The PCE index for June could influence interest rates and gold prices
The Personal Consumption Expenditures Price Index (PCE) — also known as the Federal Reserve’s preferred inflation gauge — for June is due out later this week. Investors will be eyeing the data for insight into the central bank’s timeline of interest rate decisions, with many still hoping for at least one rate cut this year. Some officials are hesitant, however, as inflation remains high.
Given the impact of interest rates on gold prices, which are already near record highs, now is a great time to check in with three key industry players: Barrick Gold Corp (NYSE:GOLD), Royal Gold Inc (NASDAQ:RGLD), and Newmont Corporation (NYSE:NEM).
GOLD is up 0.6% to trade at $16.70 at last check, after bouncing off long-term support at the $16 level. The security isn’t too far off from its April 12, 52-week high of $18.94, despite recent pressure at the $17 region. In the past nine months, the stock added 14.2%.
Last seen up 1.6% to trade at $125.10, RGLD is today testing a resistance at its 20-day moving average, which has been in place since late May. The $120 level contained the stock’s pullback from its May 21 52-week high of $134.56, after providing a floor back in March and April. Shares amassed a 11.1% lead in the last 12 months, but are close to breakeven in 2024.
NEM is down 1.2% to trade at $41.40 at last check. The security has been trading above the 20-day moving average — which is ready to contain today’s losses — since late March, after gapping to a Feb. 28, roughly six-year low of $29.43. NEM is flat for the year and in the last 12 months.