Gold Prices Surge Again, Approaching US$5,300
Jakarta, CNBC Indonesia — Global spot gold prices closed sharply higher during the final trading session of the week.
According to Refinitiv data, global gold closed at US$5,277.29 or up 1.74% on Friday’s trade (27 February 2026). This level also marked the highest point in the past month since 30 January 2026. On a weekly basis, global gold prices strengthened by 3.41%.
The increase occurred following the release of US producer inflation data that came in higher than market expectations. This situation presented market participants with two major competing sentiments: concerns that interest rates would remain elevated for longer and buying pressure for gold as a hedge asset.
US Producer Price Index (PPI) data, a key benchmark for markets in gauging inflation trajectory and predicting the US Federal Reserve’s future policy steps, proved crucial. The US Department of Labour reported that final demand PPI in January rose 0.5% on a monthly basis. This figure exceeded market expectations of 0.3% and also surpassed December’s increase, which was revised upwards to 0.4%. The PPI increase was primarily driven by the services sector, which surged 0.8%, partly due to trade services margins rising 2.5%. Nevertheless, on an annual basis, producer inflation slowed to 2.9%.
Several components within PPI data are also used in calculating Personal Consumption Expenditures (PCE) inflation, which is the Federal Reserve’s preferred inflation indicator. Consequently, the higher-than-expected PPI data increased market caution that inflationary pressures have not fully subsided. Several economists even forecast January core PCE inflation could reach 0.5%, although official data will not be released until 13 March.
On another front, gold also received support from heightened global uncertainty. The United States began implementing temporary 10% global import tariffs last Tuesday. However, White House officials stated that President Donald Trump’s administration is seeking to raise those tariffs to 15%. This plan heightened market concerns about potential new pressures on global trade and inflation.
In his state of the union address, Trump also stated that nearly all countries and corporations want to maintain the existing tariff and investment agreements with Washington.
This situation has sustained interest in safe-haven assets heading into the weekend. Gold is widely recognised as a hedge asset when markets are gripped by uncertainty. Besides tending to benefit when interest rates are low, gold is frequently sought by investors as a value protector when inflationary pressures remain elevated.