Futures on the DJIA are trading flat at 37,990 in early hours, with traders cautious ahead of jobless claims data. Economic resilience keeps downside risks limited, but momentum indicators warn of overbought conditions in the short run. Andre Dragosch, Head of Research at Bitwise in Europe, attributes gold’s record highs and the U.S. equity sell-off to rising short- and medium-term inflation expectations, coupled with declining consumer confidence. “The recent rally in gold to new all-time highs likely reflects both increasing inflation expectations and a broader flight to safety,” Dragosch explains. “In fact, both short- and medium-term inflation expectations in the University of Michigan consumer survey have risen to multi-decade highs. U.S. consumers are growing increasingly concerned about inflation, likely due to the Trump administration’s new tariff policies.” He further notes, “Meanwhile, U.S. equities have been selling off due to mounting economic uncertainty driven by these trade policies, as well as rising recession risks amid a slowdown in the labor market. Both factors have significantly buoyed the price of gold.” The August consumer price index rose 2.9% on an annual basis last month, in line with expectations. Month over month, however, it climbed 0.4% — topping a Dow Jones consensus for a 0.3% increase. DJIA futures live data reveals a 0.12% gain, driven by gains in banking and manufacturing stocks. Technical charts point to bullish flag formations, adding credibility to forecasts of a push toward 38,200 by mid-session.