Futures rise after US PCE inflation indicator slows down
US core PCE slowed down in February
Gold rises near $1950 per ounce.
The US dollar is declining after mixed economic data
The Consumer Spending Index has been increasing by 4.6% annually
The core Personal Consumption Expenditures (PCE) index slowed to 4.6% from 4.7%, while the headline index slowed to 5.0% from 5.3%, more than expected. Slower growth in the inflation gauge followed by the Federal Reserve helped increase market expectations for the Fed to begin easing monetary tightening in the coming period.
On the other hand, the index for personal consumption expenditures excluding food and energy rose by 0.3% monthly. The data put further pressure on the US dollar, with the dollar index falling by 0.45% near 102.17.
The decline in the US dollar supported the recovery of many other major currencies, with the EUR/USD rising to $1.0880, while the GBP/USD rose to $1.24.
Gold higher after USD decline
Gold shot higher during today's trading, rising to levels of $1950 per ounce. This comes at a time when gold is approaching two consecutive quarters of gains.
Demand for the yellow metal increased throughout the first quarter of the year with concerns about the banking sector turmoil and rising market anticipation for the Fed to begin easing monetary tightening in the coming period, which could support dollar-denominated assets such as gold.
US stock futures continue rising
Futures for the S&P 500 index rose slightly on Friday, but the index suffered strong volatility during the first quarter of the year with concerns about the Federal Reserve's continued interest rate hikes and fears of a banking sector collapse.
Stock markets witnessed significant gains pre-market after the Fed's preferred inflation gauge showed a smaller-than-expected increase in prices. The S&P 500 and Nasdaq Composite indexes rose by 5.5% and 14.8%, respectively, for the first quarter until Thursday's close. The Dow Jones index fell slightly.