Gold prices surged to record highs above $2,490 per ounce on Friday, rising more than 1.7% at 9:50 a.m. EST. A weakening U.S. dollar and declining Treasury yields fueled the rally. The U.S. dollar index (DXY), as tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), dropped 0.4% The greenback is down nearly 1% against the Japanese yen. Treasury yields softened, with the 2-year yield decreasing by 4 basis points to 4.05% The 10-year yield edged down by 2 basis points to 3.89%. Year-to-date, gold is up 21%, setting the stage for its strongest annual performance since 2020 when it gained 25%. The rise in gold prices reflects growing anticipation that the Federal Reserve will initiate a series of rate cuts. Inflation Decelerates July's inflation data, for both producer and consumer prices, slightly undershot expectations this week, reinforcing the disinflationary trend that is firmly on track. Producer prices rose just 0.1% month-over-month in July, following a 0.2% increase in June, and came in below the 0.2% forecast. On an annual basis, producer inflation slowed to 2.2%, down ...