Gold Reaches Record High As Dollar Weakens On Soft Producer Inflation Data; Wall Street Eyes Fourth Day Of Gains
Portfolio Pulse from Piero Cingari
Gold prices hit a record high as the U.S. dollar weakens following softer-than-expected producer inflation data. U.S. equity futures indicate potential gains, with the S&P 500, tech stocks, and small caps showing positive premarket movements. Treasury yields and the dollar declined, impacting related ETFs.
September 12, 2024 | 1:32 pm
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POSITIVE IMPACT
Gold prices reached a new all-time high, rising by 1.1% to $2,538 per ounce, driven by a weaker dollar following soft U.S. producer inflation data.
The weaker dollar and lower Treasury yields, resulting from softer-than-expected inflation data, have increased the attractiveness of gold as a safe-haven asset, pushing its price to a record high.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The iShares Russell 2000 ETF rose 0.4% in premarket trading, indicating gains in small-cap stocks following the inflation data.
The inflation data has positively impacted small-cap stocks, leading to a rise in the IWM ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco QQQ Trust, Series 1 was 0.1% higher in premarket trading, reflecting positive sentiment in tech stocks following the inflation data.
The positive market sentiment from the inflation data has led to gains in tech stocks, as reflected in the QQQ ETF.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust traded 0.2% higher in premarket as U.S. equity futures indicate potential gains following the inflation data.
The softer inflation data has positively influenced market sentiment, leading to a rise in U.S. equity futures, including the S&P 500.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The Energy Select Sector SPDR Fund was the top-performing S&P 500 sector in premarket, up 0.6%, driven by positive market sentiment.
The positive sentiment from the inflation data has led to gains in the energy sector, as reflected in the XLE ETF.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF fell 0.2% as U.S. Treasury yields softened following the inflation data release.
Softer inflation data led to a decrease in Treasury yields, negatively impacting the TLT ETF, which tracks long-term U.S. Treasury bonds.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF slipped 0.1% as the U.S. dollar weakened due to softer producer inflation data.
The weaker-than-expected inflation data led to a decline in the U.S. dollar, negatively affecting the UUP ETF, which tracks the dollar's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80