Today\u2019s PCE data<\/a>\u2014expected to show a 0.4% monthly rise in core inflation\u2014may not fully capture the inflation that\u2019s still to come. That gives gold added momentum as inflation hedging picks up. Core inflation is forecast to edge higher to 2.7% year-over-year, reinforcing the Fed\u2019s cautious stance and reducing the likelihood of near-term rate cuts.<\/p>\nFed Policy Uncertainty Adds Fuel to Bullish Gold Setup<\/h2>\n Gold thrives in periods of policy uncertainty and weakening growth expectations. Business investment and hiring have reportedly slowed under current U.S. policy conditions. Richmond Fed\u2019s Thomas Barkin compared the environment to driving with \u201czero visibility,\u201d and consumer sentiment is falling as inflation fears rise.<\/p>\n
Despite the current \u201cmoderately restrictive\u201d stance from the Fed, traders see little reason for immediate easing, especially with February\u2019s data lagging behind recent developments. That puts real rates and inflation expectations squarely in focus for gold.<\/p>\n
Gold Prices Projections: Bullish Bias Intact Above $3,000<\/h2>\n [ad_2]<\/p>\n","protected":false},"excerpt":{"rendered":"
[ad_1] At 09:21 GMT, XAU\/USD is trading $3072.16, up $15.55 or +0.51%. Tariffs and Inflation Expectations Push Gold Above $3,000 The broader market is beginning to price in the inflationary impact of tariffs. Fed officials are divided on the effect\u2014Boston Fed President Susan Collins expects a short-term inflation spike, while St. Louis Fed\u2019s Alberto Musalem warns it may persist. His team estimates the tariffs could add over 1 percentage point to inflation. Today\u2019s PCE data\u2014expected to show a 0.4% monthly rise in core inflation\u2014may not fully capture the inflation that\u2019s still to come. That gives gold added momentum as inflation hedging picks up. Core inflation is forecast to edge higher to 2.7% year-over-year, reinforcing the Fed\u2019s cautious stance and reducing the likelihood of near-term rate cuts. Fed Policy Uncertainty Adds Fuel to Bullish Gold Setup Gold thrives in periods of policy uncertainty and weakening growth expectations. Business investment and hiring have reportedly slowed under current U.S. policy conditions. Richmond Fed\u2019s Thomas Barkin compared the environment to driving with \u201czero visibility,\u201d and consumer sentiment is falling as inflation fears rise. Despite the current \u201cmoderately restrictive\u201d stance from the Fed, traders see little reason for immediate easing, especially with February\u2019s data lagging behind recent developments. That puts real rates and inflation expectations squarely in focus for gold. Gold Prices Projections: Bullish Bias Intact Above $3,000 [ad_2]<\/p>\n","protected":false},"author":1,"featured_media":40627,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-40626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financas"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t