Gold prices surged to record highs amid growing expectations that the US Federal Reserve will start cutting interest rates next week from their 23-year peaks.
Spot gold prices climbed by as much as 1.5%, reaching $2,551.73, following today’s wholesale inflation data, which reinforced the need to reduce borrowing costs. The producer price index fell from 2.1% to 1.7% in August, marking the smallest increase in wholesale inflation since February.
Additionally, new data revealed a further slowdown in the employment market, with initial jobless claims rising by 2,000 to 230,000 for the week ending September 7, according to the Labor Department.
Ole Hansen, head of commodities strategy at Saxo Bank, commented, “A combination of an anticipated ECB rate cut, modest increases in jobless claims, and a lower PPI has been sufficient to push gold to a new record high.”
