Gold surged near a record high of $3,650 an ounce on Wednesday (September 10) after an unexpected decline in US producer prices reinforced expectations that the Federal Reserve will continue cutting interest rates at its meeting next week. Both headline and core PPI fell 0.1% in August, against projections for a 0.3% increase, driven by a sharp decline in wholesale margins for machinery and vehicles.
The data follows a weak labor market report earlier this month that has prompted markets to price in several Fed rate cuts this year. Investors now await Thursday's consumer price inflation report for further guidance
Geopolitical risks are also boosting demand for safe-haven assets, as US President Donald Trump urged the European Union to impose tariffs of up to 100% on China and India to pressure Russia over the war in Ukraine, escalating unrest in the Middle East, and Poland saying it shot down a Russian drone that violated its airspace during a major offensive in western Ukraine. (alg)
Source: Trading Economics
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