US Q1 GDP Misses Forecast at 0.5% and PCE index remain same , Boosting Gold as Dollar Weakens

The latest Core PCE Price Index for March rose 0.4% month-over-month, matching both the forecast and February’s reading. The steady inflation metric suggests consumer prices are rising at a moderate pace, providing signals for the Federal Reserve’s future policy decisions.

Final GDP Growth Slows

US GDP growth for Q1 2026 came in at 0.5% quarter-over-quarter, below the 0.7% forecast and prior quarter. The slowdown indicates softer economic momentum, placing pressure on the US dollar.

A weaker than expected GDP combined with stable inflation tends to boost safe haven demand. Gold prices often rise when the dollar loses momentum, as investors seek alternatives amid slower economic growth. Analysts note that continued economic softness could sustain support for gold in the near term.

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