Gold Hits Record High as Global Markets React to U.S. Inflation Data

Gold prices surged to a new all-time high in local and global markets on Thursday, driven by a weaker U.S. dollar following the release of key inflation data from the Producer Price Index (PPI) and unemployment claims in the United States. The price of gold per ounce rose to a record-breaking $2,554, reflecting increased investor demand for safe-haven assets.

Saeed Imbabi, CEO of iSagha, an online platform for trading gold and jewelry, confirmed that gold prices in the local market increased by EGP 35 during the day’s trading. As a result, 21-karat gold reached EGP 3,430 per gram. The global price of gold also jumped by $40 per ounce, settling at $2,554, marking a significant rise compared to previous trading sessions.

Imbabi added that other gold grades also saw sharp increases. The price of 24-karat gold climbed to EGP 3,920 per gram, while 18-karat gold reached EGP 2,940 per gram. Additionally, 14-karat gold now stands at EGP 2,287, and a full gold pound is valued at EGP 27,440.

This surge follows a relatively stable day in local markets on Wednesday when the price of 21-karat gold opened at EGP 3,390 per gram and closed at EGP 3,395. In the global market, gold experienced a slight decline, with the price per ounce dropping from $2,517 to $2,513.

The rise in gold prices above $2,554 per ounce is largely attributed to the latest U.S. inflation figures, which surpassed previous records set on August 20, when the price hit $2,532.

The U.S. core Producer Price Index (PPI), excluding food and energy, rose by 2.4% in August, matching July's increase but slightly below market expectations of 2.5%, according to the U.S. Bureau of Labor Statistics. On a monthly basis, core PPI increased by 0.3%, rebounding from a revised decline of 0.2% in July, and surpassing economists' expectations of a 0.2% rise.

Meanwhile, the headline PPI increased by 1.7% in August, following a 2.1% rise in the previous month. This was lower than the expected 1.8%. Month-on-month, the PPI rose by 0.2%, exceeding both the revised 0.0% figure from July and market expectations of 0.1%.

The inflationary pressures, coupled with the declining dollar, have spurred a rush towards gold as a safe-haven asset. With continuing economic uncertainty, inflation concerns, and currency fluctuations, gold prices are likely to remain high as investors seek stability in volatile markets.