Gold is nearing its record level, supported by expectations that upcoming inflation data might clarify the Federal Reserve’s pace of monetary easing. After a dip on Wednesday, gold resumed its upward trend, showing an increase of over 2% in August. Meanwhile, gram gold hit a record high of 2,764 TRY during the day. Spot gold is trading at $2,519 per ounce on the third trading day of the week.
The figures to be released on Friday are expected to show that the three-month annual core inflation rate has fallen to 2.1%, just above the central bank’s 2% target, which could justify interest rate cuts.
The precious metal has risen by about 20% this year. Other factors supporting gold’s upward trend include increased purchases by central banks and Chinese consumers, as well as ongoing conflicts in the Middle East and Ukraine.
