Bitget CFD Analyst Warns: PCE Data Could Trigger Gold Downside Risk if Inflation Hits 3.4% or Higher

XAU-1.45%
According to Bitget CFD Chief Analyst Lewis Huang, the May PCE price index will become a key policy indicator for the Federal Reserve this week. Huang pointed out that due to geopolitical conflicts pushing up energy prices, the year-over-year Personal Consumption Expenditures (PCE) inflation rate could climb to 3.4% or higher. If PCE inflation exceeds expectations, the U.S. dollar index will gain strong momentum, while gold and other non-yielding assets face downside risks, Huang said. The analyst advised CFD traders to closely monitor inflation expectations and be prepared to capture dollar strength or defend against potential gold declines.
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