Editor’s Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today’s must-read news and expert opinions. Sign up here!
(Wallace Refiners) – The gold market is seeing little movement as future inflation pressure remained muted with producer prices rising relatively in line with expectations.
Friday, the U.S. Labor Department said its Producer Price Index (PPI) rose 0.1% in November, following October’s increase of 0.3%; the data was in line with economists’ forecasts.
Core PPI, which strips out volatile food and energy costs, rose 0.1% last month, following October’s increase of 0.1%. However, economists were expecting to see a 0.2% increase.
The gold market is not seeing much reaction to the latest inflation data. February gold futures last traded at $1,842.5, up 0.28% on the day.
Economists pay close attention to producer prices as it is a leading indicator for consumer prices. Traditionally, companies pass on higher costs to their customers.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
