GOLD FREE STRUCTUREChina Hong Kong gold vault hints at a geopolitical shift, as the Shanghai Gold Exchange's expansion, aims to enhance China's gold trading infrastructure and challenge Western dominance, potentially impacting demand and supply of physical gold need.
3380-3385 triggered but be cautious
buy zone 3250-3255 reacted and instant buy rejection on the descending trendline.
the Core PCE Price Index (month-over-month): rose by 0.2%, above the forecast of 0.1% and the previous 0.1% reading. This indicates a slight acceleration in the Federal Reserve’s preferred inflation gauge, with the annual core PCE inflation rising to about 2.7% year-over-year, above expectations of 2.6%.
Personal Income (month-over-month): declined by 0.4%, worse than the forecasted 0.3% increase and down from the previous 0.8% rise. This drop suggests a weakening in household income growth.
Market and Policy Implications:
The uptick in core PCE inflation signals that underlying price pressures remain somewhat persistent, complicating the Fed’s path toward its 2% inflation target.
The decline in personal income could weigh on consumer spending going forward, potentially slowing economic growth.
The US Dollar Index reacted by edging lower, reflecting market caution amid mixed inflation and income data.
Fed officials, including Chair Powell, have emphasized a cautious approach, suggesting no immediate rate cuts until inflation dynamics become clearer.
Summary:
Core inflation is ticking up slightly, reinforcing inflation concerns, while personal income weakness points to potential softening in consumer demand. This mixed data supports a Fed stance of patience, with markets pricing in a moderate chance of rate cuts later in 2025 but expecting continued vigilance.
stay cautious on #gold
