Gold ended the session in decline!Gold prices continued to decline today, dropping by $16 to $2,327 per ounce, closing out the trading session for the week.
During the final trading session of this week, the gold market received the much-anticipated report on the Personal Consumption Expenditures (PCE) Price Index. Despite inflation rising in line with expectations, which increased the likelihood that the Federal Reserve (Fed) might cut interest rates this year, gold prices still fell.
The retreat in gold prices following a modest increase after the PCE report indicates a short-term exhaustion of this precious metal after a notable recovery earlier this year.
Although gold is currently weighed down by the Fed's aggressive interest rate stance, forecasts suggest that gold prices may rise further in the second half of 2024. Strong support for gold comes from the increasing demand from central banks in East and Central Asia, as well as safe-haven demand due to growing concerns about economic instability.