Bitget CFD Chief Analyst: PCE Data Will Be a Fed Policy Indicator, Watch Out for Gold Downside Risk
Odaily reported that Bitget CFD Chief Analyst Lewis Huang, in an online livestream titled "Gold Trend Logic Breakdown," indicated that this week, the market focus will be on the US May PCE Price Index and Q1 GDP final figures. Previously, CPI and PPI data reached new highs, non-farm employment performed strongly, and inflation rebound signals combined with the Federal Reserve's hawkish stance have led the market to gradually price in rate hike expectations. He emphasized that Waller has clearly stated that suppressing inflation is the top priority, and the dot plot shows that rate hikes in 2026 are becoming an internal consensus. The market needs to be prepared for a higher and longer-lasting interest rate environment.
Regarding gold's movement, Lewis Huang stated that, due to geopolitical conflicts driving up energy prices, the overall Personal Consumption Expenditures (PCE) price index annual growth rate may climb to 3.4% or even higher. If the Personal Consumption Expenditures (PCE) index rises above expectations, the US dollar index will gain strong momentum, and non-interest-bearing assets such as gold will face the risk of weakening. CFD traders are advised to closely watch the inflation expectation differences and flexibly seize opportunities for long US dollar trades, or guard against gold’s downside risks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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