GLD rises 0.32% to $384.11 in pre-market trading after PCE data
GLD rose 0.32% to $384.11 a share before Wall Street opened, extending a bounce that began a day earlier on weak jobs and confidence data
Published
The move builds on a rebound that started a day earlier. Spot gold rose 1.39% on Tuesday to settle at $4,184.97 an ounce, according to Rio Times Online, after US job openings and consumer confidence data came in below forecasts. That followed a 3.12% drop on Monday and a close of $4,288.69 an ounce the previous Friday, when gold had fallen 2.1% over the week, Ad-Hoc News reported. Ahead of Wednesday's release, the Cleveland Fed's nowcast had pointed to headline inflation of roughly 3.8% and core inflation of about 3.4% for August, Nordfx reported.
Gold's reaction to the data points to how closely the metal is tracking expectations for the pace of Fed easing rather than acting as a safe haven. A price move that reads as supportive of continued rate cuts lowers the opportunity cost of holding an asset that pays no yield and tends to weigh on the dollar, both of which help explain gold's climb back toward record territory above $4,200 an ounce.
That sensitivity means the rally's next leg depends on data still to come. If inflation readings keep softening, real yields could drift lower still, a dynamic that matters for anyone positioning around the broader path of interest rates, whether or not this particular advance holds once regular trading begins.