The Core PCE price Index is the less volatile measure of the PCE price index which excludes the more volatile and seasonal food and energy prices. The impact on the currency may go both ways, a rise in inflation may lead to a rise in interest rates and a rise in local currency, on the other hand, during recession, a rise in inflation may lead to a deepened recession and therefore a fall in local currency.
Investors and traders closely monitor various economic indicators to gauge the future trajectory of this precious metal. Among these indicators, the Core Durable Goods Orders and Initial Jobless Claims Data hold significant importance. In this blog post, we will delve into the details of these economic factors and analyse their potential impact on the future of gold.
Initial Jobless Claims measures the number of individuals who filed for unemployment insurance for the first time during the past week. This is the earliest U.S. economic data, but the market impact varies from week to week.
1. Futures mixed after fourth-straight winning session
U.S. stock futures were mixed on Thursday, but hovered mostly around the flatline, after the main indices on Wall Street posted their fourth winning session in a row.
2. Jobless claims, PCE ahead
Traders will have the chance to parse through weekly initial claims for unemployment benefits as well the personal consumption expenditures (PCE) price index, the Fed’s preferred gauge of inflation, later today.
3. Salesforce raises guidance, UBS’s plans for Credit Suisse
Shares in Salesforce rose by more than 5% in premarket U.S. trading on Thursday after the software group increased its annual revenue outlook, citing strong demand for its cloud products.
Sales are now seen at between $34.7 billion to $34.8 billion in its current fiscal year, up from its prior prediction of $34.5 billion to $34.7 billion. The improved forecast added to hopes that Salesforce and other major cloud players could see a recent downturn in client spending begin to abate during the second half of 2023.
4. Chinese manufacturing activity slips
Manufacturing activity in China contracted for a fifth consecutive month in August, heaping further pressure on Beijing to do more to help reinvigorate the post-pandemic recovery of the world’s second-largest economy.
China was initially projected to bounce back strongly from draconian COVID-19 rules this year, but a string of disappointing economic figures have all but eradicated this optimism.
5. Oil volatile after Chinese data, U.S. inventories draw
Oil prices edged higher in choppy trading on Thursday, as traders digested the conflicting influences of disappointing business activity data from top crude importer China and a substantially bigger-than-expected draw in U.S. crude inventories.
The Energy Information Administration reported Wednesday that U.S. oil inventories shrank by 10.6 million barrels last week, well above the 3.3 million barrels expected, as refiners ramped up production before the Labor Day weekend that usually signals peak U.S. summer demand.
The Core Durable Goods Orders and Initial Jobless Claims Data & Core PCE Price Index are crucial economic indicators that can significantly impact the future of gold prices. As investors and traders keep a keen eye on these indicators, their interpretation and analysis play a vital role in shaping investment strategies. By keeping a close eye on the data and its impact on XAUUSD, traders and investors can gain valuable insights into market dynamics and make informed decisions.