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Investing.com – My favorite gauge of inflation has now released data, which should give us an insight into pricing trends ahead.
Over the past few hours, the markets remained calm and without sudden or strong movements in anticipation of the data. However, immediately after its release, gold exceeded $2,000 an ounce, coinciding with the rise of the dollar as well, in a scene that does not happen often.
The data just released indicates the success of the Fed’s policy in reducing inflation, as the rates were lower than expectations, which indicates a decline in prices as desired by the Fed, but of course it is still far from the 2% target. The question remains, are we witnessing a shift or a decrease in the interest pricing period? Or will the Fed continue its strict policy until the target is reached? The answer is left to the upcoming data and the developments of the banking crisis.
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Personal consumption expenditure data
The annualized index recorded an increase of 4.6%, while experts expected it to rise by 4.7%, while it recorded 4.7% in the previous reading. The Fed aims to drop this number to 2% only.
On a monthly basis, the index rose to 0.3%, after recording 0.5% last month, while experts expected a 0.4% rise.
As for the main index, on an annual basis, it increased by 5%, and it had recorded, in the last reading, an increase of 5.3%. And on the basis of a record of 0.3%, less than expectations that expected it to rise by 0.5%.
Gold and the dollar now
It rose by 0.2% at $1,985 an ounce.
While US gold futures rose 0.3% to 2004 dollars.
It rose by 0.15%, to record 101.96 points.
