Gold staged a decisive rebound from two-month lows on May 29, climbing back above $4,500 per ounce as April PCE inflation data landed broadly in line with expectations. The spot price hit $4,539, marking the sharpest single-session recovery since early May, according to USAGOLD. The rebound came after gold had sold off heavily earlier in the week on concerns that persistent inflation would force the Fed to tighten further.
The April PCE price index rose 0.4% month-on-month and 3.8% year-on-year, the fastest annual rise in three years. Core PCE (excluding food and energy) rose 0.2% monthly and 3.3% annually — matching consensus estimates. 'The in-line reading eased fears of an accelerated Federal Reserve tightening cycle and drew physical buyers back into the market,' USAGOLD noted. Markets now expect the Fed to hold rates in the 3.50-3.75% range into 2027.
Despite the rebound, gold is still down ~1.8% over the past month and well off the January all-time high of $5,597. The Iran war-driven oil price surge has pushed US inflation higher, strengthening expectations for prolonged restrictive monetary policy — a headwind for gold. However, central bank buying (244 tonnes in Q1 alone) and continued geopolitical risk provide a structural floor above $4,000.