DXY rises nearly 10 points to 99.03 as gold drops $11

The U.S. dollar index, or DXY, rose nearly 10 points in a short-term move to 99.03 on Gate data, while spot gold fell $11 to $4,619 an ounce. U.S. July personal consumption expenditures inflation rose 3.7% year over year, above the 3.6% forecast and the Federal Reserve’s 2% target, after increasing 0.2% month over month. Reports differed on annual core PCE, which excludes food and energy, citing either 3.3% or 4.2%, with both figures described as unchanged from June; both accounts reported a 0.2% monthly increase. Separately, July headline consumer-price inflation was reported at 3.4% year over year, while energy prices rose 14.7% annually despite edging down month over month, keeping pressure on household budgets. The firmer inflation data may support a higher-for-longer Fed stance. The Fed held rates steady in late July for a fifth consecutive meeting in a split decision, with three officials favoring a quarter-point increase, while traders priced about a 60% chance of another hold in mid-September. Prediction markets assigned crude oil a 1.8% probability of reaching a new all-time high by September 30 and an 11.5% probability by December 31, with OPEC decisions, geopolitics, demand, Middle East developments and U.S. energy policy among the factors being monitored.

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