Materials Up After PCE Data — Materials Roundup
Producers of metals and other raw materials rose after muted inflation data.
The personal consumption expenditure index rose 0.1% in August, below economists' expectations. That suggested the Federal Reserve will have a freer hand cutting interest rates, which in turn weighed on the U.S. dollar and buoyed prices of dollar-denominated commodities. Gold futures, for example, rose for seven straight sessions before declining on Friday, and closed above $2650 an ounce.
Preliminary data indicated front-month gold futures rose 14% in the third quarter, the largest quarterly gain for gold on record.
"The start of Fed easing also has broader implications across asset classes, adding to the supportive backdrop for equities, gold, and oil, while adding to headwinds for the U.S. dollar," said Solita Marcelli, chief investment officer, Americas at money manager UBS Global Wealth Management.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
September 27, 2024 17:36 ET (21:36 GMT)
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