Gold prices surged to a new record high, surpassing $2,550, following the release of US Producer Price Index (PPI) inflation data. On Thursday, gold (XAU/USD) broke out of its established trading range, reaching an all-time high of $2,551.
Impact of US Inflation Data
The spike in gold prices was driven by the latest US inflation figures, specifically the PPI. The PPI, excluding food and energy, increased by 2.4% in August, matching the previous month’s figure but falling short of the 2.5% forecast. Core PPI rose by 0.3% for the month, compared to a downwardly revised 0.2% decline in July, and slightly exceeded expectations of a 0.2% increase.
Headline PPI climbed 1.7% in August, a decrease from the revised 2.1% rise in July and below the expected 1.8%. Monthly PPI rose 0.2%, up from the revised 0.0% in July and above the anticipated 0.1%.
US Jobs Data Influence
In addition to inflation data, US job figures were released. Initial Jobless Claims for the week ending September 6 increased to 230,000, slightly above the revised-up 228,000 from the previous week and in line with forecasts. Continuing Jobless Claims rose to 1.850 million, surpassing the previous week’s revised figure of 1.845 million.
Technical Analysis of Gold
Gold has broken out of its multi-week sideways range, reaching a new high for 2024 at $2,551 during the US trading session on Thursday. The longer-term trend for gold remains bullish, with the metal having met its initial target of $2,550 set after the breakout from the July-August range on August 14.
Future Outlook
This record high opens the path to a new target of $2,570, based on the 0.786 Fibonacci ratio from the previous trading channel. As the trend remains positive, gold is likely to continue its upward trajectory.
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