Gold Soars to $2,580 as Rate Cut Speculation Intensifies

Gold (XAU/USD) traded near $2,580 on Friday, rising 0.90% after hitting new record highs on Thursday. The surge followed a decisive breakout from a range the precious metal had been oscillating in since peaking on August 20.

Inflation Data Sparks Breakout

The initial catalyst for gold’s breakout was the release of mixed U.S. Producer Price Index (PPI) data for August. While headline PPI showed a sharper-than-expected slowdown, core PPI remained stubbornly high.

Despite this, markets interpreted the overall data as signaling disinflation, triggering the upward movement in gold.