Gold may face another severe test as the inflation indicator favored by the Federal Reserve is released this week

Golden Finance reports that the core PCE data to be released on Thursday, June 22, may show that the Fed's preferred inflation indicator accelerated both month-on-month and year-on-year in May. If so, this would further support the view that policymakers need to tighten policy, which could push up the dollar and U.S. Treasury yields. For gold, this would be an unfavorable environment. Gold has recently underperformed, declining for three consecutive weeks. In the approaching end of this quarter, spot prices have fallen about 10%, likely marking the worst performance in nearly a decade.
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