FX.co ★ Gold Dips Ahead of US PCE Data

Gold prices dipped to approximately $3,740 per ounce on Friday, influenced by an ascending US dollar, which advanced following stronger-than-anticipated economic data. This data has led to reduced expectations for an imminent Federal Reserve interest rate cut. Last week saw a decline in new unemployment benefit applications, and the economy demonstrated stronger-than-expected growth in the second quarter, buoyed by robust consumer spending and business investment. Consequently, market predictions for a rate cut next month have decreased from 90% to 85% following the release of the jobs data. Attention is now directed towards the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation measure, which will provide further insights into policy direction. Simultaneously, gold's appeal as a safe-haven asset was bolstered by renewed tariff threats. President Donald Trump announced intentions to implement tariffs beginning October 1, including a 100% tariff on imported branded drugs, 25% on heavy-duty trucks, 50% on kitchen cabinets, and 30% on upholstered furniture.