US PPI fell short of expectations, gold approached its historical high, and the market focus shifted to CPI
2025-09-11 00:43:40
Spot gold prices continued their upward trend on Wednesday (September 10), following a sharp rebound on Tuesday. Earlier, gold prices soared to an all-time high near $3,675 before stabilizing around $3,625. Spot gold traded near $3,645, up approximately 0.51% on the day. Gold prices continued their upward trend after weaker-than-expected U.S. Producer Price Index (PPI) data fueled market bets on a Federal Reserve interest rate cut next week, but the data did not provide sufficient basis for a larger rate cut.
The US Producer Price Index (PPI) showed a significant downward surprise in August. The headline PPI fell 0.1% month-over-month, contrary to market expectations for a 0.3% increase. July's PPI figure was also revised down from a 0.9% increase to 0.7%. Year-over-year, overall inflation fell to 2.6%, below the 3.3% forecast. The core PPI, excluding food and energy prices, fell 0.1% month-over-month (versus a 0.3% increase expected), while year-over-year growth slowed significantly from 3.7% to 2.8%.
Thursday's Consumer Price Index (CPI) will be the last key inflation data before the Federal Reserve's monetary policy meeting. While the market generally expects the Fed to cut interest rates next week, the data will help influence market expectations for the pace of rate cuts after September.
Overall, gold continues to receive support from multiple underlying drivers. A weakening dollar has made precious metals more attractive to overseas buyers; continued steady gold purchases by central banks have further solidified its status as a strategic asset; and intensified trade frictions related to US tariffs, coupled with ongoing geopolitical tensions, have boosted demand for safe-haven assets. Furthermore, uncertainty surrounding the Federal Reserve's policy independence amidst growing political pressure has heightened investor caution, keeping gold prices near record highs.
Technical analysis: Spot gold bulls aim for new record above $3,675
(Source of spot gold 4-hour chart: Yihuitong)
Looking at the 4-hour chart, spot gold's bullish structure continues to extend. Since bottoming out near $3,300 in late August, gold prices have formed a stair-step upward trend of higher highs and higher lows. The latest phase of this rally has pushed gold prices into the $3,650 range and reached a new all-time high around $3,675.
At present, the price of gold is still firmly above the 21-period simple moving average (SMA) of $3,625, which continues to play a dynamic support role; while the 50-period simple moving average (SMA) of $3,559 constitutes a deeper support level.
Momentum indicators remain consistent with the bullish tone: the relative strength index (RSI) remains above 62, maintaining its strong position and confirming the persistence of buying pressure; the average directional index (ADX) is above 38, approaching the strong trend range of 40 to 60.
As long as the gold price holds the immediate support level near $3,600, its most likely trend will still be upward, and it will have the opportunity to launch another attack on new historical highs.
At 00:42 Beijing time, spot gold was quoted at US$3642.48 per ounce, up 0.45%.
The US Producer Price Index (PPI) showed a significant downward surprise in August. The headline PPI fell 0.1% month-over-month, contrary to market expectations for a 0.3% increase. July's PPI figure was also revised down from a 0.9% increase to 0.7%. Year-over-year, overall inflation fell to 2.6%, below the 3.3% forecast. The core PPI, excluding food and energy prices, fell 0.1% month-over-month (versus a 0.3% increase expected), while year-over-year growth slowed significantly from 3.7% to 2.8%.
Thursday's Consumer Price Index (CPI) will be the last key inflation data before the Federal Reserve's monetary policy meeting. While the market generally expects the Fed to cut interest rates next week, the data will help influence market expectations for the pace of rate cuts after September.
Overall, gold continues to receive support from multiple underlying drivers. A weakening dollar has made precious metals more attractive to overseas buyers; continued steady gold purchases by central banks have further solidified its status as a strategic asset; and intensified trade frictions related to US tariffs, coupled with ongoing geopolitical tensions, have boosted demand for safe-haven assets. Furthermore, uncertainty surrounding the Federal Reserve's policy independence amidst growing political pressure has heightened investor caution, keeping gold prices near record highs.
Technical analysis: Spot gold bulls aim for new record above $3,675
(Source of spot gold 4-hour chart: Yihuitong)
Looking at the 4-hour chart, spot gold's bullish structure continues to extend. Since bottoming out near $3,300 in late August, gold prices have formed a stair-step upward trend of higher highs and higher lows. The latest phase of this rally has pushed gold prices into the $3,650 range and reached a new all-time high around $3,675.
At present, the price of gold is still firmly above the 21-period simple moving average (SMA) of $3,625, which continues to play a dynamic support role; while the 50-period simple moving average (SMA) of $3,559 constitutes a deeper support level.
Momentum indicators remain consistent with the bullish tone: the relative strength index (RSI) remains above 62, maintaining its strong position and confirming the persistence of buying pressure; the average directional index (ADX) is above 38, approaching the strong trend range of 40 to 60.
As long as the gold price holds the immediate support level near $3,600, its most likely trend will still be upward, and it will have the opportunity to launch another attack on new historical highs.
At 00:42 Beijing time, spot gold was quoted at US$3642.48 per ounce, up 0.45%.
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