What You Need to Know:

• The U.S. Core PCE inflation increased by 0.2% in May, surpassing the anticipated 0.1%.
• In early U.S. trading, the Nasdaq 100 set a new record, while gold fell 2% and remained 7% below its peak; Bitcoin saw a slight decline to $106,700.

Bitcoin continues to stabilize within the $102,000 to $108,000 range, with gold experiencing a 2% drop and approximately 7% lower from its all-time high. Conversely, the Nasdaq 100 has recorded new highs.

Some macroeconomic indicators indicating a negative tilt for BTC and gold include personal income figures from May, reported at -0.4%, which is below the expected rise of 0.3%. Additionally, personal spending for that month was at -0.1%, falling short of the 0.1% increase that was predicted.

The core PCE price index in the U.S., which excludes volatile items like food and energy and is favored by the Federal Reserve, registered a 0.2% growth in May compared to an expected 0.1% rise. Year on year, core PCE prices showed a 2.7% increase against a forecasted 2.6%.

This data reinforces concerns that the economy may be trending towards stagflation.

Peter Schiff, a notable investor, remarked: “Traders continue to sell gold as this morning’s release of weak economic data and stronger-than-expected inflation pushed the dollar index to new lows. Stagflation and a declining dollar are favorable for gold, independent of any superficial trade arrangements ‘brokered’ by Trump.”

For more insights, keep track of the latest market developments in Bitcoin, gold, and broader economic trends.