Gold prices break through, surpassing 5,200 USD despite strong US inflation

World gold prices are maintaining above the 5,200 USD/ounce mark amid rising inflationary pressure in the US, raising questions about whether this precious metal can maintain its upward momentum as the US Federal Reserve (Fed) faces the risk of having to postpone interest rate cuts.

According to data released by the US Department of Labor, the producer price index (PPI) in January increased by 0.5%, higher than analysts' forecast of 0.3% and continued the 0.4% increase in December. Year-on-year, wholesale inflation increased by 2.9%.

Notably, core PPI - excluding food and energy prices - increased by 0.8% in January, far exceeding the forecast of 0.3%. Compared to the same period last year, core PPI increased by 3.6%, higher than the expected level of 3.0%, showing that price pressure is showing signs of "deeply encroaching" on the economy.

However, the gold market did not record significant negative reactions after the data was released. Spot gold prices remained around 5,218 USD/ounce, up 0.66% during the day. Safe haven demand in the face of economic risks continues to support this precious metal.

However, many experts warn that high inflation may cause the Fed to be more cautious with its monetary policy easing plan. If price pressure continues, the possibility of interest rate cuts may be pushed back to the second half of the year.

Mr. Chris Zaccarelli - Investment Director of Northlight Asset Management - said that in the past time, the market has focused on concerns about the impact of artificial intelligence (AI) on the labor market, making inflation temporarily no longer a top concern. However, the strong PPI increase may cause stock investors to worry again and create more reasons for the Fed to delay lowering interest rates.

In the opposite direction, Ms. Chantelle Schieven - Head of Research at Capitalight Research, said that if the US economy continues to weaken, the Fed will be forced to cut interest rates even if inflation remains high.

According to her, the scenario of high inflation accompanied by a reduction in interest rates will reduce the opportunity cost of holding gold - an unprofitable asset, thereby creating a favorable environment for gold prices to continue to rise.

Analysts also emphasize that PPI is an early indicator of consumer inflation, as businesses often shift higher input costs to buyers. Therefore, the inflation diễn biến in the coming months will play a decisive role in the Fed's monetary policy and the next trend of gold prices.

In the short term, the 5,200 USD/ounce mark is considered an important psychological support zone. The ability for gold to stay above this threshold will depend on the next inflation data, US economic growth prospects and policy signals from the Fed.