Gold rolls over after hitting temporary high

Gold pumped after the release of marginally lower-than-expected US core Personal Consumption Expenditures (PCE) data on Friday, the Federal Reserve’s (Fed) preferred gauge of inflation. Core PCE came out at 0.2% month-over-month in April instead of 0.3% forecast. The data lifted the precious metal temporarily to a peak of $2,359, however, it promptly tumbled back down. 

The lower inflation data recalibrated expectations of when the Fed will cut interest rates, increasing the probability of a September cut to 55% from around 50% previously. This is positive for Gold, which as a non yielding asset tends to appreciate when interest rates fall. That said, Gold investors remain cautious about the trajectory of interest rates amid still-high inflation and a Fed that is still hazy about its intentions.