Breaking: Gold rises above $2,040 to highest since March 2022 after US data

• US data weighs on the US Dollar, fuels gold rally.

• XAU/USD gains more than $30 on Thursday, trades above $2,040 at the highest in 13 months.

Gold price rose more than $10 following the release of the March US Produce Price Index that came in below expectations and an increase in Initial Jobless Claims, triggering a dollar sell-off. XAU/USD jumped from below $2,030/oz to $2,040, the highest level since March 2022.

The weekly Jobless Claims report pointed to a softening of the US labor market while at the same time, the Producer Price Index showed a larger-than-expected decline, with the annualized rate falling from 4.9% in February to 2.7% in March, the smallest since January 2021. The economic figures pushed US yields to the downside and triggered a dollar sell-off. At the same time, Wall Street futures climbed. All positive for gold.

XAU/USD rose from under $2,030, breaking above $2,040. As of writing, it trades at $2,045, up 1.45% for the day, at the highest in a year. Above $2,050, attention would turn to the record high around $2,075.