【Market Evening】 Gold awaits heavy PCE data! The outlook for crude oil and gold is bright.
The United States will announce personal income and expenditures and the PCE price index in April. As the Fed’s preferred inflation indicator, the PCE price index will be highly concerned by investors. If the data exceeds expectations, market conditions may change.

Market focus tonight
Gold price fell below $1890
In the late Asian market, spot gold fell rapidly in the short-term, and gold price just fell below $1,890 per ounce.
Gold and silver investors focus on the market outlook. The April US core PCE price index to be announced in the day and the upcoming budget of US President Biden will also become the focus of the market, which is expected to affect market sentiment.
The U.S. inflation data is likely to be bullish for the U.S. dollar, but the U.S. budget is stronger than expected and may weigh on the U.S. dollar. Unless there are negative surprises, the price of gold is expected to encounter resistance and market sentiment will be boosted.
U.S. oil rose for five consecutive days to close at a two-year high
As of press time, U.S. WTI crude oil July futures closed up 64 cents, or 0.96%, to $66.85 per barrel, the fifth consecutive day of gains and the longest one-day gain since February this year; Brent 7 Monthly crude oil futures closed up 59 cents, or 0.85%, to $69.46 per barrel.
Goldman Sachs analysts said that commodities will continue to face increasing supply tensions in the second half of the year, and there is little evidence that supply problems are sufficient to disrupt the bull market.
Bart Melek, Head of Commodity Strategy at TD Securities, said: "The optimism about demand overwhelms concerns about Iran, so Iran’s supply risks are currently on hold. The United States is the largest consumer country, and as more regions of this country reopen , The performance of oil prices during the driving season may be quite good."
Individual developments in major European stock markets
The Hong Kong stock market rose in early trading, but it gave up gains and turned down in the afternoon. The Hang Seng Index fell 0.06% to 29096.18 points, up 2.34% for the week.
The London FTSE Index closed at 7029 points, down 21 points, or 0.31%. The Frankfurt DAX index reported 15,465 points, an increase of 27 points, an increase of 0.18%. The Paris CAC index reported 6390 points, down 18 points, or 0.28%.
The Hang Seng Index fell 0.06% to 29096.18 points, up 2.34% for the week.
PCE index will influence the dollar
In the European market in early trading, the US dollar index rose moderately and is now at around 90.10. Major currencies such as the euro and the pound fell under pressure.
The core PCE price index is expected to increase at an annual rate of 2.9% in April, which is higher than the 1.8% increase in the previous month. If it meets expectations, this will be the strongest growth since 1992.
The core PCE price index annual rate is the Fed’s most preferred inflation indicator, which has a significant impact on interest rates. If this report meets or exceeds expectations, it may exacerbate people’s concerns about inflation and speculation about the Fed’s early action.
Analysts pointed out that if the US PCE data is stronger than expected, the US dollar index may rise further, which will weaken other major currencies.
Follow tonight:
20:30 U.S. Personal Consumption Expenditure Price Index Annual Rate (April)
U.S. core PCE price index annual rate (April)
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