🔹 Core PCE (YoY): 3% (Expectation: 2.9% | Previous: 2.8%)
🔹 GDP: 1.4% (Expectation: 2.8% | Previous: 4.4%)
From a market perspective, the picture is clear:
Inflation came in higher than expected.
Growth has slowed sharply.
What does this mean?
The economy is cooling, but price pressures are not easing.
In other words: slowing growth + sticky inflation.
This is a challenging scenario for the Fed.
• Rate cut expectations may be pushed back.
• Treasury yields could face upward pressure.
• The dollar may strengthen.
• Risk assets (crypto, equities) could see short-term selling pressure.
What about gold and silver?
The initial reaction usually centers on interest rates.
If Treasury yields and the dollar rise after the data: Gold and silver could face short-term pressure.
However, the sharp slowdown in growth also signals something important:
The economy is becoming fragile.
At this point, there are two main scenarios:
1️⃣ If the Fed focuses on inflation → rates stay higher for longer → precious metals may remain under pressure.
2️⃣ If recession risks start to dominate → safe-haven demand increases → gold could strengthen.
Silver is a bit more complex:
It is both a precious metal and an industrial metal, so during periods of slowing growth, it may be more volatile than gold.