Gold Prices Stay Strong as U.S. Inflation Rises by 2.8% Over the Past Year

Gold prices remain close to record highs because of increasing inflation in the U.S. The Personal Consumption Expenditures (PCE) index, which measures how much consumers spend and reflects inflation levels, rose by 2.8% over the last 12 months. Core PCE, which removes food and energy costs for a clearer inflation picture, also increased by 2.8%.

This increase in inflation could affect the Federal Reserve's decisions on interest rates. If inflation stays high, the Fed may delay cutting interest rates, which tends to support higher gold prices since lower rates reduce the opportunity cost of holding gold. Strong economic growth and stable employment numbers also add pressure on the Fed to maintain higher interest rates.

The gold market is responding positively to this inflation data, with gold prices staying near their highest levels ever. The outlook for gold remains strong as investors look to it as a hedge against inflation and economic uncertainty.