GOLD: Near All-Time Highs Ahead Of US PPI & Claims Data

Gold is steady in today’s Asia-Pac session, after closing 0.2% lower at $2511.76 on Wednesday. Earlier in yesterday's session it had risen briefly to a peak of $2,529, close to last month’s record high.

• Yesterday, US CPI data drove US Treasury yields higher and the curve flatter. The 2-year finished 5bps higher at 3.64% after hitting a new 2-year low earlier in the session. The 10-year was up 1bp at 3.65% in spite of a very successful auction. The curve closed in positive territory for a fourth straight day.
• US Core CPI surprised higher in August on a housing inflation rebound, rising 0.281% last month against expectations for a 0.2% increase. The annual rates for Headline and Core CPI were 2.5% and 3.2% respectively.
• While chances of a 50bp rate cut next week by the FOMC has fallen off, markets still have Thursday's PPI and weekly claims data to absorb.
• Lower rates are typically positive for gold, which doesn’t pay interest.
• According to MNI’s technicals team, the trend condition is unchanged, and the primary direction remains up despite bullion continuing to trade in a range over recent weeks. Sights remain on $2,536.4 next, a Fibonacci projection.