%. The data was better than expected as economists were looking for a 0.7% increase.