Gold Gains Nearly 1%
Gold prices rose to around $4,150 an ounce on Thursday, supported by a broader flight to safety amid a global equity sell-off and a tech rout driven by concerns over the sustainability of AI spending in a high-interest-rate environment. A weaker US dollar and geopolitical tensions in the Middle East and Ukraine also supported the precious metal. Meanwhile, US producer price data added to signs of mounting inflationary pressures, echoing the CPI report released on Wednesday. Persistent inflation has reinforced expectations that the Fed will keep interest rates elevated for longer, a headwind for non-yielding gold. Other major central banks, including the ECB, the BoE and the BoJ, are also expected to tighten monetary policy, adding to pressure on bullion.
Gold prices rose to around $4,150 an ounce on Thursday, supported by a broader flight to safety amid a global equity sell-off and a tech rout driven by concerns over the sustainability of AI spending in a high-interest-rate environment. A weaker US dollar and geopolitical tensions in the Middle East and Ukraine also supported the precious metal. Meanwhile, US producer price data added to signs of mounting inflationary pressures, echoing the CPI report released on Wednesday. Persistent inflation has reinforced expectations that the Fed will keep interest rates elevated for longer, a headwind for non-yielding gold.
Other major central banks, including the ECB, the BoE and the BoJ, are also expected to tighten monetary policy, adding to pressure on bullion.