Loading article…
Gold prices approach $4,697, a 15-week high, as investors await US core PCE inflation data. See how the Fed’s preferred inflation gauge impacts the metal.
Gold prices are trading near 15-week highs of $4,697 per ounce in Asian markets on Wednesday, as investors reposition ahead of the release of the US core Personal Consumption Expenditures (PCE) Price Index [1]. The metal’s performance reflects a broader market shift, as traders weigh the potential for Federal Reserve policy adjustments against persistent inflation risks [2].
| At a glance | |
|---|---|
| Current Gold Price | $4,697 |
| 15-Week Trend | Near record highs |
| Core PCE Forecast (MoM) | 0.2% |
| Core PCE Forecast (YoY) | 3.2% |
The recent rally in gold, which saw the metal gain more than 5% last week, coincides with a weakening US Dollar and easing concerns over energy-driven inflation [2]. Optimism regarding the reopening of the Strait of Hormuz has contributed to a decline in oil prices, which in turn has tempered expectations for aggressive Federal Reserve interest rate hikes [2]. Additionally, the US Treasury’s decision to double its bond-buyback plan has provided further support for bullion prices [2].
Market participants are now focused on the core PCE Price Index, the Federal Reserve’s preferred measure of underlying inflation [2]. While annual core PCE is expected to hold steady at 3.2%, a monthly print of 0.2% is anticipated [2]. Analysts note that softer-than-expected inflation data could undermine the US Dollar and Treasury yields, potentially providing a further boost to non-yielding assets like gold [2]. Conversely, hotter-than-forecast prints could reinforce concerns over energy-led inflation, likely triggering a corrective move lower in gold prices [2].
Despite the bullish momentum, technical indicators suggest the market may be approaching a period of volatility. The Relative Strength Index (RSI) for gold currently sits at 71.45, placing the asset in overbought territory [2]. While the metal is trading above its 21-day, 50-day, 100-day, and 200-day simple moving averages, the overbought RSI signals that the current rally could be vulnerable to short-term mean-reversion [2]. Support levels remain anchored at the 200-day moving average near $4,522.84, which analysts view as a key threshold for maintaining the current uptrend [2].
Whether gold can sustain its climb toward the $4,700 threshold depends heavily on whether the upcoming inflation data confirms a cooling trend or forces the Federal Reserve to maintain a hawkish stance. The intersection of this week's economic data and the upcoming Jackson Hole symposium leaves the market in a state of high sensitivity to any shift in policy expectations.
Coverage is mostly measured — 275 of 288 reports stay neutral.
Every Monday — the token unlocks, Fed dates & catalysts set to move crypto and markets this week. So you’re never blindsided.
Free · 3-min read · one-click unsubscribe
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 3 outlets · Aug 26, 2026 · How we report
Gold prices declined due to hawkish comments from Fed Chair Kevin Warsh, which strengthened the US Dollar and increased US Treasury yields.
The Federal Reserve aims to achieve a 2% inflation goal.
The Fed adjusts interest rates; raising rates typically strengthens the US Dollar by making it a more attractive investment, while lowering rates can weigh on the currency.
Following recent comments, money markets priced in a 43% to 44% chance of a 25-basis-point rate hike in September.