Gold price holding above $1,800 as Fed’s preferred inflation measure core PCE jumps 4.7%

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(Kitco News) – The gold market continues to hold steady gains above $1,800 an ounce as inflation pressures continue to rise.

On a monthly basis, the core PCE price index was up 0.5% last month, the U.S. Department of Commerce said on Thursday. The inflation data was hotter than expected as consensus forecasts were calling for a 0.4% rise.

On an annual basis, core PCE jumped 4.7%, up from last month’s reading at 4.2%.

The core inflation strips out volatile food and energy prices and is the U.S. central bank’s preferred inflation measure.

The gold market has been able to hold critical gains above $1,800 through what has been a busy morning for economic data. December gold futures last traded at $1,810.80 an ounce, up 0.48% on the day.

The report said that headline inflation rose 0.6%, in November, down following October’s rise of 0.7%. Economists note that lower energy prices last month help to contribute to the month-over-month drop.

Annually, headline inflation rose 5.7%, up sharply from the previous reading at 5.1%.

According to some analysts, rising price pressures could be taking its toll on consumers. The report said that personal spending increased 0.6%, in line with consensus forecasts. At the same time, person income increased 0.4% also in line with expectations.

“These numbers are generally in-line with expectations but there are signs here that the consumer is having a hard time keeping up with inflation,” said Adam Button, chief currency strategist at

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Read More: Gold price holding above $1,800 as Fed’s preferred inflation measure core PCE jumps 4.7%

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