Gold Lower After US PPI Rose in September

Gold prices ticked down as producer inflation pressures in the U.S. met expectations for September.

Producer Price Index (PPI) rose 0.4% last month following an increase of 0.2% in August, the U.S. Labor Department said on Thursday. According to consensus forecasts, economists were expecting to an increase of 0.4%.

The annual PPI advanced to 2.6% in September, which marked the quickest pace in over five years and beat economists’ expectations of 2.5%.

Core inflation, which strips out volatile food and energy prices was up 0.2% in September, the same as in August. Annual core inflation came in at 2.1%, beating market consensus forecasts of 2%.

Immediately after the release, gold edged down, with December Comex gold futures last seen trading at $1,294.90 an ounce, up 0.47% on the day. Prior to the release gold prices hit a two-week high in pre-U.S. session trading.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza