Gold Hits Fresh Records as Traders Overlook Strong GDP Data

Gold prices climbed to new highs as investors looked past stronger-than-expected GDP data and continued to favor the bullion’s hedge properties. Despite upbeat growth figures that might normally bolster risk assets and push yields higher, traders have focused on longer-term inflation concerns, subdued real yields and steady demand from exchange-traded funds and central banks.

Market participants said the dollar’s modest softness and a retreat in real U.S. Treasury yields helped underpin bullion’s rally. When inflation-adjusted yields fall, non-yielding assets such as gold become more attractive to investors seeking to preserve purchasing power. At the same time, safe-haven flows into gold ETFs and purchases by official sector buyers provided additional support.

Analysts note that fresh record levels for bullion reflect a balancing act: while solid GDP raises the prospect of tighter monetary policy, persistent inflation expectations and geopolitical uncertainties continue to incentivize allocations to precious metals. Traders appear to be positioning for a scenario in which central banks keep policy restrictive for longer, but inflation stays above target, leaving real rates relatively low.

Options and futures markets showed elevated volatility around the data release, yet positioning remained skewed toward bullish exposure. Physical demand in Asia, particularly for jewelry and investment bars, also contributed to tighter near-term supplies. Dealers reported healthy activity from private investors rotating into gold as a portfolio diversifier.

Looking ahead, market watchers will monitor incoming inflation readings, central bank communications and U.S. Treasury yields for cues on whether gold’s ascent can be sustained. Key catalysts include consumer price data and commentary from policymakers that could reshape expectations for the path of interest rates. For now, the market’s reaction suggests investors are pricing in a mix of resilient growth and persistent inflation — an environment where gold can thrive as both a hedge and a speculative play.