Gold prices are expected to remain range-bound next week as investors focus on the upcoming U.S. core Personal Consumption Expenditures (PCE) price index release. This data is anticipated to provide insights into the Federal Reserve's future interest rate decisions. Stephen Innes, managing partner at SPI Asset Management, emphasized the significance of the core PCE, stating it will be a pivotal event for gold and rates markets.
Innes warned that a stronger-than-expected inflation reading could strengthen the dollar and push yields higher, potentially leading to increased volatility in gold prices. Investors should be cautious of potential sell-offs, especially if gold tests the $4,000-per-ounce level.
Gold Prices to Remain Range-Bound Amid Key U.S. Inflation Data Release
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