Gold prices surge to record highs amid weaker USD and softer US economic data, while equities retreat on tech sector concerns.
Gold prices climbed $169 to $4245 on Wednesday, extending gains as US Treasury yields fell 1.2 basis points to 4.61%. The rally followed softer-than-expected US economic data, including a July ISM services index of 54.1, below the 54.5 forecast, and ADP employment growth of 44K, missing the 70K estimate.
The S&P Global services PMI final print of 54.6 exceeded the preliminary 53.6, but broader risk sentiment remained cautious. The Canadian dollar led FX gains, while the USD lagged, supporting commodity-linked currencies. Equities faced headwinds, with the S&P 500 down 0.2% and Nasdaq off 0.8%, as tech sector reshuffles weighed on sentiment.
WTI crude oil declined 69 cents to $75.08, reflecting mixed market dynamics. Fed’s Kashkari suggested a preference for gradual rate hikes over delayed action, adding to policy uncertainty.