🔵 What is the PCE Index and how does it affect the markets?

⬅️The Personal Consumption Expenditures (PCE) Index is the most important measure of inflation monitored by the Federal Reserve. It measures changes in the prices of goods and services purchased by consumers.

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🔷How does it affect the markets?

Gold:

🔼 If the PCE comes in low → the chances of interest rate cuts increase → gold rises

🔽 If it comes in high → expectations of tightening

policy increase → gold falls

🔷Dollar:

High strengthens the dollar

Low weakens it

🔷Stocks:

Low supports the rise of stocks

High puts pressure on them

🔷Currencies:

High = strength for the dollar

Low = support for the euro, yen, and others