FX.co ★ Gold Gains Nearly 1%

Gold prices climbed to around $4,150 an ounce on Thursday, buoyed by a broad flight to safety amid a global equity sell-off and rising inflation expectations. A sharp downturn in technology stocks, driven by doubts over the sustainability of AI-related spending in a high-interest-rate environment, heightened overall market uncertainty. At the same time, US producer price figures underscored mounting inflationary pressures, mirroring Wednesday’s CPI data and reinforcing expectations that the Federal Reserve will keep interest rates elevated for longer—further tightening conditions for heavily indebted borrowers. A weaker US dollar and persistent geopolitical tensions in the Middle East and Ukraine offered additional support for the precious metal.