The rise reflects a prolonged bullish trend and suggests the metal could continue to gain ground if it maintains this trajectory. It thus reached a new all-time high following the US economic data.
Gold breaks its established range and reaches new historical highs of $2,535 this Thursday after the publication of inflation data in the US, specifically price inflation in “factory gate” or the Producer Price Index (PPI).
Metals soar to a new record and the US dollar (USD) weakens following the release of PPI and jobless claims data on Thursday. The US Producer Price Index (PPI), excluding food and energy, rose 2.4% in August, the same as the 2.4% recorded in July. The result was below expectations of 2.5%, according to data from the US Bureau of Labor Statistics (BLS).
For the month, core PPI rose 0.3% compared with a downwardly revised 0.2% decline in July. Economists had expected a 0.2% increase.
The headline PPI rose 1.7% in August, after a downwardly revised 2.1% increase in the previous month. The result was below expectations of 1.8%. On a monthly basis, the PPI rose 0.2%, compared with the downwardly revised 0.0% recorded in July and higher than the 0.1% expected.
Employment data in the north released at the same time showed that initial jobless claims rose to 230,000 in the week ending September 6up from the previous week’s upwardly revised 228,000 and in line with the forecast of 230K.
Continuing jobless claims rose to 1.850 million, up from an upwardly revised 1.845 million the previous week, according to the Labor Department.
Gold hits new all-time highs
Gold’s long-term trend is bullish, and since “the trend is your friend,” this increases the odds of it reaching a yet-to-be-achieved bullish target in US$2,550generated after the original breakout of the July-August range on August 14. If gold breaks above the range highs, it will likely quickly reach its target.
Gold could have enough strength to continue rising in the current geopolitical and economic climate, according to Adam Hamilton, founder of Zeal Intelligence, who says that prices of the precious metal are poised to continue rising as Americans dive into safe haven assets while the stock market and artificial intelligence (AI) bubbles burst.
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In an article published on Mining.com, Hamilton claims that gold prices reached this level, rising 38.7% in less than 11 months, recording several all-time highs without the usual suspects behind this increase during this period.
He noted that this bull market in gold has been driven mainly by Chinese investors and central banks, with participation from gold futures speculators. He explained that demand is unlikely to slow down in the short term as stock markets plummet and the gold yuan continues to rise.
Source: Ambito
