Gold Prices Under Pressure, PPI Higher Than Expected

(Kitco) – Thursday, April 11TH, 2019 – The gold market remains under pressure after wholesale inflation pressures rose sharply last month.

Thursday, the U.S. Labor Department said its Producer Price Index (PPI) rose 0.6% in March, following February’s increase 0.1% ; the data was significantly stronger than expected with economists’ forecasting an increase of 0.3%.

This is the first time in four months that producer inflation beat expectations.

At the same time core PPI, which strips out volatile food and energy costs, increased 0.3% last month, following February’s increase of 0.1%. Economists were expecting to see wholesale inflation rise 0.2%.

However, the gold market is not seeing much reaction to the higher inflation data. June gold futures last traded at $1,301.40 an ounce down 0.94% on the day.

Posted by :

Jack Dempsey, President

401 Gold Consultants LLC

jdemp2003@gmail.com

 

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