01.07.202212:08 Forex Analysis & Reviews: Gold price outlook

Yesterday's report showed that there is little relief from rising inflation, which continues to soar at a record pace. The Federal Reserve's inflation report and personal consumption expenditure price index were released yesterday. According to the PCE, year-on-year inflation stood at 6.3% in May, in line with the inflationary pressure in April.The PCE rose by 0.6% in May following an increase of 0.2% in April. However, the core PCE price index posted its weakest growth since November 2021. According to the report, on an annualized basis, the core PCE dipped to 4.7% in May, down slightly from 4.9% in April.The initial reaction to yesterday's inflation report caused a bullish market sentiment for gold. The report was expected to reduce the size of the next rate hike at the July FOMC meeting. However, such optimism was short-lived, because an hour and forty-five minutes later, gold was down to $1805.10. It is now continuing to fall.