Gold Touches Record High Amid Upbeat US Data

The price of gold has unexpectedly surged to an all-time high of $2,225, despite challenges from rising Treasury yields and a strong US dollar. Gold keeps rising in spite of hawkish remarks made by Federal Reserve (Fed) Governor Christopher Waller and positive U.S. economic data.

Gold Rallies

Gold achieved the remarkable $2,225 level on Thursday, marking its historic high. This occurred during the North American session. Because of the strength of the US dollar, precious metal prices continue to hold steady even as U.S. Treasury yields rise. Gold prices are supported by the combination of strong economic data from the US and hawkish comments made by a Fed policymaker. At $2,221, the XAU/USD pair is currently trading, indicating gains of more than 1.20%.

Fed’s Stance, US Economic Performance

Despite anticipation of an easing cycle, Fed Governor Christopher Waller made it clear that the central bank is not hurrying to lower rates. He does, however, stress the necessity of several months’ worth of data showing inflation is in line with the Fed’s 2% target.

According to the data, the US economy grew more quickly than was predicted. A competitive employment market is shown by the Initial Jobless Claims (IJC) report. The University of Michigan reported an improvement in consumer confidence. February’s pending home sales numbers exceeded those from January.

Looking Ahead

The release of the Core Personal Consumption Expenditure (PCE) price index for February, the Fed’s favourite inflation indicator, is eagerly anticipated by gold dealers. This crucial metric will offer valuable perspectives on the inflationary forces on the American economy.

The prospect of a muted February inflation data continues to fuel gold’s rise. While the headline PCE is predicted to slightly increase, analysts predict that the Core PCE will slow from 0.4% to 0.3% MoM.