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(Wallace Refiners) – The gold market is holding on to strong gains but continues to see little reaction to inflation data.
Friday, the U.S. Labor Department reported mixed wholesale inflation pressures; it said its Producer Price Index (PPI) rose 0.3% in October, following September’s 0.4% increase; the data were stronger than expected with economists’ forecasting an increase of 0.2%.
For the year, inflation is up 1.1%, the largest increase since February, the report said.
Meanwhile, core inflation pressures, which strips out volatile food and energy costs, rose 0.1% last month. The data missed expectations with economists looking for a 0.2% rise.
Annual core inflation rose 0.8% to 1% in October, the largest increase since March, the report said.
Gold prices have been largely unaffected by the latest inflation data as investors continue to follow the unbaiting spread if the COVID-19 virus. Investors’ concerns continue to swirl around financial markets that that virus will continue to devastate the global economy.
December gold futures last traded at $1,890 an ounce, up 0.89% 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.
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