Impact of Inflation and Interest Rate Dynamics Gold’s traditional appeal as a safe haven is currently under scrutiny, especially with looming concerns about the Federal Reserve’s possible stringent measures. Chicago Fed President Austan Goolsbee voiced concerns that inflation overshooting this target presents a more significant risk than potential economy-slowing policies by the central bank. Investors are now keenly awaiting the personal consumption expenditures (PCE) price index, slated for release on Friday, to understand the Federal Reserve’s potential interest rate trajectory better.