Gold Set for Range-Bound Week as Investors Await Core PCE Data; $4,000 Test at Risk if Inflation Hot

According to Stephen Innes, managing partner at SPI Asset Management, gold is expected to trade sideways next week as investors await the U.S. core personal consumption expenditures (PCE) inflation data for clues on the Federal Reserve's interest rate path. Innes stated that with the Fed increasingly data-sensitive, the upcoming core PCE release will be a key event for gold and rate markets, making next week highly data-dependent.

If inflation readings exceed expectations, the move could boost the U.S. dollar, push Treasury yields higher, and increase the risk of gold testing the $4,000 per ounce level. Investors should prepare for heightened volatility and watch for potential further downside pressure.