Bitget CFD Chief Analyst: PCE Data Will Be a Key Indicator for Fed Policy, Beware of Gold Downside Risk

Odaily Planet Daily News: Lewis Huang, Chief Analyst at Bitget CFD, pointed out during an online livestream titled "Logic of Gold Trend Analysis" that the market focus this week will be on the US May PCE price index and the final Q1 GDP data. Following the recent highs in CPI and PPI data and solid non-farm payroll performance, coupled with signs of rebounding inflation and the Fed's hawkish stance, the market has gradually priced in expectations of interest rate hikes. He emphasized that (Fed Governor) Waller has clearly stated that curbing inflation is the top priority, and the dot plot indicates that rate hikes in 2026 are becoming an internal consensus; the market needs to prepare for a higher-for-longer interest rate environment.

Regarding the trend of gold, Lewis Huang stated that due to geopolitical conflicts pushing up energy prices, the year-on-year growth rate of the overall Personal Consumption Expenditures (PCE) price index may rise to 3.4% or even higher. If the PCE data exceeds expectations, the US Dollar Index will gain strong upward momentum, while non-yielding assets such as gold will face downside risks. He advises CFD traders to closely monitor inflation expectation gaps and flexibly capture opportunities in the US dollar long position or guard against gold downside risks.