GOLD (May 27) The Feds quagmire back as PCE rises in April

Yesterday, BLS (Bureau of Labor Statistics) released the latest data on inflation, the Personal Consumption Expenditures (PCE) price index for April 2023. Inflation rose by 0.4% from the previous month, and increased by 4.7% compared to the same time last year.
The key takeaway from today's PCE report is that inflation remains stagnant in the US economy and hasn't reduced consumer spending. On the contrary, consumer spending increased by 0.8% in April while personal income only increased by 0.4%. This reinforces the assumption that interest rates will continue to rise for a longer period.

The Federal Reserve is currently in a difficult and complicated situation, commonly referred to as a swamp. Their focus has been on reducing inflation to a target of 2%, which many consider unrealistic and difficult to achieve. However, recent actions by the Federal Reserve have resulted in a two-step decrease in inflation.

Despite recent claims by Chairman Powell that their actions have had a strong impact and led to consumer spending restrictions, limiting borrowing and narrowing economic growth to an acceptable level is not entirely true.
Investors in the gold trading market seem surprised by today's news of higher inflation and interest rates, causing a mixed message. Despite a slight increase of $2.40 in future gold prices after a $40 drop on Wednesday and Thursday, as of 6 pm EDT, the price is fixed at $1,946 with only a 0.12% decrease, which is not significant compared to the weekly drop.