Gold Price vs US Inflation Data: Why Did Gold Rise After Cooler PCE Inflation Reading? Know the Impact on Indian Gold Market
Gold prices rose after cooler US inflation data reduced expectations of an October Fed rate hike. Know how the weaker dollar and inflation may impact Indian gold prices.
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Gold Price Today: the precious metal has no bound cap for its price. On Wednesday, when US inflation data was released, the gold prices surged. The rise in gold proves that cooler US inflation has given a hope of glitter to the metal.
The softer US inflation data has put a pause on the expectations of another Federal Reserve rate hike, coming up in October. With that, investors have turned their back to the safe-haven asset, as the situation is a little less tense.
Spot gold climbed 0.7% to $4,209.71 per ounce, while US gold futures gained 1.5% to $4,241.90 (9:05 am ET, 1305 GMT, 6:35 PM IST).
Another reason for the rise in gold prices globally is the weaker US dollar. This also helped gold in making the precious metal cheaper for buyers using other currencies.
The latest data shows how inflation, interest rates and the dollar continue to keep gold prices on their toes. For investors, the key question now is whether cooler inflation can give gold another boost.
Did Gold Price Fall After A Short Correction?
The Gold prices though gave relief to the investors in the opening but gradually by the end of the day fell on its myths low before the markets closed.
Gold had a rather disappointing Wednesday than a cheerful one, giving up their earlier gains despite cooler-than-expected US inflation data.
By the end of the day, the gold prices fell to 0.7% to $4,152.86 per ounce, all of this just after briefly rising.
According to gold market enthusiasts, the Federal Reserve may delay another round of interest rate hikes. This would offer gold some support.
Moving ahead from here, if energy prices stay high for long, the spotlight will be gone from gold.
As September ended its market love yesterday, gold headed for a 6.6% monthly decline, making the metal’s recent rally look increasingly fragile.
US PCE Inflation Data: What Happened?
The US PCE inflation report gave some relieve to the inventors for a while. some cooling in price pressures in August. This reduced expectations of an immediate Federal Reserve rate hike and supported gold prices.
| PCE Inflation Data | August 2026 | July 2026 (Revised) |
| Monthly PCE inflation | 0.3% | 0.1% |
| Annual PCE inflation | 2.6% | 3.4% |
| Annual Core PCE inflation | 3.0% | 3.0% |
| Core PCE | Excludes food & energy | — |
Aishwarya Samant is a journalist with over 4 years of experience navigating the fast-paced corporate media landscape. She specializes in decoding business news, world economy, personal finance, and stock market trends, often adding a subtle touch of political perspective to keep things interesting.
Having worked with reputed organizations like ZEE, TV9, News24, and NewsX, she is no stranger to the newsroom hustle and the demands of real-time storytelling. Her writing style is fast-paced, engaging, and crafted to connect seamlessly with diverse audiences across platforms. She approaches every story from the reader’s point of view, breaking down complex topics into clear, relatable narratives backed by solid facts and credible sources. While she’s confident in expressing strong viewpoints, she ensures balance with insights. Sharp, fact-driven content that informs, engages, and keeps readers coming back for more.
