Bitget CFD Chief Analyst: PCE data will become the Fed's policy weather vane, be wary of the downside risks of gold

Comparative news. Today, Lewis Huang, chief analyst of Bitget CFD, pointed out in an online live broadcast on the theme “Gold Trend Disassembly Logic” that this week's market focus will target the US May PCE price index and the final GDP value for the first quarter.

Previously, CPI and PPI data were high, non-farm payrolls showed steady performance, and signs of a rebound in inflation compounded the Federal Reserve's hawkish stance, and the market has gradually digested expectations of interest rate hikes. He stressed that Walsh clearly stated that curbing inflation is a top priority. The interest rate bitmap shows that the 2026 rate hike is becoming an internal consensus, and the market needs to prepare for a higher and longer interest rate environment.

In response to the gold trend, Lewis Huang said that the overall personal consumption price index (PCE) growth rate may rise to 3.4% or more due to the impact of the geopolitical conflict driving up energy prices. If the personal consumption expenditure price index (PCE) rises above expectations, the US dollar index will gain strong momentum, while interest-free assets such as gold face the risk of weakening. CFD traders are advised to pay close attention to differences in inflation expectations and flexibly catch dollar bulls or prevent downside opportunities for gold.

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