Svmuu News: Lewis Huang, Chief Analyst of CFDs at Bitget, pointed out during an online livestream titled “Analyzing the Logic Behind Gold’s Trends” that market focus this week will be on the U.S. May PCE Price Index and the final Q1 GDP figures.Following record-high CPI and PPI data and robust nonfarm payrolls, combined with signals of a resurgence in inflation andFederal Reserve’s hawkish stance, the market has gradually priced in expectations of interest rate hikes.He emphasized that Wash has clearly stated that curbing inflation is the top priority, and the dot plot indicates that rate hikes in 2026 are becoming the internal consensus; the market needs to prepare for a higher and longer-lasting interest rate environment.
Regarding gold’s performance, Lewis Huang noted that, driven by rising energy prices due to geopolitical conflicts, the year-over-year growth rate of the overall Personal Consumption Expenditures (PCE) Price Index could climb to 3.4% or even higher.If the Personal Consumption Expenditures (PCE) Price Index rises more than expected, the U.S. Dollar Index will gain strong momentum, while non-interest-bearing assets such as gold face the risk of weakening. CFD traders are advised to closely monitor inflation expectations and flexibly capitalize on opportunities to go long on the dollar or hedge against a decline in gold prices.