Bitget CFD Chief Analyst: PCE Data to Serve as Fed Policy Barometer; Beware of Downside Risks for Gold

TechFlow News, June 23: Today, Lewis Huang, Chief Analyst of Bitget CFD, stated during an online livestream titled “Deconstructing the Gold Trend Logic” that market attention this week will focus on the U.S. May PCE Price Index and the Q1 GDP final reading. Earlier CPI and PPI data hit new highs, while nonfarm payroll figures remained robust; combined with signs of rebounding inflation and the Federal Reserve’s hawkish stance, markets have gradually priced in rate hike expectations. He emphasized that Chair Powell has explicitly stated that curbing inflation remains the top priority, and the dot plot indicates that rate hikes in 2026 are becoming an internal consensus—markets must prepare for a higher-for-longer interest rate environment.

Regarding gold price movements, Lewis Huang noted that geopolitical conflicts have pushed up energy prices, potentially driving the annual growth rate of the Personal Consumption Expenditures (PCE) Price Index to 3.4% or even higher. Should the PCE Price Index rise more than expected, the U.S. Dollar Index would gain strong momentum, while interest-free assets like gold would face increased downside risk. CFD traders are advised to closely monitor inflation expectation differentials and flexibly seize opportunities to go long on the dollar or hedge against gold’s potential decline.