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Home Gold News Gold Reaches Record Highs Amidst Fed Comments and Economic Data

Gold Reaches Record Highs Amidst Fed Comments and Economic Data

by anna

In the North American session on Thursday, gold prices surged to a new all-time high, reaching $2,225. Despite advancing US Treasury yields, which typically support the Greenback, precious metal prices continued their upward trend. This resilience is attributed to hawkish remarks from a Federal Reserve (Fed) policymaker and strong economic indicators from the United States (US). Currently, XAU/USD trades at $2,221, marking a gain of more than 1.20%.

Christopher Waller, a Fed Governor, stated that the central bank is not inclined to rush into rate cuts, although he anticipates the beginning of an easing cycle. He emphasized the importance of observing several months’ worth of evidence indicating inflation’s movement towards the Fed’s 2% target.

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On the data front, the US economy exhibited faster-than-anticipated growth. The latest Initial Jobless Claims (IJC) report revealed a tight job market. Additionally, a poll conducted by the University of Michigan showed an improvement in consumer sentiment. Moreover, Pending Home Sales in February surpassed January’s figures.

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Looking ahead, gold traders are closely watching for the release of the Fed’s preferred gauge for inflation, the Core Personal Consumption Expenditure (PCE) price index for February. This data release is expected to provide further insights into the direction of both inflation and gold prices in the upcoming week.

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