Gold Price Slips Below $3,300 as Traders Await US PCE Inflation Data

Gold Price Slips Below $3,300 as Traders Await US PCE Inflation Data

The price of gold (XAU/USD) continues to decline during Friday’s European trading, falling to a new monthly low in the $3,282–3,283 region. This drop marks one of the steepest weekly losses in recent weeks, with the metal currently struggling to find support despite a weaker US Dollar (USD) and heightened speculation about upcoming Federal Reserve (Fed) rate cuts.

Why Is Gold Falling?

The pullback in gold comes amid:

• A ceasefire between Israel and Iran, which reduces geopolitical tensions and dampens safe-haven demand.
• Profit-taking and position adjustment by traders ahead of today’s high-impact US PCE Price Index release.
• Broader risk-on sentiment that keeps investors focused on equities rather than defensive assets like gold.

Despite Fed rate cut hopes and USD’s multi-year lows, gold has failed to capitalize, reflecting the strength of the broader risk rally.

Focus Shifts to US PCE Data

The upcoming US Personal Consumption Expenditures (PCE) Price Index is expected to offer insights into the Fed’s potential next move. As the Fed’s preferred inflation measure, it will influence:

• Market expectations of interest rate cuts
• US Dollar movement
• Gold’s short-term direction

A lower-than-expected PCE print could revive gold’s appeal, while a hotter number may lead to extended losses.

Fed Independence Concerns Linger

Meanwhile, the political pressure on the Fed remains a market concern. Recent comments from President Trump about replacing Chair Jerome Powell have renewed fears about central bank independence, which may keep the USD subdued but haven’t been enough to support XAU/USD.

Technical Outlook: XAU/USD

• Support: $3,280, $3,265
• Resistance: $3,300, $3,320
• Trend: Bearish below $3,300, with potential for deeper pullback if PCE surprises to the upside

Also Read: Live XAU/USD Forecasts and Real-Time Charts