Gold settles near a record high
Gold prices witnessed a strong performance during Thursday's trading, settling near the record high recorded this week, despite today's declines.
The precious metal is currently trading around the level of 3,630 dollars per ounce, as it approaches the test of its highs of 3,674 dollars recorded this week.
The main pillars of the ascent
This strong performance of gold is attributed to two main factors:
- Expectations of adopting a more flexible monetary policy: economic data from the United States came to confirm the decline in inflation pressures, as the producer price index unexpectedly fell last August by 0.1%, contrary to analysts expectations of a slight increase.
This decline, along with signs of a weakening labor market, strengthens the likelihood that the Federal Reserve (the US central bank) will cut interest rates next week.
- Rising geopolitical risks: international tensions increase the attractiveness of gold as a traditional safe haven that preserves value in times of uncertainty.
Looking ahead: the pillars of resilience continue
Analysts expect continued support for gold prices for the rest of 2025.
Global economic risks remain, including:
- Persistent inflation fears.
- High levels of government debt around the world.
- Slowing economic growth in the United States.
- The decline of labor market indicators in general.
These factors, coupled with the tense geopolitical environment, will continue to strengthen gold's position as one of the most important hedging assets in investors portfolios.
Next stop: Consumer Price Report
Investors around the world are eagerly awaiting the release of the US Consumer Price Index (CPI) report on Thursday, which will provide one of the most important and up-to-date readings on the path of inflation, and will be a crucial indicator of the Fed's monetary policy outlook, and it is expected that the market reaction to these data will dominate the short-term trend of gold prices.
