Gold and Silver Prices Drop as PCE Stays Flat in April

Money Bizwiz Team
2 Min Read

The latest data from the US Bureau of Economic Analysis, released on May 31, shows that the Personal Consumption Expenditures (PCE) price index remained stable in April. Both monthly and yearly PCE figures matched the increases seen in March, indicating a steady trend.

Core PCE, which excludes volatile food and energy prices, saw a slight dip in monthly growth but remained consistent with the previous month’s year-over-year gain. Personal income and disposable income both cooled off slightly in April compared to March.

The overall Real PCE saw a decrease in April, primarily due to a drop in spending on goods offset by an increase in spending on services. This slower growth in core PCE aligns with analysts’ expectations for the year so far.

The PCE index is closely watched by the US Federal Reserve for its impact on future interest rate decisions. The general consensus is that the central bank will hold off on any rate cuts until at least September.

Following the PCE news, the gold price experienced a spike in morning trading before settling back towards its opening value. Silver followed a similar pattern, with both metals expected to end the week lower than they started.

In the stock market, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all opened with gains before retreating. Overall, the economic indicators suggest a cautious approach to financial markets in the coming months.

For real-time updates on the latest economic news and trends, follow us on Twitter at @INN_Resource.

Please note that I, Dean Belder, do not hold any direct investment interest in the companies mentioned in this article.

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