US Dollar and Yields Rise on Steady PCE Inflation and Strong Consumer Spending

Key Facts

1The US dollar moved higher against most major currencies, supported by rising Treasury yields.

2US July core PCE came in at 3.3% year-over-year, matching market expectations.

3The US Treasury sold $70 billion of 5-year notes at a high yield of 4.393%.

4Gold prices fell 1.44% to $4,590.76 per ounce amid a stronger dollar and higher yields.

Reflecting the resilience of the US economy against high interest rates, the US dollar moved higher against most major currencies, supported by rising Treasury yields. Economic data showed the July core PCE price index held steady at 3.3% year-over-year, matching market expectations. Additionally, the US Treasury successfully auctioned $70 billion of 5-year notes at a high yield of 4.393%, further bolstering the greenback's position as demand for US debt remained firm.

Amid persistent inflationary pressures, gold prices retreated by 1.44% to $4,590.76 per ounce, weighed down by the stronger dollar and higher yields according to analyst reports. While second-quarter GDP growth remained unrevised at 1.5%, an upward revision in consumer spending to 3.4% highlighted robust domestic demand. In the currency markets, the Australian dollar was the sole gainer against the greenback, while the British pound and Swiss franc saw notable weakness per market data.

As of the close on August 26, 2026, traders are monitoring whether this dollar strength will persist given the current lack of updated real-time price levels in the database. Looking ahead, the economic calendar shows no major US catalysts scheduled for the next seven days, leaving the market to digest the recent inflation and employment figures which have reinforced the Federal Reserve's challenge in managing stubborn inflation.