Gold Faces Selling Pressure Ahead Of PCE And Tariffs Due Later This Week
Gold (XAU/USD) price is pulling back from its recent record high, currently standing at $2,800.93, with profit-taking still ongoing. On the geopolitical front, markets were shaken by comments from US President Donald Trump confirming 25% tariffs will be imposed on Canada and Mexico, two of the US’s largest trading partners, starting Saturday, and threatening to impose 100% tariffs on BRICS countries if they try to replace the US Dollar with a new currency in international trade. This should be a headwind for Gold Bullion as it could lead to trade wars and inflation fears with prices spiking for US consumers and producers.
On the economic data front, inflation will be in the spotlight, with the release of the US Personal Consumption Expenditures (PCE) Price Index for December, the Federal Reserve’s preferred inflation gauge, due later today. Overall, the figures are expected to remain steady or edge higher.
Source: FXStreet