Gold (XAU/USD) surged to new record highs of $2,551 on Thursday, breaking out of its previous trading range, following the release of U.S. inflation data and jobless claims figures. The precious metal’s rise was fueled by a broad weakening of the U.S. Dollar (USD).
The U.S. Producer Price Index (PPI), often referred to as “factory gate” inflation, showed a 2.4% year-on-year increase in core PPI for August, matching July’s figure but falling short of the 2.5% market expectations, according to the Bureau of Labor Statistics (BLS). On a monthly basis, core PPI rose by 0.3%, exceeding the expected 0.2% increase and rebounding from the previous month’s downwardly revised 0.2% decline.
Headline PPI, which includes food and energy, saw a 1.7% annual rise, down from the revised 2.1% in July and below the forecast of 1.8%. On a month-to-month basis, headline PPI grew 0.2%, ahead of the anticipated 0.1% gain, after a revised flat reading for July.
Alongside the inflation data, U.S. jobless claims for the week ending September 6 came in at 230,000, slightly above the revised 228,000 from the previous week, and in line with forecasts. Continuing jobless claims also edged higher to 1.85 million, slightly up from the revised 1.845 million figure.
The combination of mixed inflation data and rising jobless claims contributed to a decline in the USD, providing further support for gold’s record-breaking rally.
