Gold edged closer to a record high on Wednesday as investors awaited the release of key inflation data that could provide insight into the Federal Reserve’s next interest rate policy decision. The gold bullion reached $2,478.61 an ounce, putting it within $5 of its all-time peak, while spot gold rose by 0.3% to $2,473.25. Gold has risen by roughly 20% since the start of the year.
On Tuesday, the monthly Producer Price Index was released. Lower than economists’ expectations, the PPI report suggested that inflation is continuing to cool, thereby raising bets of an impending rate cut. Still, further insights are expected to be drawn from the upcoming Consumer Price Index (CPI) report, due later on Wednesday.
Fed Bank of Atlanta President Raphael Bostic revealed that, despite the positive economic data to date, he is looking to reflect on more data before throwing his support behind a rate cut. Rhona O’Connell, an analyst from StoneX, observed that the central bank, “has the benefit of a second set of numbers in the first half of September, so the August numbers will set the scene, but will not be pivotal.”