GOLD PRICE SURGES ABOVE $2,350 AMID HOT US PPI, FED CHAIR POWELL’S HAWKISH STANCE

• Gold jumps 0.97% after US producer price data shows higher-than-expected inflation.
• Despite a spike, Treasury yields reversed to 4.445%, weakening Greenback and boosting Gold.
• Powell's waning confidence in disinflation and optimistic GDP outlook of 2% or more fuel Gold's rise.

Gold prices climbed past the $2,359 figure on Tuesday after data released by the US Department of Labor revealed that factory gate inflation rose above estimates, signaling that prices remained elevated. Despite that, US Treasury yields are sliding, a headwind for the Greenback.

Federal Reserve (Fed) Chair Jerome Powell made headlines after the release of the Producer Price Index (PPI). He commented that he expects inflation to continue heading lower but wasn’t as confident about the disinflation outlook as he had previously been. He added that the Gross Domestic Product (GDP) is expected to grow by 2% or better due to the labor market's strength.

The XAU/USD trades at $2,359, up 0.97%. The US Bureau of Labor Statistics (BLS) revealed that prices paid by producers increased above estimates, with just one reading aligning with economists’ consensus. US Treasury yields jumped sharply toward a daily high of 4.534%, before reversing later.