With core PCE inflation increasing by 4.8% in June, gold prices are holding above $1,750.

As inflationary pressures continue to increase faster than anticipated, the gold market is maintaining strong gains.

The U.S. Department of Commerce said on Friday that the core Personal Consumption Expenditures price index grew 0.6 percent last month on a monthly basis. The data on inflation surprised observers because they were expecting a 0.5 percent increase.

Core PCE rose 4.8 percent on an annual basis, up from the reading of 4.7 percent from last month.

Two months remain until the next Federal Reserve monetary policy meeting, and some analysts point out that gold still has opportunity to rise as long as expectations for a slowdown in inflation hold true. This would allow the Fed to gradually increase interest rates through the end of the year.