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cailianshe news, september 12 (edited by zhao hao)as a series of us economic data came out, the spot gold price rose by nearly $40, reaching a high of $2,551.69 per ounce, setting a new record high. since the beginning of the year, the gold price has risen by more than 23%.

before the u.s. stock market opened on thursday (september 12), data released by the u.s. bureau of labor statistics showed that the producer price index (ppi) rose 0.2% month-on-month in august. although it was higher than the market's previous expectation of 0.1%, this was partly due to the fact that the 0.1% in july was revised down to 0%, which remained unchanged.

the year-on-year ppi growth slowed to 1.7% in august from an adjusted 2.1% in the previous month, the lowest level since march and 0.1 percentage point lower than the expected 1.8%.

year-on-year change in us ppi

after excluding volatile food and energy prices, the core ppi rose 0.3% month-on-month in august, slightly higher than the market expectation of 0.2%, but the previous value was revised down from flat to a month-on-month decrease of 0.2%; this slowed the year-on-year growth rate to 2.4%, lower than the market expectation of 2.5%.

paul ashworth, chief north american economist at capital economics, wrote: "august's ppi data provides the fed with more confidence that inflation has been contained. that said, the bar for a big rate cut remains high as housing cost inflation refuses to retreat."

yesterday, the u.s. core cpi rebounded slightly month-on-month, making the market almost certain that the fed will cut interest rates by 25 basis points at next week's meeting. however, the swap market still expects the bank to cut interest rates by a total of 100 basis points this year. if this forecast is true, we will definitely see a rate cut of 50 basis points or more this year.

another set of data released at the same time as the ppi showed that the number of first-time applications for unemployment benefits in the united states was 230,000 in the week ending september 7, seasonally adjusted, in line with market expectations. the figure for the previous week was revised up from 227,000 to 228,000.

seasonally adjusted initial unemployment benefit claims

while claims have risen recently, they have remained relatively flat for several weeks. economists have been watching for signs of a slowdown in the u.s. labor market, but so far the weekly data has offered no such warnings.

the european central bank cut interest rates as expected, but the "hawkish" decision led traders to cut their expectations for the bank's interest rates, and they expected only another 36 basis points of interest rate cuts before the end of the year. this pushed up eurozone government bond yields, and the euro rose more than ten points against the dollar in the short term, suppressing the dollar while benefiting gold.

ole hansen, head of commodity strategy at saxo bank, said: "a series of factors such as the ecb, initial jobless claims and ppi are enough to push gold prices to all-time highs." he added that for the gold market, the federal reserve's rate cut cycle will add support, regardless of the extent of the cut.