Gold Remains High Despite Inflation Drop

Gold prices remain near their overnight five-month high following data that showed a drop in pipeline inflation pressures last month.

Thursday, the U.S. Labor Department said its Producer Price Index fell 0.1% in March, down from the 0.3% rise seen February. According to consensus forecasts, economists were expecting to see a flat reading in inflation.

The report said that headline inflation rose 2.3% in the last 12 months, “the largest increase since moving up 2.4 percent for the 12 months ended March 2012.”

Core inflation, which strips out volatile food and energy prices was unchanged last month following a 0.2% rise.

Annual core inflation rose 1.6% last month, below economist expectations but higher than last month’s rise of 1.5%.

June gold futures last traded at $1,288.40 an ounce, up 0.81% on the day and was less than four dollars from the session highs.

Market participants monitor the data as a gauge for inflation at the wholesale level. PPI is seen as a leading indicator because traditionally, producers pass on higher prices to their customers. The Consumer Price Index is scheduled for release on Friday, although markets will be closed for the Easter Holiday.

via Kitco

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.