The PCE data led to an intraday rise in the US dollar Gold prices hit a new month high

On Thursday (February 29), the US dollar index maintained a volatile downward trend in the Asian and European markets. With the release of the annual rate of the US core PCE price index in January, which recorded the lowest growth since March 2021, the US dollar index plummeted significantly. However, a monthly rate of 0.4% brought hawkish expectations, and the US dollar index rebounded around 103.65 and reached a new high for the day, ultimately closing up 0.191% at 104.14. The benchmark 10-year US Treasury yield fluctuated upwards during the Asian and European markets, but experienced a high level “diving” due to the influence of PCE data, closing at 4.254%. The yield of the most sensitive 2-year US Treasury to the Federal Reserve's policy rate closed at 4.623%.

Gold prices hit a one month high of 2050.59 on Thursday (February 29), closing at 2043.99. US inflation data met expectations, and the number of initial jobless claims in the US slightly increased, providing momentum for gold prices last week. Traders turned their attention to further comments from Federal Reserve officials in search of clues to interest rate cuts.

On Thursday (February 29th), US inflation data suggested that the world's largest economy was weak, which could weaken crude oil demand. The increase in OPEC production also weighed on oil prices, causing them to rise again and fall back on the last trading day of February.