Gold Prices Surge to Record Highs as US PMI Data Hits 10-Month Low

Spot gold prices experienced a significant rally, climbing above the $5,060 per ounce mark during today's session following disappointing economic data. This surge was triggered by the release of flash S&P PMI data, which indicated the weakest economic performance in 10 months. Investors reacted to the slowing economic activity by shifting capital toward safe-haven assets, boosting the demand for bullion. The weak manufacturing and services data have increased market expectations for potential interest rate cuts by the Federal Reserve to support the economy. Consequently, the US Dollar faced downward pressure, further supporting the upward momentum for XAU/USD. Analysts suggest that continued economic fragility could sustain gold's attractiveness as a hedge against a broader slowdown.