XAUUSD

With a weak dollar and declining interest rate expectations, gold is trading near its peaks ahead of the critical PCE data after a strong rally throughout the week. If the Fed's preferred inflation indicator comes in line with expectations, it will further pressure real interest rate expectations, increasing the appeal of gold, a non-yielding asset, and triggering the continuation of the upward trend. Conversely, a surprisingly high PCE data could revive bond yields and the dollar, creating sudden selling pressure on gold and potentially leading to a reversal of some weekly gains.